1. Home
  2. |Insights
  3. |Board Rejects Claim Based on Certain Fiscal Law Violations

Board Rejects Claim Based on Certain Fiscal Law Violations

Client Alert | 1 min read | 06.12.17

In Parsons Government Services, Inc. (ASBCA No. 60663, May 3, 2017), the Board dismissed Parsons’ $21 million claim because both contractual allegations turned on fiscal law provisions that did not entitle Parsons to relief. First, Parsons argued that the contract was void ab initio, entitling Parsons to quantum meruit, because “the government should have awarded the contract as a construction contract appropriating MILCON funds [pursuant to 10 U.S.C. §§ 2801 et seq.] instead of a supply and services contract using O&M funds.” Second, Parsons argued that the government “violated the implied duty of good faith and fair dealing by depriving Parsons of its reasonable expectations” of the necessary Congressional oversight and more stringent terms consistent with a MILCON-funded contract….” The Board rejected both arguments under Federal Circuit precedent, finding that the statutory MILCON provision underlying Parsons’ claim did not provide a private right of action for contractors to sue because the primary intended beneficiary of the statute was the government. 

Insights

Client Alert | 5 min read | 06.01.26

California Court Upholds Insurer’s Duty to Defend After Covered Claim Is Dismissed

On April 30, 2026, the U.S. District Court for the Northern District of California issued a significant ruling in an insurance coverage dispute between a commercial general liability insurer and its policyholder. The decision addresses several critical issues in insurance law, including the scope and continuity of the duty to defend and the standard for insurer reimbursement of defense costs in mixed-claim actions. The court ruled largely in favor of the insured, SVO Building One, LLC ("SVO"), and the matter now heads toward settlement or trial on SVO's remaining counterclaims....