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U. MERCHANTS & MFRS. v. AIKEN COUNTY PUB. SER. AUTH.

No. 84-1752.

766 F.2d 151 (1985)

UNITED MERCHANTS AND MANUFACTURERS, INC. and Graniteville Company, Appellees, v. AIKEN COUNTY PUBLIC SERVICE AUTHORITY; The City of Aiken; City of North Augusta and County of Aiken, Appellants.

United States Court of Appeals, Fourth Circuit.

Decided July 1, 1985.

Attorney(s) appearing for the Case

Henry Summerall, Jr., Aiken, S.C. (James D. Bailey; Summerall & Bailey, P.A.; C. Wesley Smith, Aiken, S.C., Kelly F. Zier, North Augusta, S.C., on brief), for appellants.

Robert O. King, Greenville, S.C. (Lewis T. Smoak, R. Bryan Struble, Jr.; Ogletree, Deakins, Nash, Smoak & Stewart, Greenville, S.C., on brief) and Julian B. Salley, Jr., Aiken, S.C. (Henderson, Salley, Lynn, Farmer & Brown, Aiken, S.C., on brief), for appellees.

Before RUSSELL and CHAPMAN, Circuit Judges, and HAYNSWORTH, Senior Circuit Judge.

HAYNSWORTH, Senior Circuit Judge:

The question is the enforceability of a cost recovery provision inserted in a public works contract pursuant to a requirement of federal law after repeal of the federal requirement. We agree with the district court that the provision became unenforceable with the repeal of the federal statute.

I.

In January 1977 United Merchants and Manufacturers, Inc., Graniteville Company, the City of Aiken, South Carolina, and...

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