Dunn & Black, P.S. v. United States

O’SCANNLAIN, Circuit Judge:

We must decide whether a law firm can bring an action against the United States to recover attorney’s fees from monies that its client was awarded as a result of a settlement with the Federal Highway Administration, but never received because the Internal Revenue Service requested that payment be withheld to offset unpaid tax liabilities.

I

The United States, through the Western Federal Lands Highway Division of the Federal Highway Administration (“FHWA”), contracted with Environmental Reclamation, Inc. (“ERI”) to work on the Warren Profile Gap Road Project…