No PRB Cost Adjustment For Segment Closings
Client Alert | 1 min read | 06.02.10
In related decisions filed on April 29, the Court of Federal Claims effectively precluded contractors from recovering any costs for unfunded post-retirement benefits (primarily retiree medical and life insurance) in connection with business segment closings, absent a specific contract provision promising to indemnify the contractor for the unfunded liability. In Raytheon v. U.S., the court held that benefits covered by so-called 401(h) subaccounts in the contractor's pension plan (a relatively uncommon situation) are not "pension benefits" and, therefore, are not subject to the segment-closing provisions of CAS 413; in Gen. Elec. Co. v. U.S., the court held that pay-as-you-go benefit plans covering retired employees and dependents (by far the more common situation) are not subject to the provisions of CAS 413 requiring "segment closing" adjustments for pension costs.
Insights
Client Alert | 5 min read | 06.01.26
California Court Upholds Insurer’s Duty to Defend After Covered Claim Is Dismissed
On April 30, 2026, the U.S. District Court for the Northern District of California issued a significant ruling in an insurance coverage dispute between a commercial general liability insurer and its policyholder. The decision addresses several critical issues in insurance law, including the scope and continuity of the duty to defend and the standard for insurer reimbursement of defense costs in mixed-claim actions. The court ruled largely in favor of the insured, SVO Building One, LLC ("SVO"), and the matter now heads toward settlement or trial on SVO's remaining counterclaims.
Client Alert | 2 min read | 05.29.26
California Assembly Passes AB 1776, Sending Major Antitrust Bill to the Senate
Client Alert | 5 min read | 05.29.26
Clover Insurance v. HHS: S.D. of Georgia Holds 20 Star Ratings Measures Unlawful
Client Alert | 3 min read | 05.29.26
