Novation Trap For The Unwary
Client Alert | 1 min read | 02.04.11
In Raytheon Co. v. U.S. (Jan. 26, 2011), the Court of Federal Claims held that a contractor's claim for the pension cost adjustment due under CAS 413 for pension plans with funding deficits at the time of a "segment closing" could be barred by the standard language required in novation agreements providing that the contractor "waives any claims and rights against the Government that it now has or may have in the future in connection with the [novated] contracts." Because the Government takes the position that its agreement to novate contracts is completely within the untrammeled discretion of the Government, the Government could effectively negate the requirements of CAS 413 if this decision is correct by refusing to novate contracts unless the contractor agrees to waive its rights to an adjustment under CAS 413.
Insights
Client Alert | 8 min read | 09.08.26
Saxon Woods Investments Limited v Costa [2026] UKSC 21: Good Faith in the Boardroom
The UK Supreme Court has unanimously dismissed the appeal of Mr Francesco Costa, former chairman of Spring Media Investments Limited, in the first Supreme Court judgment to consider the scope of the duty under section 172(1) of the Companies Act 2006. The foundational position is that good faith requires honest conduct as well as honest thinking. A director's genuine belief that they are acting in the company's best interests will not excuse covert or disloyal conduct in pursuit of that belief.
Client Alert | 2 min read | 09.08.26
IRS Takes Aim: Proposed Rule Threatens Tax-Exempt Status of Private Schools
Client Alert | 5 min read | 09.03.26
Client Alert | 6 min read | 09.03.26
FDA Seeks Input for Regulating GenAI-Powered Medical Devices
