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Beware The Cooperative Agreement

Client Alert | less than 1 min read | 04.21.08

In Rick's Mushroom Service, Inc. (Apr. 2, 2008), the Federal Circuit held that a contractor who had a cooperative cost sharing agreement for mushroom waste remediation was out of luck when it followed defective government specifications and had to pay third parties close to $1 million for environmental violations. The Federal Circuit denied Rick's claims for indemnification, holding there was no Contract Disputes Act jurisdiction and that the Spearin doctrine, which provides that the government breaches an implied warranty when it supplies a contractor with defective specifications, was inapplicable because there was no procurement contract and because the doctrine does not extend to third-party claims.

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Client Alert | 3 min read | 10.07.25

Blocking the Blocked Income Rules? Loper Bright’s influence over the Eighth Circuit’s 3M decision.

On October 1, 2025, the Eighth Circuit decided 3M Co. v. Commissioner in the taxpayer’s favor, based on its application of Loper Bright. The question presented in the case was whether the IRS had the authority to reallocate royalty income to a U.S. parent company that its foreign subsidiary was prohibited from paying under foreign law. The court held that the best interpretation of the governing statute did not permit the IRS’s reallocation....