Court upholds Navy cancellation of A-12 aircraft
Court Alerts
Boeing Co. and General Dynamics Corp. must pay the government $2.8 billion to settle a nearly two-decade dispute over the cancellation of a Navy contract for a stealth aircraft, the U.S. Court of Appeals for the Federal Circuit ruled Tuesday.
The Navy was justified in 1991 when it opted to terminate the $4 billion contract with McDonnell Douglas and General Dynamics to build a stealth aircraft, the court said.
Chicago-based Boeing, which acquired McDonnell Douglas in 1997, said it will appeal the ruling.
The aircraft project was ended for being substantially over budget and behind schedule, according to the Justice Department. Both contractors were under a fixed-price contract to develop the A-12, a carrier-based attack aircraft.
But because of serious technical difficulties, the Pentagon refused to approve additional funding, leading the Navy to cancel the program.
In a 29-page opinion, the court explained the contractor's performance history showed that "the government was justifiably insecure about the contract's timely completion."
Both contractors are now required to repay the government more than $1.35 billion, plus interest of $1.45 billion.
Boeing had questioned whether the government owed money to both companies for work in progress when the contract was terminated.
In a statement, Boeing called for an immediate appeal of the court's ruling. Falls Church, Va.-based General Dynamics issued a statement saying it disagrees with the ruling and continues to believe that the government's default termination was not justified. The company intends to seek a re-hearing in the Federal Circuit.
Related listings
-
Court says no exclusive cable rights in apartments
Court Alerts 05/27/2009Cable companies cannot have exclusive rights to provide service in apartment buildings that they wire, a federal appeals court ruled Tuesday. The decision from the Court of Appeals in Washington upholds a Federal Communications Commission ruling that...
-
Suspects can be interrogated without lawyer
Court Alerts 05/26/2009The Supreme Court has overturned a long-standing ruling that stops police from initiating questions unless a defendant's lawyer is present, a move that will make it easier for prosecutors to interrogate suspects. The high court, in a 5-4 ruling, over...
-
Guilty Plea for Man Behind Creative E-Trade Scam
Court Alerts 05/22/2009A California man has pleaded guilty to opening tens of thousands of bogus online brokerage accounts and then pocketing tiny test deposits made by companies like E-Trade Financial and Charles Schwab. Michael Largent, 23, of Plumas Lake, Calif. pleaded...
New York Commercial Litigation Law Firm - Woods Lonergan PLLC
Founded in 1993 by Managing Partner James F. Woods, Woods Lonergan PLLC has built a strong reputation as a resourceful and industrious firm that provides clients with clear, concise, and straightforward answers to their most challenging legal issues. Partner Lawrence R. Lonergan, who joined the firm in 2008, has been a friend and colleague to Mr. Woods for over 40 years and shares the same business philosophy. Woods Lonergan PLLC’s collective experience and expertise enables the firm to expeditiously and effectively analyze the increasing challenges clients face in an evolving business and legal world, in many instances, avoiding unnecessary time and expense to our clients. Our mission is simple: provide cutting-edge expertise and sound advice in select areas of the law for corporate and business clients. We thrive on providing each client with personalized attention, forceful representation, and a collaborative team effort that embraces collective knowledge.