United States v. Bonnell Bonnell v. United States

This is an action under the Renegotiation Act of April 28, 1942, 56 Stat. 245 , 50 U.S.C.A.Appendix, § 1191, seeking recovery of alleged excessive profits on a war contract as determined by the Reconstruction Finance Corporation Price Adjustment Board, less applicable tax credits and withheld tax refunds-, with six percent interest. The -contract was made on April 24, 1942. Section 403(c) of the Act as originally enacted, which contained the authority to recover excessive profits provided : “This subsection shall be applicable to -all contracts and subcontracts hereafter made and to all contracts and subcontracts heretofore made, whether or not such contra-c-ts or subcontracts contain a renegotiation or recapture clause, provided that final payment pursuant to such contract or subcontract has not been made prior to the date of enactment of this Act.” The Renegotiation Act will be hereinafter referred to as the Act. The United States will be referred to as the Government, and the defendants below as the contractors.

The contractors moved to dismiss the complaint on the ground that the Act was unconstitutional insofar as it applied retroactively to prime war contracts made before…