Judge Remands Navy Transport Contract Dispute To ASBCA

Law360, New York (June 2, 2011, 2:22 PM EDT) -- A Maryland federal judge on Tuesday remanded a contract dispute between Red River Holdings LLC and the U.S. Navy over the early termination of a $51 million contract, saying an appeals board applied a too-strict standard for Red River’s recoverable costs.

Red River, which had purchased and modified a Bahamian vessel to fulfill a 59-month contract to transport ammunition for the Navy, sought approximately $800,000 as compensation after the Navy canceled the contract two months early. The amount represented loan principal and interest, insurance, lost profits...
To view the full article, register now.