In 1983, the U.S. Department of Energy and Entergy Nuclear Indian Point 2, LLC (Consolidated Edison’s predecessor in interest) contracted to remove and dispose of spent nuclear fuel and high-level radioactive waste. The Government failed in its contractual obligation to dispose of spent nuclear fuel and therefore partially breached the agreement. Entergy Nuclear claimed damages of $37.4 million for a period from 2008 to 2013 for this partial breach.

Read more on Department of Energy Faces Full Spent Nuclear Fuel Damages…

In 2010, a class of landowners sued in the U.S. Court of Federal Claims alleging that CSX Transportation, Inc. and its predecessors-in-interest ran a railroad right-of-way through property they owned in Shelby County, Tennessee. The Plaintiffs sued in the CFC alleging that the government took their reversionary property interests in the railroad rights-of-way when the government approved the conversion of the rail line to a recreational trail under the railbanking provisions of the National Trails System of 1983.

Read more on First, Let’s Pay All the Lawyers…

Locked Up and Out of Luck

June 26, 2015

In 2008, Dallas Matthew Alston-Bullock signed a plea agreement to second-degree murder for which he was sentenced up to 270 months in prison. On June 4, 2015, Bullock sued pro se in the United States Court of Federal Claims, claiming that his attorney had tricked him into signing the plea agreement and that he was unjustly convicted and imprisoned. In his handwritten letter filed with the CFC as a complaint, he stated that he was seeking $400,000 in damages.

Read more on Locked Up and Out of Luck…

Read the full article →

The Parable of the Golden Parachute

June 22, 2015

In 2006, Anthony Piszel was hired to serve as the Chief Financial Office of the Federal Home Loan Mortgage Corporation (Freddie Mac).  Prior to joining Freddie Mac, Piszel accrued $8.1 million in unpaid compensation from his former employer. As an incentive to take the position at Freddie Mac and to forego his unpaid compensation , the Government promised to provide him with a lump sum cash payment and stock if he was terminated from his job without cause during the first four years of his employment.  During the midst of the economic turmoil in the financial industry, Freddie Mac was placed into a conservatorship and Piszel was terminated in 2008 without cause.  The Government paid him 19,735 of the 78,940 stock units he was promised, but refused to pay him the rest of the severance compensation he had been promised.

Read more on The Parable of the Golden Parachute…

Read the full article →

If I Had a Hammer

June 19, 2015

In 2006, Fort Howard Senior Housing Associates entered into an enhanced-use lease with the VA Medical Center in Baltimore County, Maryland. Under this lease, the Senior Housing Associates had the right to occupy the property for 65 years, with an option to extend the lease for an additional 10 years. In exchange, Senior Housing had to pay rent, construct a 10,000 square-foot community outpatient clinic, and 1,300 onsite-multi-use residences. After several years, the VA became concerned about the status of the project and began sending notices of default to Senior Housing. On August 17, 2009, the VA terminated the lease for default, claiming that Senior Housing did not timely commence construction, maintain and secure the property, or pay its share of the utility bills.

Read more on If I Had a Hammer…

Read the full article →

Advanced-Technology Car Companies Run Out of Gas

June 18, 2015

XP Vehicles, an advanced technology vehicle company, and Limnia, Inc., an advanced technology energy system company (collectively “XP”), joined forces to produce state-of-the art cars. Together, the companies applied for a $40 million loan under a federal program administered by the U.S. Department of Energy for this purpose. However, DOE denied their loan applications, and both companies sued in the U.S. Court of Federal Claims, alleging that DOE denied their applications in breach of the agency’s regulations, policies, and an implied-in-fact contract, which included an implied duty of good faith and fair dealing. The United States moved to dismiss their lawsuit under Rules 12(b)(1) (lack of subject matter jurisdiction) and 12(b)(6) (failure to state claim on which relief can be granted).

Read more on Advanced-Technology Car Companies Run Out of Gas…

Read the full article →