Fed. Circ. Says Gov't Right To Deny Payment For Bias Suits

Law360 (July 16, 2019, 5:08 PM EDT) -- The Federal Circuit on Tuesday upheld a Court of Federal Claims ruling siding with the government in its decision not to reimburse a contractor for the $500,000 it paid defending against two former employees’ sexual and racial discrimination claims.

A three-judge panel ruled that Bechtel National Inc.’s defense costs aren't allowed under the contract, which the U.S. Department of Energy awarded to Bechtel in 2000 to design, build and run a nuclear waste treatment plant at the Hanford nuclear waste site in Washington.

The panel said Bechtel could only be reimbursed if it showed that the former employees had very little...

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