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 | 5 min read | 12.02.25
As we have reported previously, California has enacted a pair of climate-related reporting laws that apply to large entities doing business in California (SB 253 and SB 261, as modified by SB 219). This alert provides an update on only the most recent events; please see previous alerts for a broader overview of the laws’ requirements.
Client Alert | 11 min read | 12.01.25
Client Alert | 5 min read | 12.01.25
Client Alert | 6 min read | 11.26.25
From ‘Second’ to ‘First:’ Federal Circuit Tackles Obvious Claim Errors
