When nations enter a major war, production halts in that country. Companies are not allowed to produce anything but military contracts for their home country.

Normally, the game would breach the contract when war hits. However, when I did this in the past outsourced contracts, players complained. As it is now, the contracts are suspended. Purchased outsourced contracts do not breach because of user requests. It's too much of a pain in the rear, according to users, restarting the contracts after the war ends. They will resume when the war ends unless the manufacturer is bankrupt.

You can not sue them because most large contracts will stipulate limitations caused by warfare or acts of God. Every other contract in the game will breach without penalty when wars shutdown production.

As far as notifications are concerned, perhaps I could work in a memo via the feature bounty system when I overhaul the outsourcing system to make it less exploitative. Until then your notice is the Newspaper. (Or if you had a branch/factory in one of these war cities, the action memo you would have gotten.)

a simple "halted (war)" as the status, instead of "active" would make it more obvious.

I added a "Restricted (Conflict)" order status for the outsourcing management screens. This change will be in the next update. Thanks again!