Who Pays: Supreme Court Rejects “Blanket Preemption” and Limits Government Contractor Defense

On April 22, 2026, the Supreme Court issued a decision in Hencely holding that state-law tort claims against military contractors operating in combat zones are not automatically preempted by federal law when the contractor’s challenged conduct was neither ordered nor authorized by the government. Hencely v. Fluor Corp., No. 24-924 (US Apr. 22, 2026). This decision further erodes the government contractor defense and potentially exposes government contractors to additional tort liability when performing on the government’s behalf.

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Defense, government contracts, New Legislation, New Regulations

About Joe Martinez

Joseph G. Martinez’s practice focuses on all aspects of government contracts litigation and corporate counseling with an emphasis on bid protest litigation, contract and subcontract formation and pricing issues, and complex claims litigation. Joe is also a member of Dentons’ Political Law, Ethics and Disclosure team and counsels clients regarding federal, state and local election law, campaign finance, ethics matters, and assists government contractors in navigating the intersection of law, politics and public policy.

About Gale Monahan

Gale Monahan is a partner in the Firm’s Government Contracts practice where he focuses on government contracts counseling, litigation and internal and government investigations. Gale's counseling practice focuses primarily on cost and pricing, the Cost Accounting Standards (CAS), termination, business systems, domestic preference, and international government contracting issues.

About Natalie Seelig

Natalie Seelig is a member of the US Government Contracts practice and focuses on all aspects of government contracts counseling and litigation.