Sixth Circuit Rejects DOJ's "Fairyland" Damages Calculation and Awards Actual Damages Based on Benefit of the Bargain
Client Alert | 1 min read | 02.12.16
In U.S. ex rel. Wall v. Circle C Constr., LLC, (Feb. 4, 2016), the Sixth Circuit rejected the government's "creative" accounting in an FCA case based on violations of the Davis-Bacon Act, vacating a treble damages award of $763,000 where the defendant's subcontractor underpaid its employees for electrical work at numerous Army warehouses by a total of $9,900, and remanding with instructions to award only $14,748 (after applying a settlement payment by the subcontractor). "Actual damages by definition are damages grounded in reality," the court reasoned in rejecting the notion that all of the subcontractor's electrical work was "tainted" or rendered worthless by the underpayments, particularly where the harm was easily calculated and there was no dispute as to the work performed given that "the government turns on the lights every day."
Insights
Client Alert | 2 min read | 03.31.25
Canadian CMMC? Canada Proposes Cyber Compliance Regime for Canadian Defense Suppliers
On March 12, 2025, the Government of Canada announced plans to launch the Canadian Program for Cyber Security Certification (CPCSC). CPCSC is a cybersecurity compliance verification program that aims to protect sensitive unclassified government information handled by Canadian government contractors and subcontractors within Canada’s defense sector. Canada will roll out CPCSC to contractors in four phases, with the first phase launching this month.
Client Alert | 5 min read | 03.28.25
Client Alert | 10 min read | 03.27.25
FinCEN Axes Corporate Transparency Act’s Reporting Obligations for U.S. Companies and U.S. Persons
Client Alert | 3 min read | 03.27.25
