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"Piggy-Backer" Falls at GAO

Client Alert | less than 1 min read | 06.01.05

In VSE Corp; Johnson Controls World Svs. Inc. (May 23, 2005 http://www.gao.gov/decisions/bidpro/2904523.pdf), GAO held that Johnson Controls could not circumvent GAO's strict timeliness rules by "piggy-backing" an untimely protest of a sole source award by the Department of Homeland Security onto a timely protest previously filed by VSE. Nonetheless, GAO found the sole source bridge construction contract was improper because DHS failed to prepare a required written justification and approval, and it expressly held that Johnson Controls, as well as VSE, must be given an opportunity to demonstrate an ability to satisfy DHS' requirement.

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Client Alert | 4 min read | 08.13.26

Supreme Court Confirms Contractual Loss of Bargain Without Repudiatory Breach

English law has long treated the choice between terminating for repudiatory breach and exercising a contractual termination right as consequential. Under the Financings[1] causation principle, a party exercising a contractual right for a non-repudiatory breach could recover losses accrued to the date of termination — but nothing more. Loss of bargain was out of reach unless the breach went to the root of the contract. A practical workaround, confirmed in Lombard,[2] was to designate the relevant obligation as a condition, elevating any breach to repudiatory status, but that device carries significant strategic risk if the termination is later found to have been wrongful....