Profit Recoverable in Commercial Item Termination
Client Alert | less than 1 min read | 01.05.15
In SWR, Inc. (Dec. 15), the ASBCA ruled that the termination for convenience of a commercial item contract, before any services had been ordered, still entitled the contractor to "fair compensation" under a more expansive interpretation of "reasonable charges" than the board had previously endorsed, including start-up costs, travel expenses, wages, forfeited deposits, lease mitigation charges, settlement expenses, attorney fees, and other operating expenses. With one dissent, the board also held that contractors are entitled to a reasonable profit on all termination-related charges, despite the lack of express allowance for profit in the standard Commercial Items terms.
Insights
Client Alert | 10 min read | 07.01.25
Ninth Circuit Decision Underscores Increasing False Claims Act Risks to U.S. Importers
On June 23, 2025, the Ninth Circuit issued a long-awaited decision in Island Industries Inc. v. Sigma Corp. affirming a $26M False Claims Act (“FCA”) judgment against the defendant importer. Sigma had appealed the judgment after a jury found the company violated the FCA by failing to pay customs duties owed to U.S. Customs and Border Protection (“CBP”). The Ninth Circuit’s decision addresses an important jurisdictional issue and illustrates the significant financial exposure importers can face under the FCA at a time of increased tariffs and enforcement by the government.
Client Alert | 8 min read | 06.30.25
Client Alert | 3 min read | 06.30.25
Client Alert | 3 min read | 06.26.25
FDA Targets Gene Editing Clinical Trials in China and other “Hostile Countries”
