Collateral Contracts Rule Explained
Client Alert | less than 1 min read | 12.30.05
In Mann v. U.S. (Dec. 7, 2005), the Court of Federal Claims rejected a broad reading of the rule that lost profits are not allowed under contracts collateral to the contract actually breached, explaining that when the lost profits directly relate to the subject of the contract they are recoverable, even if they would have required a transaction with a third party. In this breach of a lease agreement, assuming adequate proof, the contractor is able to recover the lost profits he would have made from releasing the property, as well as certain out-of-pocket costs to improve the property.
Insights
Client Alert | 2 min read | 04.16.26
In a significant decision for government contractors, on April 15, 2026, in Life Science Logistics, LLC v. United States, the U.S. Court of Appeals for the Federal Circuit held that bid protesters challenging an agency’s override of an automatic stay of contract performance under the Competition in Contracting Act (CICA) need not satisfy the demanding four-factor test traditionally required for preliminary injunctive relief. In so doing, the Federal Circuit clarified that CICA stay override challenges need only demonstrate that the override decision was arbitrary and capricious—nothing more.
Client Alert | 4 min read | 04.16.26
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