United States Federal Circuit

In a suit by a subcontractor and third party beneficiary to a contract between the U.S. and a debtor-primary contractor, the district court's holding that the government cannot setoff payments owed to the subcontractor with debts owed by prime contractor on other unrelated contracts is affirmed where the government, in order to rightfully claim a setoff, must have a valid claim against the party subject to the setoff, and no such claim exists in relation to the subcontractor.

Appellate Information

• Decided 08/02/2007
• Published 08/02/2007

Judges

Court

• United States Federal Circuit

Counsel