CFC Rejects Taxes Clause as Basis for Recovering Environmental Remediation Costs
Client Alert | 1 min read | 01.25.13
On January 13, the Court of Federal Claims in Shell Oil Co. v. U.S. held (1) the government was not liable for CERCLA environmental cleanup costs under the "Taxes" clause in certain World War II-era contracts; and (2) even if the "Taxes" clause had provided for indemnification, any indemnification rights were not preserved after contract termination. The "Taxes" clause and the absence of a reservation of rights to pursue indemnification in Shell is in contrast with the explicit "hold harmless" clauses in the facilities contracts cases in which the contractor reserved its rights to pursue indemnification (Ford and DuPont) and indemnification clauses authorized under Public Law 85-804, which contain explicit post-contract termination provisions.
Insights
Client Alert | 1 min read | 06.02.25
Job Corps Centers: Widespread Contract Terminations due to Agency’s “Pause”
On May 29, 2025, the Department of Labor (DOL) announced that it will begin a “phased pause in operations at contractor-operated Job Corps centers nationwide.” The pause is anticipated to occur within a month—by June 30, 2025. To effectuate this pause, DOL has suspended operations at approximately one hundred contractor-operated Job Corps centers. DOL instructed centers to suspend program activities, transition students home, and implement other transition plans. According to DOL’s Frequently Asked Questions, the Department anticipates that students will transition to “state and local workforce partners” including American Job Centers and the Labor Exchange system in their home state.
Client Alert | 5 min read | 06.02.25
Client Alert | 3 min read | 06.02.25
Client Alert | 5 min read | 05.30.25
