5th Circ. Denies Saudi Arabia's Contract Damages Bid

Law360, New York (June 10, 2011, 6:53 PM EDT) -- The Fifth Circuit on Thursday upheld a ruling that Saudi Arabia cannot recover damages even though Lear Siegler Services Inc. breached a contract for repairing the government's military aircraft by hiring a subcontractor that inflated prices.

A three-judge panel agreed with a Texas federal court that Lear had violated its contract with the Saudi government, but that it would not have to pay damages because the company had provided highly persuasive testimony that Saudi Arabia had not been overcharged. In order to cover for a breach...
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