U.S. Court of Appeals for the Federal Circuit

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Docket Number



Case Updates

En banc review denied

October 02, 2009

The Federal Circuit declined to review en banc the decision in this case.

U.S. Chamber files amicus brief in recovery of pre-trial settlement costs case

July 13, 2009

NCLC urged the full Federal Circuit to review en banc a decision by a three-judge panel that held that the costs of settling a sexual harassment claim are unallowable unless the contracting officer determines that there was very little likelihood that the plaintiff would succeed on the merits. In this case, the Army sued Tecom for including its legal settlement fees incurred in a sexual harassment suit in its request for reimbursement on a housing maintenance contract.

In its brief, NCLC argued that the plain language governing federal contract reimbursement rules allows contractors to be reimbursed for costs incurred in the settlement of private lawsuits. The panel’s decision penalizes government contractors who make prudent business decisions to settle lawsuits, and will encourage more litigation and increase the costs of defending lawsuits, NCLC warned.

Case Documents