When Does a Contract Release Release a Claim? Classic Contract Tongue Twister
A recent decision in Perry Bartsch Jr., Constr. Co. v. Dept. of the Int., CBCA 4865, 5071 (December 8, 2016) helps contractors understand the scope and contours of a release of claims in a contract, reports Covington & Burling LLP in an article published in the firm’s Inside Government Contracts blog.
case offers important guidance about how to draft a release in an effective and narrow way, and the types of factors that the CBCA will consider when interpreting a release. Bartsch discusses the issue of whether an apparent global release of claims, contained in just one of many contract modifications, can extinguish all potential claims against the government.
The authors describe the case in detail and conclude with three points that contractors can consider to help ensure they are entering into a release that reflects their intention.
