AEROSPACE & DEFENSE CASES
U.S. Fed. Circuit Court of Appeals, May 15, 2008
Huntleigh USA Corp. v. US, No. 2007-5118
In a company's action against the government alleging, inter alia, that the Aviation and Transportation Security Act's (ATSA) transfer of responsibility for passenger and baggage screening resulted in an unconstitutional taking of its property without just compensation, a judgment against plaintiff is affirmed where: 1) plaintiff could not claim a taking since the ATSA did not regulate plaintiff directly but merely "frustrated" plaintiff's business expectations by reducing the demand for plaintiff's services; and 2) plaintiff was not entitled to compensation under ATSA section 101(g)(2) since it gives the government the power to assume the contracts but does not require it to do so.
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