Supreme Court of the United States
Mobil Oil Exploration & Producing Southeast, Inc. v. United States
June 26, 2000530 U.S. 604
Summary
The Court held that the Government breached lease contracts with oil companies by failing to approve exploration plans within the statutory 30-day period due to the Outer Banks Protection Act (OBPA), which imposed new requirements not incorporated into the contracts. Because the breach substantially impaired the contract's value and was not waived, the companies were entitled to restitution of their $156 million bonus payments. Justice Stevens dissented, agreeing a breach occurred but arguing damages for delay, not full restitution, were the appropriate remedy.