Case: United States v. Cotter Corp., N.S.L., No. 25-1127
Lower Court: Federal Circuit
Docketed: 2026-03-26
Status: Pending
Question Presented: Whether a downstream purchaser's liability for mishandling nuclear material that the purchaser obtained for private benefit, but that was originally produced more than a decade earlier under a government contract with another party, is subject to indemnification by the United States under the original government contract because it qualifies as "public liability arising out of or in connection with the contractual activity" under 42 U.S.C. 2210(d).
On March 23, 2026, D. John Sauer filed a petition for certiorari asking the Court to review the Federal Circuit’s decision in this indemnification dispute. The government sought and received two extensions before filing, suggesting the petition required careful deliberation.
The underlying dispute concerns nuclear material originally produced under a government contract. Cotter Corporation later acquired that material for private commercial use and allegedly mishandled it, generating public liability claims. The question is whether Cotter’s liability qualifies as “public liability arising out of or in connection with the contractual activity” under 42 U.S.C. 2210(d), entitling Cotter to indemnification under the original government contract even though Cotter was not a party to it.
The government argues the Federal Circuit read the phrase “contractual activity” too broadly, effectively extending indemnification obligations to parties who obtained nuclear material years after the relevant contract concluded and who used it for purely private purposes. If the Court grants certiorari, it will need to determine how attenuated the connection between a downstream actor’s conduct and the original government contract can be before indemnification no longer applies.
The practical stakes are real. A broad reading of Section 2210(d) could expose the federal treasury to indemnification claims arising from nuclear material that passed through multiple private hands long after government contracts expired. Whether the Court views this as a question warranting national uniformity will likely determine whether certiorari is granted.