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Supreme Foodservice GmbH

April 27, 2017Judge Scott

Denied / Government PrevailedContract InterpretationAccord & Satisfaction / Release / Waiver

The Armed Services Board of Contract Appeals addressed appeals by Supreme Foodservice GmbH regarding claims totaling approximately $8.3 billion by the Defense Logistics Agency, which contended the contract was void due to fraud. The Board ultimately reaffirmed its previous decision denying the government's motion for summary judgment.

Material Facts

The contract involved the delivery of food, water, and other products to the U.S. military and DLA customers in Afghanistan.
DLA's major claim was that the contract was void ab initio due to fraud by Supreme at contract inception.
Supreme had a guilty plea in a criminal proceeding related to fraud issues concerning pricing under the contract.
DLA moved for summary judgment on its first material breach defense based on Supreme's guilty plea.
The Board found material facts in dispute and denied both DLA's motion for summary judgment and Supreme's motion to strike DLA's first material breach defense.

Parties

Appellant: Supreme Foodservice GmbH
Respondent Agency: Defense Logistics Agency
Contract Number: SPM300-05-D-3130

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