On June 16, 2016, the U.S. Supreme Court ruled in the matter of Universal Health Services, Inc. v. United States ex rel. Escobar, 136 S. Ct. 1989 (2016), changing the legal landscape for False Claims Act qui tam claims concerning the implied false certification theory of liability. This article will discuss the Escobar holding and examine relevant considerations for contractors in light of this ruling.
Continue Reading US Supreme Court False Claims Act Decision in Escobar Has Significant Implications for Contractors
Alert to Contractors – California Court of Appeals (2d App. Dist.) Rules Subcontractor Price in Proposal Containing Material Conditions Rejected By Contractor Not Enforceable Notwithstanding Contractor Reliance
Flintco Pacific, Inc. v. TEC Management Consultants, Inc., 2016 Cal. App. LEXIS 594 (Cal. App. 2d Dist. June 21, 2016)
There was an important California decision published on July 19, 2016 (decided June 21, 2016) regarding damages due to reliance on a subcontractor bid of which all General Contractors should be aware. A general contractor can usually recover damages if a subcontractor does not honor its bid price; which price the general has relied upon in submitting its bid to the owner. The Court of Appeals has set forth significant limitations on a general contractor’s recovery for damages usually founded under the theory of promissory estoppel.