Articles Posted in US Court of Appeals for the Fourth Circuit

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The Yearsley doctrine applies to claims arising under federal law. The Fourth Circuit affirmed the district court's grant of GDIT's motion to dismiss, for lack of subject matter jurisdiction, an action alleging that GDIT violated the Telephone Consumer Protection Act (TCPA). The court held that GDIT was immune from suit under the Yearsley doctrine, which immunizes government contractors from suit when the government authorized the contractor's actions and the government validly conferred that authorization. The court found nothing in Yearsley or its progeny that limited its application solely to state law liability. The court held that the district court did not err in treating Yearsley applicability as a jurisdictional bar to suit and granting GDIT's motion to dismiss. View "Cunningham v. General Dynamics Information Technology, Inc." on Justia Law

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In a contract dispute between BAE and Korea, BAE sought a declaratory judgment that it had not breached any contractual obligation to Korea and a permanent injunction barring Korea from prosecuting its suit against BAE in Korean courts. The Fourth Circuit affirmed the district court's grant of BAE's requested declaration, but refused to issue a permanent injunction. The court held that the BAE-Korea agreement's permissive forum selection clause provided no basis for dismissing this action; Korea was not immune from suit under the Foreign Sovereign Immunities Act; the Foreign Military Sales (FMS) structure shields a U.S. contractor, such as BAE, from liability; enforcement of the BAE-Korea agreement would undermine the control the United States retained in all FMS transactions over price; because the U.S. government retained control over price in an FMS transaction, a foreign state generally has no cause of action — against anyone — if the price demanded by the U.S. government increases over time; and the district court did not abuse its discretion in denying BAE's petition for a permanent anti-suit injunction. Accordingly, the court affirmed the judgment. View "BAE Systems Technology v. Republic of Korea's Defense Acquisition Program Admin." on Justia Law

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In a contract dispute between BAE and Korea, BAE sought a declaratory judgment that it had not breached any contractual obligation to Korea and a permanent injunction barring Korea from prosecuting its suit against BAE in Korean courts. The Fourth Circuit affirmed the district court's grant of BAE's requested declaration, but refused to issue a permanent injunction. The court held that the BAE-Korea agreement's permissive forum selection clause provided no basis for dismissing this action; Korea was not immune from suit under the Foreign Sovereign Immunities Act; the Foreign Military Sales (FMS) structure shields a U.S. contractor, such as BAE, from liability; enforcement of the BAE-Korea agreement would undermine the control the United States retained in all FMS transactions over price; because the U.S. government retained control over price in an FMS transaction, a foreign state generally has no cause of action — against anyone — if the price demanded by the U.S. government increases over time; and the district court did not abuse its discretion in denying BAE's petition for a permanent anti-suit injunction. Accordingly, the court affirmed the judgment. View "BAE Systems Technology v. Republic of Korea's Defense Acquisition Program Admin." on Justia Law

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The Fourth Circuit held that the first-to-file rule of the False Claim Act mandates dismissal of a relator's action brought while related actions were pending, even after the related actions have been dismissed and the relator's complaint has been amended, albeit without mention of the related actions. In this case, because the Carter Action violated the first-to-file rule in a manner not cured by subsequent developments, the action must be dismissed. Accordingly, the court affirmed the district court's judgments. View "US ex rel. Carter v. Halliburton Co." on Justia Law