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Sub Can't Sue Govt. For Payment, Took Too Long To Seek Recovery

Wednesday, August 01, 2012 05:40 am


Payment--Contract Change

FloorPro, Inc. v. U.S., 2012 U.S. App. Lexis 10981 (May 31, 2012)

The U.S. Court of Appeals for the Federal Circuit has vacated an earlier ruling that held a subcontractor was a third-party beneficiary to a prime contract, with the right to sue.

The verdict in FloorPro, Inc. v. U.S., 2011 U.S. Ct. Fed. Cl. No. 09-651C (Apr. 6, 2011) (discussed at length in CCM, Vol.33, No.7, p.51, July 2011) concluded that a contract modification, through which the U.S. Navy agreed to pay both the prime contractor and the sub directly, made the s [...]

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