Hercules, Inc. v. United States, 516 U.S. 417, 5 (1996)

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Cite as: 516 U. S. 417 (1996)

Opinion of the Court

Petitioners want the United States to reimburse them for the costs of defending and settling this litigation. They attempted to recover first in District Court under tort theories of contribution and noncontractual indemnification. Having failed there,2 they each sued the Government in the United States Claims Court, invoking jurisdiction under 28 U. S. C. § 1491, and raising various claims sounding in contract.3 On

the Government's motions, the Claims Court granted summary judgment against petitioners and dismissed both complaints. Hercules, Inc. v. United States, 25 Cl. Ct. 616 (1992); Wm. T. Thompson Co. v. United States, 26 Cl. Ct. 17 (1992).

The two cases were consolidated for appeal and a divided panel of the Court of Appeals for the Federal Circuit affirmed. 24 F. 3d 188 (1994). The court held that petitioners' claim of implied warranty of specifications failed because petitioners could not prove causation between the alleged breach and the damages. The court explained that, had petitioners pursued the class-action litigation to completion, the Government contractor defense would have barred the imposition of tort liability against them. The Government contractor defense, which many courts recognized before the Agent Orange settlement, but which this Court did not con-Product Liability Litigation, 818 F. 2d 187, 189 (1987), cert. denied sub nom. Krupkin v. Dow Chemical Co., 487 U. S. 1234 (1988).

2 The District Court dismissed the claims, In re "Agent Orange" Product Liability Litigation, supra, and the Second Circuit affirmed. The appeals court found first that Stencel Aero Engineering Corp. v. United States, 431 U. S. 666 (1977), precluded such recovery and second that "well-established principles of tort law" would not recognize contribution and indemnity where the underlying claims that settled "were without merit." In re "Agent Orange" Product Liability Litigation, supra, at 207.

3 Thompson also raised in its amended complaint a claim under the Takings Clause of the Fifth Amendment, but subsequently abandoned that claim while still in the Claims Court. Wm. T. Thompson Co. v. United States, 26 Cl. Ct. 17, 22, n. 6 (1992).

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