Sixth Circuit Rejects DOJ's "Fairyland" Damages Calculation and Awards Actual Damages Based on Benefit of the Bargain
Client Alert | 1 min read | 02.12.16
In U.S. ex rel. Wall v. Circle C Constr., LLC, (Feb. 4, 2016), the Sixth Circuit rejected the government's "creative" accounting in an FCA case based on violations of the Davis-Bacon Act, vacating a treble damages award of $763,000 where the defendant's subcontractor underpaid its employees for electrical work at numerous Army warehouses by a total of $9,900, and remanding with instructions to award only $14,748 (after applying a settlement payment by the subcontractor). "Actual damages by definition are damages grounded in reality," the court reasoned in rejecting the notion that all of the subcontractor's electrical work was "tainted" or rendered worthless by the underpayments, particularly where the harm was easily calculated and there was no dispute as to the work performed given that "the government turns on the lights every day."
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Access to Public Domain Documents Pilot: Practice Direction 51ZH
The Pilot codifies the position at common law, set out by Lady Hale in Cape Intermediate Holdings Ltd v Dring [2019] UKSC 38, which permits the public the right of access to documents placed before a court and referenced in a public hearing[4]. This Pilot will apply to cases heard in the Commercial Court, the London Circuit Commercial Court (King’s Bench Division), and the Financial List (Commercial Court and Chancery Division)[5].
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