Government Cannot Renew Counterclaim Dismissed With Prejudice After Settlement Agreement; CBCA 4994, SBBI Inc. v. International Boundary and Water Commission

Appeal of the contracting officer’s final decision denying a claim for unexpected costs and delays under a construction contract is granted, where an agreement settling two previous claims under the same contract were narrowly presented and did not involve the same claims, and where the parties continued to negotiate a further settlement, indicating the government was aware the additional claims were not barred; and the government’s counterclaim for liquidated damages under the contract is denied, where the agreement settling the prior claims resulted in the dismissal with prejudice of the claims and counterclaims, despite the government’s contention that it had withdrawn its counterclaim prior to the dismissal.