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Don't Want a Setoff? Better Say It

Jul.13.2010

In Global Ship Sys., Inc. v Dept. of Homeland Sec'y (CBCA June 25, 2010), the board held that a settlement payment owed by the government could be offset against a debt owed by the contractor on a separate contract, even though the settlement agreement expressly required the CO to "request" that the payment be made to Global's designated bank account. More explicit language is required to overcome the government's general right of offset.
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Frederick (Rick) W. Claybrook Jr.
Partner – Washington, D.C.
Phone: +1 202.624.2695
Email: rclaybrook@crowell.com
Brian Tully McLaughlin
Partner – Washington, D.C.
Phone: +1 202.624.2628
Email: bmclaughlin@crowell.com