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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.

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Client Alert | 7 min read | 08.17.26

Delayed Notification of Cyberattacks May Trigger HIPAA Breach Notification Rule

After identifying a ransomware attack in 2021, OSF Healthcare System waited until its forensic investigation had concluded before notifying the U.S. Department of Health and Human Services (HHS) — and the affected individuals — of the breach. The 110-day delay (nearly double the 60-calendar-day notification deadline mandated by the HIPAA Breach Notification Rule) triggered an investigation from HHS’s Office for Civil Rights (OCR). The health system’s investigation determined that protected health information (PHI) had been stolen....