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APPLIED COMPANIES v. U.S.

No. 97-5085.

144 F.3d 1470 (1998)

APPLIED COMPANIES, Plaintiff-Appellant, v. UNITED STATES, Defendant-Appellee

United States Court of Appeals, Federal Circuit.

May 27, 1998.

Attorney(s) appearing for the Case

Peter B. Jones, Jones & Donovan, of Irvine, California, argued for the plaintiff-appellant.

Harold D. Lester, Jr., Attorney, Commercial Litigation Branch, Civil Division, Department of Justice, of Washington, DC, argued, for defendant-appellee. With him on the brief were Frank W. Hunger, Assistant Attorney General, David M. Cohen, Director, and Kirk T. Manhardt, Assistant Director. Of counsel on the brief was Major Daniel Key, Army Litigation Division, Department of the Army, of Arlington, Virginia.

Before PLAGER, LOURIE, and BRYSON, Circuit Judges.

BRYSON, Circuit Judge.

This case concerns the law of setoffs. The dispute began when the government made two overpayments to Applied Companies, a government contractor. Applied agreed that it was obligated to repay the money, but instead of repaying it directly, Applied sought to set off the debt against obligations the government owed to it on other contracts. The government rejected Applied's proposals and instead discharged Applied's debt by setting it off against...

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