Muhtesem Company

February 7, 2012Judge Grant

Denied / Government PrevailedQuantum / DamagesAccord & Satisfaction / Release / Waiver

Muhtesem Company appealed for damages due to the government's late payment on a contract to build a school in Iraq, claiming $149,000. The Board granted the government's motion for partial summary judgment, denying all claims.

Material Facts

Muhtesem was awarded a firm fixed-priced contract to build a school in Iraq.
Muhtesem billed for four progress payments and completed the contract, which was accepted by the government.
The government paid the final installment approximately nine months after it was invoiced due to administrative errors.
Muhtesem obtained ten commercial loans totaling approximately $356,000 before submitting its last invoice.
A subcontractor's criminal complaint against Muhtesem led to the jailing of its president, allegedly damaging the company's reputation.
Muhtesem claimed it was prevented from submitting offers on other projects due to non-payment of debts.
The government denied most of Muhtesem's claim for damages, granting only a small interest penalty.

Parties

Appellant: Muhtesem Company
Respondent Agency: Department of the Army
Contract Number: Contract No. W91GFB-07-C-1011

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