Supreme Court Realigns Government Contractor Defense
Government contractors are familiar with the “government contractor defense” that can limit liability for work performed under a federal contract. The defense is often discussed through two classic Supreme Court cases: (1) Yearsley , sometimes described as “derivative sovereign immunity,” and (2) Boyle , which recognized federal preemption of certain state-law tort claims. While powerful, neither is a blank check. The Supreme Court has now clarified how these doctrines apply, while signaling a narrower focus in general. Merely having a federal contract, even in a combat zone, may not be enough to shield you from liability. Clear contractual instruction and compliance with those instructions will be critical to contractors going forward. The case is Hencely v. Fluor Corp. , decided April 22, 2026. Let’s get into it. A grisly case. By the time a case hits the Supreme Court, it has concentrated down to one or a few very high-level legal issues. Yet, the facts matter, and ...