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Firms Poised to Get More in Stealth Suit

May 15, 1997|From Bloomberg News

WASHINGTON — McDonnell Douglas Corp. and General Dynamics Corp. could reap an extra $127 million in their lawsuit against the U.S. Navy over cancellation of the A-12 stealth airplane project in 1991, according to court documents.

The companies already are in line to split about $1.5 billion from the government once U.S. Claims Court Judge Robert Hodges issues a final judgment in the case, probably this summer.

Hodges recently has presented the parties with a draft opinion that would allow the companies to recover additional money under two price adjustment clauses in their contract with the Navy, according to court documents.

That amount could be $127 million if the firms get all they sought in a March memorandum to Hodges.

In the latest twist to the six-year courthouse battle, the companies are seeking to recover a portion of costs they claim to have incurred above the target price for producing the attack planes.

The opinion, if issued in final form, would represent a switch for Hodges, who in previous decisions indicated that the two firms were limited by the target price.

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