Friday, January 2, 2009

Sovereign acts doctrine precludes delay damages

The Federal Circuit rejected a building contractor's request for delay damages caused by the government's barring access to the site following 9/11.

The contractor was constructing an Army Ranger regimental headquarters facility in Fort Benning, Ga., when the 9/11 attacks occurred. Because the Ranger commander found that the contractor's employees and subcontractors were in a unique position to view the comings and goings of Ranger personnel, who were in preparation for deployment to Afghanistan, the commander barred the contractor's access to the worksite for 43 days.

The contractor sought delay damages, but the ASBCA and Federal Circuit both found that the Army's exclusion of the contractor constituted a sovereign act relating to the government's warmaking powers, thus barring delay damages.

The case is Conner Bros. Construction v. Geren.

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