DoD Implements Franken Amendment For Non-Commercial Contracts
Client Alert | 1 min read | 03.04.10
On February 17, DOD issued a class deviation implementing the prohibitions of the "Franken Amendment" to the 2010 Defense Appropriations Act restricting the use of arbitration clauses in employment contracts and will consider comments received within two weeks of publication date in the formulation of an interim rule incorporating the clause into the DFARS (http://www.acq.osd.mil/dpap/policy/policyvault/USA000476-10-DPAP.pdf). Under the new DFARS clause, 252.222-7999, which is only applicable to new non-commercial contracts or orders in excess of $1 million that utilize funds appropriated by the FY10 Act, contractors agree (1) not to enter into any agreement with any of its employees that require, as a condition of employment, that the employee agree to resolve through arbitration certain types of employment disputes; (2) not to enforce such clauses in existing contracts; and (3) for contracts awarded after June 17, 2010, to require covered subcontractors to comply with these requirements.
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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.
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