Animus Unnecessary for Improper Termination
Apr.09.2013
In a decision that catalogued and continued the confusion in the Federal Circuit's case law concerning when a termination for convenience may be challenged as improper and, thus, give rise to breach damages, the CFC in Tigerswan, Inc. v. U.S. (Apr. 2, 2013) rebuffed the government's position that, to prevail, the contractor must always show a specific intent to harm the contractor. It then ruled that the contractor could not show a breach of good faith duties because the contract contained a termination clause, but then also ruled that actionable bad faith is shown if the government has engaged in improper self-dealing (which tracks the Restatement's definition of breach of good faith duties).
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