ATK says no arbitration in HK Army ‘Punisher’ contract breach suit
By Jared Morgan
A U.S. Army acquisitions representative looks through the scope of the XM25 shoulder-fired 25mm airburst grenade system, dubbed “the Punisher.” (Photo: Defense Review)
Aerospace and defense contractor Orbital ATK on Thursday opposed a request from gun maker Heckler & Koch to dismiss a breach of contract suit filed in by the former, who argued the gunmaker violated the terms of a $35 million supply agreement.
HK filed the request in a Minnesota court last month, holding up a “teaming agreement,” which the two parties signed concurring to settle any dispute privately through arbitration. ATK argued the dispute in question was over a multi-million dollar subcontract that is separate from the teaming agreement, which does not have an arbitration clause, according to court documents.
Further, ATK argues, the teaming agreement’s arbitration clause “specifically exclude[es] Subcontract Disputes,” according to court documents.
The dispute in question is over HK’s failure to fulfill its agreed contract to supply the U.S. Army with a shoulder-fired 25mm airburst grenade system dubbed “the Punisher.”
ATK claimed HK prematurely pulled out of the $35 million agreement to supply the “XM25 Counter-Defilade Target Engagement System,” which can read the distance between the operator and an enemy in a fortified position, according to