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Collateral Contracts Rule Explained

Client Alert | less than 1 min read | 12.30.05

In Mann v. U.S. (Dec. 7, 2005), the Court of Federal Claims rejected a broad reading of the rule that lost profits are not allowed under contracts collateral to the contract actually breached, explaining that when the lost profits directly relate to the subject of the contract they are recoverable, even if they would have required a transaction with a third party. In this breach of a lease agreement, assuming adequate proof, the contractor is able to recover the lost profits he would have made from releasing the property, as well as certain out-of-pocket costs to improve the property.

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Client Alert | 7 min read | 08.19.26

CMS’s Final Rule Bans Federal Medicaid Funding for Youth Gender-Affirming Care

On August 13, 2026, the Centers for Medicare and Medicaid Services (CMS) published its final rule banning the use of federal funds — through Medicaid and the Children’s Health Insurance Program (CHIP) — to pay for gender-affirming care for children and youth. The final rule takes effect October 13, 2026 (“Prohibition on Federal Medicaid and Children's Health Insurance Program Funding for Sex-Rejecting Procedures Furnished to Children”). While CMS finalized several key elements of its late-2025 proposed rule (Client Alert December 24, 2025), the proposed Medicare hospital Condition of Participation rule remains in proposed form....