Hercules, Inc. v. United States, 516 U.S. 417, 2 (1996)

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418

HERCULES, INC. v. UNITED STATES

Syllabus

(c) Although the Government required petitioner Wm. T. Thompson Co. to produce Agent Orange under authority of the Defense Production Act of 1950 (DPA) and threat of civil and criminal fines, imposed detailed specifications, had superior knowledge of the hazards, and, to a measurable extent, seized Thompson's processing facilities, these conditions do not give rise to an implied-in-fact agreement to indemnify Thompson for losses to third parties. The Anti-Deficiency Act, which bars federal employees from entering into contracts for future payment of money in advance of, or in excess of, an existing appropriation, 31 U. S. C. § 1341, must be viewed as strong evidence that a contracting officer would not have provided, in fact, the contractual indemnification Thompson claims. And, the detailed statutes and regulations that enable such contracting officers to provide indemnity agreements to certain contractors show that implied agreements to indemnify should not be readily inferred. Also contrary to Thompson's argument, the DPA provision specifying that "[n]o person shall be held liable for damages or penalties for any act or failure to act resulting directly or indirectly from compliance with a[n] . . . order issued pursuant to this Act," 50 U. S. C. App. § 2157, does not reveal an intent to indemnify contractors. Likewise, since Thompson claims a breach of warranty by its customer rather than its seller and supplier, it misplaces its reliance on Ryan Stevedoring Co. v. Pan-Atlantic S. S. Corp., 350 U. S. 124. Finally, petitioners' equitable appeal to "simple fairness" is considerably weakened by the fact that the injured veterans could not recover from the Government, see Feres v. United States, 340 U. S. 135, and, in any event, may not be entertained by this Court, see United States v. Minnesota Mut. Investment Co., 271 U. S. 212, 217-218. Pp. 426-430.

24 F. 3d 188, affirmed.

Rehnquist, C. J., delivered the opinion of the Court, in which Scalia, Kennedy, Souter, Thomas, and Ginsburg, JJ., joined. Breyer, J., filed a dissenting opinion, in which O'Connor, J., joined, post, p. 431. Stevens, J., took no part in the consideration or decision of the case.

Carter G. Phillips argued the cause for petitioners. With him on the briefs were James S. Turner, Alan Dumoff, Jerold Oshinsky, Gregory W. Homer, Rhonda D. Orin, and Walter S. Rowland.

Edward C. DuMont argued the cause for the United States. With him on the brief were Solicitor General Days, Assistant Attorney General Hunger, Deputy Solicitor Gen-

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