For the second time in about as many years, the U.S. Supreme Court ruled in favor of the Hornes in a takings case that seemingly will not end. Last week the Supreme Court held that the federal raisin marketing program, which requires raisin growers to physically set aside a percentage of their crop under an antiquated U.S. Department of Agriculture program, is a physical taking requiring just compensation. (See [add date or name of] blog posting for a further description of this program.)

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In 2000, Nortel Network, Inc. entered into a supply contract with the General Services Administration of the United States. In 2008, under this same supply contract, Nortel entered into a sponsored-partner agreement with Tektel. In 2009, the District Court requested vendor quotes for a phone service maintenance project, which was awarded to Tektel. Under the purchase agreement, Tektel would provide the District Court with Nortel phone upgrade work and maintenance. Thereafter, Tektel reconfigured the Nortel phone system, and created custom telephone and software upgrades for the District Court.

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Department of Energy Faces Full Spent Nuclear Fuel Damages

June 30, 2015

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.

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First, Let’s Pay All the Lawyers

June 29, 2015

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.

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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.

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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.

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