United States v. Acme Process Equipment Co., 385 U.S. 138 (1966)

United States v. Acme Process Equipment Co.

No. 86

Argued November 9, 1966
Decided December 5, 1966
385 U.S. 138

CERTIORARI TO THE UNITED STATES COURT OF CLAIMS

Syllabus

Respondent sued the Government in the Court of Claims for damages for breach of contract to manufacture rifles. The United States asserted as a defense that it canceled the contract because three of respondent’s key employees had accepted compensation for awarding subcontracts in violation of the Anti-Kickback Act. The Court of Claims found that the kickbacks had been paid, and that this was the basis for the cancellation, but construed the Act as not authorizing such action.

Held: The Act, which clearly expresses a policy hostile to kickbacks, authorized the United States to cancel this contract. Pp. 142-148.