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Volume 4 - Number 02 | January 9, 2006

EDITOR'S NOTES
The late Oliver Wendell Holmes, Jr., said, “Men must turn square corners when they deal with the Government.” This week’s cases take those square corners to heart, delivering narrow opinions in all four cases. In our first case, a contractor misses the deadline to file a proposed termination settlement. Creative arguments do not net it a win with the Armed Services Board of Contract Appeals. Same goes for a contractor who tried to win three days worth of prejudgment interest from an appeals court after settling its dispute in mediation. Economic loss arguments and tort claims don’t go together for the justices of Ohio’s high court. And, South Carolina’s high court takes a narrow view in determining an “occurrence” in a CGL policy.

CONTRACT TERMINATION COSTS FILED TOO LATE
Time runs out for a government contractor that missed a deadline to file its proposed termination settlement after the ASBCA converted its default termination to a termination of convenience.

ARBITRATION AWARDS DON’T MERIT PREJUDGMENT INTEREST
Arbitration awards don’t qualify as liquidated awards for purposes of obtaining prejudgment interest, according to a Washington appeals court. Rather, they receive the same treatment as jury verdicts.

ECONOMIC LOSS RULE BARS TORT ACTION IN CONTRACT BREACH SUIT
By David S. Stern and Kelley C. Hauser
Economic loss is not a sufficient argument to win a tort claim against a subcontractor. Unless third-party privileges exist between the owner and subcontractor, the owner cannot prevail.

MULTIPLE SALES OF DEFECTIVE GOODS TOTAL ONE “OCCURRENCE” IN CGL POLICY
The South Carolina high court narrowly interprets a CGL policy to conclude that multiple sales of defective stucco constitute one occurrence in a class action suit.

CORRECTION
CCA’s Dec. 26, 2005, issue contained an inaccurate synopsis of our third story. The synopsis should have read, “A New Jersey state mediator faulted a park designer and two engineering firms for not following the owner’s instructions, which led to an inadequate preliminary site investigation that failed to detect substantial rock deposits for a park project.” CCA apologizes for the error.