Oil Cos. Denied Pricing Relief On Govt. Contracts

Law360, New York (September 21, 2007, 12:00 AM EDT) -- An appellate court has ruled that there was no breach of contract by the U.S. government when it included an economic price adjustment clause in its military fuel contracts with energy companies including ConocoPhillips Co.

In a decision issued Friday, the U.S. Court of Appeals for the Federal Circuit found that the clause in question was not unlawful, and therefore upheld the ruling of the lower court, the U.S. Court of Federal Claims, against ConocoPhillips and La Gloria Oil & Gas Co.

“Because the plaintiffs have...
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