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"Any Degree of Fraud" Bars Contractor Claims

Oct.13.2014

In Laguna Constr. Co. (Oct. 7), the ASBCA denied a $2.9 million claim for unpaid invoices because two of Laguna's employees had pled guilty to accepting subcontractor kickbacks under some, but not all, of the task orders under appeal. The Board imputed the fraud to the company and, applying the doctrine of "antecedent breach," held that the contractor's material breach excused the government's subsequent failure to pay for the completed and invoiced work.


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Frederick (Rick) W. Claybrook Jr.
Partner – Washington, D.C.
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Email: rclaybrook@crowell.com
Skye Mathieson
Associate – Washington, D.C.
Phone: +1 202.624.2606
Email: smathieson@crowell.com