In a recent decision by the US Court of Appeals for the Federal Circuit, the Army Corps of Engineers emerged victorious in a legal dispute concerning attorneys’ fees with CKY Inc. The central issue revolved around a prior ruling, where a federal contract dispute board had mandated that the Corps pay legal fees to CKY following a partial legal victory over construction payment issues.
The Armed Services Board of Contract Appeals had initially granted attorneys’ fees to CKY after the contractor succeeded in a segment of their challenge against the Army Corps. Specifically, CKY had contested the amount owed by the Corps for construction work. However, the Federal Circuit found that the board’s decision was flawed. They noted that the board only evaluated whether the Corps’ legal stance was substantially justified concerning the specific recoveries CKY secured. This limited assessment led to the remanding of the case for a comprehensive fees inquiry. For further information, you can read the full article on Bloomberg Law.