Implications of Recent and Upcoming Supreme Court Decisions for Government Contractors
The Supreme Court has recently addressed, and will soon further clarify, the scope of liability facing government contractors. In The GEO Group, Inc. v. Menocal , the Court issued a unanimous decision limiting interlocutory appeals of the Yearsley defense. At the same time, contractors await the Court’s ruling in Hencely v. Fluor Corp ., which will address whether federal law preempts state tort claims against contractors operating in a military context. Together, these cases shape contractors’ litigation risk, strategy, and exposure. Yearsley Defense Not Immediately Appealable As discussed previously, GEO Group involved detainees who alleged that GEO’s work policies violated federal and state law. GEO argued that it was not liable under Yearsley v. W.A. Ross Construction Co . because ICE authorized and directed the challenged conduct. The district court rejected that defense, and the Tenth Circuit held that the ruling was not immed...