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Material Misrepresentation Dooms Contract From the Get-Go

Client Alert | 1 min read | 02.07.19

In ABS Dev. Corp. (January 7, 2019), the ASBCA found a contract void ab initio because the contractor’s proposal contained a material misrepresentation about staffing. Although failure to perform in accordance with an incorporated proposal is generally only a breach, the Board noted that where a contractor obtains a contract through a material misrepresentation––with no intention of performing in accordance with the representation––the contract is void ab initio. Here, the Board found ABS’ contract void ab initio because: (1) ABS, to address contracting officer concerns regarding staffing approach in its proposal, represented that it would directly hire personnel to perform on-site work; (2) ABS did not have any intention to adhere to such representation; and (3) had ABS not made such representation, the contracting officer would not have awarded ABS the contract. Because no valid contract ever existed, ABS’ claim for additional compensation was denied and the Government's assessment of liquidated damages was likewise denied.

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Client Alert | 3 min read | 06.03.26

Important EU Court Judgment Clarifies Rules on Interest Due in Cartel Damages Cases

In a judgment that will have direct and immediate consequences, the Court of Justice of the European Union (CJEU) has clarified that for all competition damages actions brought after 26 December 2014, interest runs from the date on which the harm occurred. The ruling addressed two important questions: (1) whether national provisions implementing Article 3(2) of the EU Damages Directive — which requires interest to run from the date harm occurred —apply to cases in which the harm preceded the adoption of those provisions; and (2) how the date of harm should be determined in cartel cases involving the purchase of goods at inflated prices....

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