ILNews

Defense firm appeals $277M verdict for Humvee maker

Dave Stafford
October 21, 2013
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A defense contractor is appealing an Indiana judge’s order that it pay $277 million to the Mishawaka-based manufacturer of Army Humvee military vehicles. The contractor overcharged for armor kits to retrofit the vehicles during the bloodiest days of the Iraq war, the judge ruled.

United Kingdom-based BAE Systems Inc. and its subsidiary firms last month filed notice with the Indiana Court of Appeals that it would appeal rulings by now-retired St. Joseph Superior Judge Michael P. Scopelitis, who awarded damages to AM General LLC.

Attorneys from Washington, D.C.-based Covington & Burling LLP, an American Lawyer A-List firm, last week applied for temporary admission to represent BAE. No attorneys have appeared on the appellate docket for AM General, which had its own high-powered Washington counsel in the trial court from the firm of Williams & Connolly.

Scopelitis in April issued a series of rulings including a 194-page order that BAE Systems pay AM General judgments totaling $277,939,519 for breach of contract and violations of most-favored customer clauses. 

The notice of appeal indicates it follows denial of a motion to correct error in the trial court. No further proceedings have been scheduled in the case and the trial court transcript has not yet been completed, according to case filings.

Scopelitis’ findings painted a picture of rampant overcharges from BAE and its predecessor companies that AM General passed on to the Army, even as AM General sought to determine true costs. Armor Holdings, which developed the retrofit armor kits, was purchased by BAE, and Armor Holdings’ executives received multi-million-dollar payments and retention bonuses, Scopelitis noted.

But Scopelitis wrote that “BAE was concerned … that disclosing its costs data would reveal excessive profits,” including markups on armor kits of 36 to more than 44 percent, well above the 5 percent to 15 percent profit the Army typically deems reasonable for tank and vehicle purchases.

BAE noted its intent to appeal after the ruling and disagreed with the findings in what it called an “extremely complex contract dispute.”

“BAE Systems is firmly committed to the principles of fair contracting and providing both value and performance in support of its many government and commercial customers,” the company said after Scopelitis’ ruling.

 

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  1. I will continue to pray that God keeps giving you the strength and courage to keep fighting for what is right and just so you are aware, you are an inspiration to those that are feeling weak and helpless as they are trying to figure out why evil keeps winning. God Bless.....

  2. Some are above the law in Indiana. Some lined up with Lodges have controlled power in the state since the 1920s when the Klan ruled Indiana. Consider the comments at this post and note the international h.q. in Indianapolis. http://www.theindianalawyer.com/human-trafficking-rising-in-indiana/PARAMS/article/42468. Brave journalists need to take this child torturing, above the law and antimarriage cult on just like The Globe courageously took on Cardinal Law. Are there any brave Hoosier journalists?

  3. I am nearing 66 years old..... I have no interest in contacting anyone. All I need to have is a nationality....a REAL Birthday...... the place U was born...... my soul will never be at peace. I have lived my life without identity.... if anyone can help me please contact me.

  4. This is the dissent discussed in the comment below. See comments on that story for an amazing discussion of likely judicial corruption of some kind, the rejection of the rule of law at the very least. http://www.theindianalawyer.com/justices-deny-transfer-to-child-custody-case/PARAMS/article/42774#comment

  5. That means much to me, thank you. My own communion, to which I came in my 30's from a protestant evangelical background, refuses to so affirm me, the Bishop's courtiers all saying, when it matters, that they defer to the state, and trust that the state would not be wrong as to me. (LIttle did I know that is the most common modernist catholic position on the state -- at least when the state acts consistent with the philosophy of the democrat party). I asked my RCC pastor to stand with me before the Examiners after they demanded that I disavow God's law on the record .... he refused, saying the Bishop would not allow it. I filed all of my file in the open in federal court so the Bishop's men could see what had been done ... they refused to look. (But the 7th Cir and federal judge Theresa Springmann gave me the honor of admission after so reading, even though ISC had denied me, rendering me a very rare bird). Such affirmation from a fellow believer as you have done here has been rare for me, and that dearth of solidarity, and the economic pain visited upon my wife and five children, have been the hardest part of the struggle. They did indeed banish me, for life, and so, in substance did the the Diocese, which treated me like a pariah, but thanks to this ezine ... and this is simply amazing to me .... because of this ezine I am not silenced. This ezine allowing us to speak to the corruption that the former chief "justice" left behind, yet embedded in his systems when he retired ... the openness to discuss that corruption (like that revealed in the recent whistleblowing dissent by courageous Justice David and fresh breath of air Chief Justice Rush,) is a great example of the First Amendment at work. I will not be silenced as long as this tree falling in the wood can be heard. The Hoosier Judiciary has deep seated problems, generational corruption, ideological corruption. Many cases demonstrate this. It must be spotlighted. The corrupted system has no hold on me now, none. I have survived their best shots. It is now my time to not be silent. To the Glory of God, and for the good of man's law. (It almost always works that way as to the true law, as I explained the bar examiners -- who refused to follow even their own statutory law and violated core organic law when banishing me for life -- actually revealing themselves to be lawless.)

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