Never Ending Story

By John Liang / June 3, 2009 at 5:00 AM

For an attorney, it's the gift that keeps on giving.

A U.S. appeals court this week affirmed an earlier decision by the U.S. Court of Federal Claims that had sustained the government's default termination of the A-12 aircraft contract to which General Dynamics and McDonnell Douglas -- now owned by Boeing -- were parties with the Navy.

But this latest decision doesn't mean it's over, according to at least one of the contractors. Not by a long shot.

In a statement, GD says it "disagrees with this most recent ruling and continues to believe that the government's default termination was not justified. The company also believes that the ruling provides significant grounds for appeal, and intends to seek a re-hearing in the Federal Circuit."

The A-12 Avenger II program was intended to be a carrier-based stealth fighter replacement for the A-6 Intruder used by the Navy and Marine Corps, but the program was canceled in 1991 due to high costs and technical problems.

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