Supreme Court of the United States

S&E Contractors, Inc. v. United States

April 24, 1972406 U.S. 1

Summary

The Supreme Court held that, absent fraud or bad faith, the Atomic Energy Commission’s decision under the contract disputes clause is final and conclusive and the United States may not seek judicial review of that decision; the Court reversed the Court of Claims. Justice Brennan and Justice Blackmun filed dissenting and concurring opinions respectively.

Holding

  • May the United States, through the Department of Justice, challenge an AEC disputes‑clause decision favorable to the contractor on the grounds that it is not supported by substantial evidence or is erroneous as a matter of law?. No; the United States may not assert those defenses and may not seek judicial review of the AEC’s decision absent fraud or bad faith.
  • Does the Wunderlich Act permit the United States to seek judicial review of a contract disputes‑clause decision absent fraud or bad faith?. No; the Act does not give the United States that right.
  • Does 41 U.S.C. §322 prohibit a contract provision that makes a question of law decision of an administrative official final?. Yes; such a provision is invalid under §322.
  • Is an AEC decision under a disputes clause binding on the United States absent fraud or bad faith?. Yes; the decision is final and conclusive for the Government as well as the contractor.

Docket 70-88

Cited authorities

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