Common use of Third Party Disputes Or Breaches Clause in Contracts

Third Party Disputes Or Breaches. The GRANTEE agrees to pursue all legal rights available to it in the enforcement or defense of any third party contract, and U.S. DOT and the DEPARTMENT reserve the right to concur in any compromise or settlement of any third party contract claim involving the GRANTEE. The GRANTEE will notify U.S. DOT and the DEPARTMENT of any current or prospective major dispute pertaining to any third party contract. If the GRANTEE seeks to name the DEPARTMENT as a party to the litigation, the GRANTEE agrees to inform both U.S. DOT and the DEPARTMENT before doing so. The DEPARTMENT retains a right to a proportionate share of any proceeds derived from any third party recovery. Unless permitted otherwise by the DEPARTMENT, the GRANTEE will credit the Project Account with any liquidated damages recovered. Nothing herein is intended to nor shall it waive U.S. DOT’s, FTA’s or the DEPARTMENT’s immunity to suit.