30Jun
Walking the Tightrope: Liquidation Agreement “Traps for the Unwary”
When crafting a liquidation or “pass-through” agreement for a subcontractor claim against the government, the key provision from the prime contractor’s perspective is a release from any liability for the subcontractor’s claim with the exception of amounts recovered from the government related to that claim. If the release language is too broad, however, the agreement may provide the government a legal defense to the pass-through claim known as the Severin doctrine. The Severin doctrine prohibits...
By:
Bradley Arant Boult Cummings LLP
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