Everett Plywood Corp. v. United States

The issues presented in this breach of contract case are (1) whether, under the doctrines of frustration or sovereign acts, the government may cancel a timber contract because of anticipated environmental damage without being liable for breach damages, (2) if the government is liable what the appropriate measure of damages is, and (3) whether the Contract Disputes Act of 1978, 41 U.S.C. §§ 601-613 (Supp. II 1978) (Act), authorizes the award of interest. For the reasons discussed herein, we hold that the government is liable for damages resulting from a breach of the contract, and we set forth…