United States Court of Appeals for the Fourth Circuit Holds Recovery on Contractor’s Claim for Wrongful Termination Limited by Provisions of Termination for Convenience Clause; Contractor’s Suit Dismissed Because Claim Was Subject to Contractually Prescribed Disputes Procedures

Hancock Electronics Corp. v. Washington Metropolitan Area Transit Authority, 81 F.3d 451 (4th Cir. 1996).

In the spring of 1994, the Washington Metropolitan Area Transit Authority (“WMATA”) awarded Hancock Electronics Corporation (“Hancock”) a contract to provide replacement braking systems for approximately 300 rail cars. The contract required Hancock to design, manufacture and install the braking systems. The contract further required Hancock to demonstrate its contract performance to WMATA and provide certain technical data about the braking systems.

Because it apparently did not possess the ability to monitor the testing of the brake systems’ software, WMATA subcontracted the testing function to a third party. In addition, as part of the testing process, WMATA requested Hancock to provide certain technical documentation, including the brake systems’ software. WMATA sought Hancock’s permission to provide the technical data to the third party responsible for testing, who had agreed to enter into a lifetime nondisclosure agreement. Hancock refused. Continue reading “United States Court of Appeals for the Fourth Circuit Holds Recovery on Contractor’s Claim for Wrongful Termination Limited by Provisions of Termination for Convenience Clause; Contractor’s Suit Dismissed Because Claim Was Subject to Contractually Prescribed Disputes Procedures”