Federal Circuit Clarifies Implied Duty of Good Faith and Fair Dealing
Client Alert | less than 1 min read | 02.19.14
In an important decision clarifying the implied duty of good faith and fair dealing, the Federal Circuit in Metcalf Constr. Co. v. United States (Feb. 11, 2014) held that specifically targeted conduct is not required to prove a breach and rejected the government's assertion that violation of an express provision of the contract is a prerequisite to liability, while observing that the scope of the duty depends on the context of the particular contract and its "contemplated value." The court also vacated the judgment for the government on the ground that the contractor was not to bear the risk of error in the government's affirmative representations made in pre-bid documents.
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California Assembly Passes AB 1776, Sending Major Antitrust Bill to the Senate
California’s COMPETE Act (AB 1776) narrowly passed the California State Assembly by three votes on Wednesday and now moves to the California State Senate. The bill — introduced in March by Assembly Majority Leader Cecilia Aguiar-Curry — is modeled closely on draft legislation recommended by the California Law Revision Commission in September. AB 1776 would not only significantly expand potential liability for single-firm conduct and monopolization but, based on recent amendments, would also explicitly decouple California antitrust analysis from certain federal standards. Crowell & Moring is representing the California Chamber of Commerce (CalChamber) in monitoring, analyzing, and responding to AB 1776.
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