Under Tecom, COFC Confirms Unallowability of Settlement Costs Arising from Discrimination Lawsuits
Client Alert | 1 min read | 04.26.18
In Bechtel National, Inc. v. United States, the Court of Federal Claims determined that the government properly disallowed litigation costs that Bechtel incurred to defend two discrimination lawsuits arising under Bechtel’s contract with the Department of Energy at Hanford. According to the court, Bechtel did not take issue with the CO’s determination that the plaintiffs had more than very little likelihood of success on the merits, which would render the costs unallowable under the decision in Geren v. Tecom, 566 F.3d 1037 (Fed. Cir. 2009). Instead, Bechtel argued that Tecom was not applicable because the contract at issue contained a clause stating that a contractor “‘shall be reimbursed…[f]or liabilities…to third persons.’” The COFC disagreed, finding that the same clause contained an exception making the allowability of those costs “dependent upon whether they are otherwise allowable under the terms of the contract, a determination to which Tecom speaks with respect to contracts that include non-discrimination clauses....” According to the court, the clause’s exception applied to the Bechtel situation because the contract contained a non-discrimination provision, FAR 52.222-26, which rendered “Bechtel’s costs of defending against and settling the discrimination complaints unallowable.” Bechtel argued that such an interpretation made the third-party liability clause “superfluous” and “internally inconsistent,” given that it would be “difficult to conceive of a circumstance in which a third-party legal action would not, if successful, also establish a breach of contract[,]” but the court rejected this argument, finding that the application of Tecom was limited and “does not necessarily extend to breaches of obligations other than the obligation not to engage in discrimination that is set forth in FAR 52.222-26.”
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Client Alert | 4 min read | 12.04.25
District Court Grants Preliminary Injunction Against Seller of Gray Market Snack Food Products
On November 12, 2025, Judge King in the U.S. District Court for the Western District of Washington granted in part Haldiram India Ltd.’s (“Plaintiff” or “Haldiram”) motion for a preliminary injunction against Punjab Trading, Inc. (“Defendant” or “Punjab Trading”), a seller alleged to be importing and distributing gray market snack food products not authorized for sale in the United States. The court found that Haldiram was likely to succeed on the merits of its trademark infringement claim because the products at issue, which were intended for sale in India, were materially different from the versions intended for sale in the U.S., and for this reason were not genuine products when sold in the U.S. Although the court narrowed certain overbroad provisions in the requested order, it ultimately enjoined Punjab Trading from importing, selling, or assisting others in selling the non-genuine Haldiram products in the U.S. market.
Client Alert | 21 min read | 12.04.25
Highlights: CMS’s Proposed Rule for Medicare Part C & D (CY 2027 NPRM)
Client Alert | 11 min read | 12.01.25



