Prime contractor TAS Group brought a suit under the Federal Tort Claims Act against the US Marshall Service (USMS) on behalf of its subcontractor, CSI for damages to a CSI aircraft allegedly caused by USMS pilot negligence. The government claimed it was not liable because under the plain language of the contract clause the government is liable only for damages to the prime contractor’s property.  In rejecting the government’s argument, the board noted that while the contract uses the term “contractor” when setting forth the requirements of the contract, both the government and TAS understood that CSI, as subcontractor, would be fulfilling the work of TAS in certain key elements of the contract (e.g. providing and maintaining aircraft). Because it found the contract does not distinguish between the prime contractor and subcontractor the board ruled “the term ’subcontractor’ is subsumed within the term ‘contractor’” (TAS Group Inc. v US Dept of Justice, CBCA No 52).

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