L-3 Applied Technologies Wins in Fourth Circuit

4th Circ. Says Contractor Must Face $80M Bid-Rigging Suit
– Law360

Law360 covered Manatt’s representation of L-3 Applied Technologies in a victory in the Court of Appeals for the Fourth Circuit. Ben Chew, a partner in the firm’s litigation practice, led a team that convinced the Fourth Circuit judges that the lower court had improperly dismissed L-3’s claims.

Now an Air Force contractor must answer in Virginia federal court allegations that it orchestrated an $80 million bid-rigging scheme to cut a subcontractor out of ongoing military site testing for electromagnetic pulse vulnerabilities. L-3 claims that the contractor colluded with L-3 competitor Jaxon Engineering & Maintenance Inc. to steer work long completed by L-3 on the project to Jaxon, amounting to tortious interference with L-3’s business expectancy and statutory business conspiracy under Virginia law.

The lower court had dismissed the case because L-3 was not named in a subcontract agreement between the two parties, but the Fourth Circuit remanded the case to the district court, ruling that L-3’s claim for damages did not stem from the contract, but instead alleged a violation of fiduciary duty to L-3 and unlawful conspiracy with Jaxon.

In addition to Chew, the team included partner Nigel Wilkinson, and associates Rory Adams and Josh Drian.

Read the article here