CBCA 8601

GRANTED IN PART: April 8, 2026 CBCA 8601 CAPITAL FM (PVT.) LTD, Appellant, v. AGENCY FOR GLOBAL MEDIA, Respondent. Kamran Jamil Khawaja, Country Manager of Capital FM (Pvt.) Ltd, Islamabad, Pakistan, appearing for Appellant. Anna K. Drake and Jennifer DeMaster, Office of General Counsel, Agency for Global Media, Washington, DC, counsel for Respondent. SULLIVAN, Board Judge. Capital FM (Pvt.) Ltd (Capital FM) appealed the deemed denial of its claim for costs following the termination for convenience of its contract with the Agency for Global Media (AGM or USAGM). Capital FM elected to proceed under the Board’s expedited procedure for small claims. Rule 52 (48 CFR 6101.52 (2024)).1 Capital FM asserts that the termination of its contract constitutes an abuse of discretion and that it is entitled to costs totaling 1 Decisions issued under the Board’s small claims procedure are final and conclusive and shall not be set aside except in cases of fraud affecting the Board’s proceedings. Rule 52(b); see Palmer v. Barram, 184 F.3d 1373 (Fed. Cir. 1999); 41 U.S.C. § 7106(b) (2018). This decision has no value as precedent. CBCA 8601 2 $55,200, as a result of the termination. We grant the appeal in part, finding that Capital FM has proved that its severance costs resulted from the breach. Capital FM’s allegations regarding the abuse of discretion are without merit. The other damages that Capital FM seeks are not recoverable. Background I. Contract and Its Terms In September 2024, the parties executed a contract that established Capital FM as a licensed distributor of programming content created by AGM. Exhibit 1 at 6.2 The term of the contract was one year, with an option for an additional year.3 Id. at 4. The contract provided that Capital FM would be paid $7200 per month. Id. The contract set forth the times at which the AGM-provided content would be broadcast. Id. at 10. The contract permitted Capital FM to transmit advertising and announcements before or after the AGM-provided content. Id. at 8. The contract incorporated by reference a Federal Acquisition Regulation (FAR) clause titled Contract Terms and Conditions—Commercial Products and Commercial Services, Exhibit 1 at 1, which permitted AGM to terminate the contract for “its sole convenience.” FAR 52.212-4(l) (48 CFR 52.212-4(l) (2024)). The contract also contained a termination provision that allowed AGM to terminate the contract with thirty days’ notice: This agreement shall be in place for a total of 2 year(s), unless terminated earlier by either Party by written notice received by the other Party at least thirty (30) days before this Agreement’s expiration date. . . . If this agreement is terminated before its completion date, USAGM will be liable only for the payments under ARTICLE VII of this Agreement for services rendered before the effective termination date. Exhibit 1 at 8. Article VII provided for monthly payments of $7200. Id. at 4, 7. The contract provided that, in the event of a dispute, neither party would be liable for indirect or consequential damages: 2 “Exhibit X at X” refers to the exhibits in the appeal file. AGM submitted numbered exhibits, and Capital FM submitted lettered exhibits. 3 Capital FM, in its briefing, insists that the contract term was two years. Pursuant to the terms of the contract, the term would be two years “if all option periods are exercised.” Exhibit 1 at 8. CBCA 8601 3 In no event shall either Party be liable to the other Party for any incidental, indirect, consequential, or special damages, loss of good will or business profits, work stoppage, or for exemplary or punitive damages arising out of or relating to this Agreement, regardless of whether such Party had been advised of the possibility of such damages. Id. at 8. The contract also provided that AGM “shall not be responsible for any obligations, responsibilities, or liabilities not specifically listed herein.” Id. at 7. II. Events Leading to the Dispute On March 15, 2025, AGM stopped providing content to Capital FM. On March 17 and 20, Capital FM received cancellation notices from two firms that had contracted for advertising during the time of the AGM broadcasts.