US Retaliates In Tax Dispute With Prison Contractor

Law360, New York (November 9, 2010, 6:12 PM EST) -- The U.S. has hit back in a lawsuit brought by Flintco Inc. over a $94 million prison construction contract, arguing that Flintco is solely responsible for $1.8 million in local and state taxes associated with the project.

The U.S. said that Flintco's breach of contract claims contradict the "unambiguous" terms of the agreement as well as federal guidelines, in a motion for judgment on the pleadings filed Monday in the U.S. Court of Federal Claims.

Flintco was contracted in 2003 to build a medium-security, 1,152-bed correctional...
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