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ASBCA Reconsiders CAS 418 Definition Of "Homogeneous Cost Pools"

Client Alert | 1 min read | 03.06.07

In a decision published on February 26, 2007, the Armed Services Board of Contract Appeals granted Appellant's motion for reconsideration of the widely criticized decision in AM General LLC, ASBCA Nos. 53610, 54741, 06-1 BCA ¶ 33,190, in which the Board had granted summary judgment to the Government, finding that an overhead cost pool that included some capital facilities used in production of the commercial HUMMER but was allocated to all HUMMER production did not comply with the homogeneity requirements of CAS 418 because those assets did not directly benefit production of the military version of the HUMMER. After considering the additional arguments of the contractor and of the National Defense Industrial Association as amicus curiae (represented by Crowell & Moring), the Board found that the evidence about the "homogeneity" of activities in the pool and the base at issue was insufficient to demonstrate a violation of CAS 418 and that the Government had failed even to address materiality ("a crucial test for determining homogeneity"), and for these reasons vacated its prior decision.

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Client Alert | 3 min read | 06.03.26

Important EU Court Judgment Clarifies Rules on Interest Due in Cartel Damages Cases

In a judgment that will have direct and immediate consequences, the Court of Justice of the European Union (CJEU) has clarified that for all competition damages actions brought after 26 December 2014, interest runs from the date on which the harm occurred. The ruling addressed two important questions: (1) whether national provisions implementing Article 3(2) of the EU Damages Directive — which requires interest to run from the date harm occurred —apply to cases in which the harm preceded the adoption of those provisions; and (2) how the date of harm should be determined in cartel cases involving the purchase of goods at inflated prices....

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