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1983 to the extent necessary to calculate the Government's actual
losses for any of those years.
Because the Navy Department was Stencel's largest customer,
and since Stencel was one of only a few companies in the world
qualified to produce ejection seats for Navy Department aircraft,
the Government and Stencel both recognized the urgency of
reaching an agreement sufficient to permit the Navy Department to
lift Stencel's suspension.
In November 1985, Ms. Branda offered to settle the
Government's claims against Talley and Stencel for $3.6 million.
Ms. Branda arrived at the $3.6 million figure by assuming an
average of $300,000 in "singles" damages per year for the 6-year
period 1979 through 1984 for total "singles" damages of $1.8
million, and then doubling that amount. "Singles" damages is a
term of art under the FCA, which provides for an award of double
the Government's actual damages.
On or about December 9, 1985, Talley and Stencel countered
Ms. Branda's $3.6 million settlement offer by offering to settle
the Government's claims for $750,000. Talley and Stencel
calculated the Government's total damages for labor mischarging
for 1983 and 1984 at $191,899. In addition, although Talley and
Stencel denied liability for labor mischarging before 1983, their
settlement offer included amounts for alleged labor mischarging
in Stencel's production department from 1979 to 1984. Talley and
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