CFC Rejects Taxes Clause as Basis for Recovering Environmental Remediation Costs
Client Alert | 1 min read | 01.25.13
On January 13, the Court of Federal Claims in Shell Oil Co. v. U.S. held (1) the government was not liable for CERCLA environmental cleanup costs under the "Taxes" clause in certain World War II-era contracts; and (2) even if the "Taxes" clause had provided for indemnification, any indemnification rights were not preserved after contract termination. The "Taxes" clause and the absence of a reservation of rights to pursue indemnification in Shell is in contrast with the explicit "hold harmless" clauses in the facilities contracts cases in which the contractor reserved its rights to pursue indemnification (Ford and DuPont) and indemnification clauses authorized under Public Law 85-804, which contain explicit post-contract termination provisions.
Insights
Client Alert | 2 min read | 04.29.25
President Trump Issues Executive Order Deprioritizing Disparate Impact Theory of Discrimination
On April 23, 2025, President Trump signed an executive order, Restoring Equality of Opportunity and Meritocracy, declaring it the policy of the United States “to eliminate the use of disparate-impact liability in all contexts to the maximum degree possible to avoid violating the constitution, Federal civil rights laws, and basic American ideals.” The order reasons that “disparate impact liability all but requires individuals and businesses to consider race and engage in racial balancing to avoid potentially crippling legal liability.”
Client Alert | 6 min read | 04.28.25
Client Alert | 3 min read | 04.28.25
Client Alert | 3 min read | 04.25.25
