"National Security" Limits Judicial Review Of CICA Stay Override
Client Alert | less than 1 min read | 02.23.05
In Kropp Holdings, Inc. v. U.S. (Jan. 27, 2005), Judge Braden of the Court of Federal Claims held that, once legitimate interests of “national security” have been asserted and established to the court’s satisfaction, the court could stop review of a “best interests” CICA stay override, holding that national security makes it “not necessary” to go further. The Court also held that national security concerns and the context of a CICA stay override justify use of a more deferential standard of review of agency action than in the normal bid protest: whether the plaintiff demonstrated a clear error of judgment.
Insights
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Following the 10th Circuit's April 21, 2026, decision affirming the disallowance of Liberty Global’s $2.4 billion deduction under the codified economic substance doctrine, I.R.C. § 7701(o), Liberty Global filed a petition for panel rehearing or rehearing en banc on June 5, 2026. That petition has since drawn significant amicus support from various industry groups representing large taxpayers, as discussed below.
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Department of War Immediately Suspends CMMC Phase II Requirements, Launches 60-Day Reform Review
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