1. Home
  2. |Insights
  3. |US Liable for Environmental Remediation Costs Under Contract Clauses

US Liable for Environmental Remediation Costs Under Contract Clauses

Client Alert | 1 min read | 11.04.11

On October 31, the Court of Federal Claims in Exxon Mobil Corp. v. U.S. held that the government was liable for environmental cleanup costs because it had breached the “Taxes” clause in three World War II-era contracts under which the government had agreed to pay “any new or additional . . . charges” required by federal, state, or local law “by reason of the production, manufacture, sale or delivery” of aviation gasoline.  Exxon continues the trend of recovery of environmental remediation costs under government contracts and is consistent with ongoing efforts to recover environmental remediation costs and toxic tort litigation defense costs under Public Law 85-804 indemnification provisions in Cold War-era contracts being conducted for clients by C&M.

Insights

Client Alert | 4 min read | 09.15.26

GAO Indicates Reasonable Conflict of Interest Investigation Must Include Inquiry of Involved Firm

The U.S. Government Accountability Office’s (GAO) recent decision in Viderity Inc.—Costs, B-424422.5, Sept. 1, 2026, offers useful insight into what constitutes a legally sufficient conflict of interest investigation. The decision arose in an unusual procedural posture: Viderity initially protested, alleging that an agency evaluator had a personal conflict of interest. After the agency took corrective action, Viderity filed a cost entitlement claim requesting that GAO direct the agency to reimburse Viderity’s protest costs. In evaluating that claim, GAO assessed whether Viderity’s underlying protest ground was “clearly meritorious.”...