National Defense Authorization Act Requires Third-Party Legal Action for Indemnity Claim

摘要

In a January 31, 2008 decision, the U.S. Court of Federal Claims ruled that an insurance company has no indemnity claim against the United States under Section 330 of the National Defense Authorization Act for costs incurred in an environmental remedial action at a former military base (American International Specialty Lines Insurance Company v. United States, No. 05-1020 C [Fed. Cl. Jan. 31, 2008]). Section 330 covers hazardous contamination on former military bases that have been closed under the 1990 Defense Base Closure and Realignment Act. The court noted that the claim could stand if the insurance company had been the subject of a third-party legal action. However, taking a narrow view of the type of "claim" that must be asserted for a party to receive government indemnification, the court found that a letter issued by the California EPA did not constitute a third-party legal action. This federal appeals court ruling was contrary to the findings in two other prior cases.