Court upholds Navy cancellation of A-12 aircraft

Court Alerts

Boeing Co. and General Dynamics Corp. must pay the government $2.8 billion to settle a nearly two-decade dispute over the cancellation of a Navy contract for a stealth aircraft, the U.S. Court of Appeals for the Federal Circuit ruled Tuesday.


The Navy was justified in 1991 when it opted to terminate the $4 billion contract with McDonnell Douglas and General Dynamics to build a stealth aircraft, the court said.

Chicago-based Boeing, which acquired McDonnell Douglas in 1997, said it will appeal the ruling.

The aircraft project was ended for being substantially over budget and behind schedule, according to the Justice Department. Both contractors were under a fixed-price contract to develop the A-12, a carrier-based attack aircraft.

But because of serious technical difficulties, the Pentagon refused to approve additional funding, leading the Navy to cancel the program.

In a 29-page opinion, the court explained the contractor's performance history showed that "the government was justifiably insecure about the contract's timely completion."

Both contractors are now required to repay the government more than $1.35 billion, plus interest of $1.45 billion.

Boeing had questioned whether the government owed money to both companies for work in progress when the contract was terminated.

In a statement, Boeing called for an immediate appeal of the court's ruling. Falls Church, Va.-based General Dynamics issued a statement saying it disagrees with the ruling and continues to believe that the government's default termination was not justified. The company intends to seek a re-hearing in the Federal Circuit.

Related listings

  • Court says no exclusive cable rights in apartments

    Court says no exclusive cable rights in apartments

    Court Alerts 05/27/2009

    Cable companies cannot have exclusive rights to provide service in apartment buildings that they wire, a federal appeals court ruled Tuesday. The decision from the Court of Appeals in Washington upholds a Federal Communications Commission ruling that...

  • Suspects can be interrogated without lawyer

    Suspects can be interrogated without lawyer

    Court Alerts 05/26/2009

    The Supreme Court has overturned a long-standing ruling that stops police from initiating questions unless a defendant's lawyer is present, a move that will make it easier for prosecutors to interrogate suspects. The high court, in a 5-4 ruling, over...

  • Guilty Plea for Man Behind Creative E-Trade Scam

    Guilty Plea for Man Behind Creative E-Trade Scam

    Court Alerts 05/22/2009

    A California man has pleaded guilty to opening tens of thousands of bogus online brokerage accounts and then pocketing tiny test deposits made by companies like E-Trade Financial and Charles Schwab. Michael Largent, 23, of Plumas Lake, Calif. pleaded...

Grounds for Divorce in Ohio - Sylkatis Law, LLC

A divorce in Ohio is filed when there is typically “fault” by one of the parties and party not at “fault” seeks to end the marriage. A court in Ohio may grant a divorce for the following reasons:
• Willful absence of the adverse party for one year
• Adultery
• Extreme cruelty
• Fraudulent contract
• Any gross neglect of duty
• Habitual drunkenness
• Imprisonment in a correctional institution at the time of filing the complaint
• Procurement of a divorce outside this state by the other party

Additionally, there are two “no-fault” basis for which a court may grant a divorce:
• When the parties have, without interruption for one year, lived separate and apart without cohabitation
• Incompatibility, unless denied by either party

However, whether or not the the court grants the divorce for “fault” or not, in Ohio the party not at “fault” will not get a bigger slice of the marital property.

Business News

St Peters, MO Professional License Attorney Attorney John Lynch has been the go-to choice for many professionals facing administrative sanction. >> read