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Limitation of Funds Clause Puts Bite in Termination Recovery

Client Alert | less than 1 min read | 12.30.13

In The Boeing Co. (Dec. 3, 2013), the Armed Services Board of Contract Appeals served a reminder of the risks Limitation of Funds (LOF) clauses pose for contractors, who normally must assure that funding on their contracts will be adequate not only for work underway but also for recovery of prime and subcontract costs in the event of a termination for convenience. The Board refused to allow recovery of costs incurred in excess of the funded amounts, holding that, if the contractor incurred costs in excess of the allotted funding, "it was a volunteer and did so for its own account."


Insights

Client Alert | 13 min read | 10.30.25

Federal and State Regulators Target AI Chatbots and Intimate Imagery

In the first few years following the public launch of generative artificial intelligence (AI) in the autumn of 2022, litigation related to AI focused primarily on claims of copyright infringement. Suits revolved around allegations that the data on which AI models train, and/or the output they produce, infringe upon the intellectual property rights of others. (While some of these cases have settled or reached preliminary judgments, many remain ongoing.)...