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Breach Of Good Faith Doesn't Require Malice

Client Alert | 1 min read | 04.03.06

The Court of Federal Claims in the unusual factual situation of Agredano v. U.S. (Mar. 27, 2006) took the opportunity to reinforce the growing body of decisional law that a party does not have to show subjective malice or intent to injure by a government employee to be able to recover for breach of good faith and fair dealing duties. In this case, Mexican nationals who bought a car seized by the Customs Service at a forfeiture sale "as is" and were then locked up for a year in Mexico when it was discovered at a traffic checkpoint that the upholstery was stuffed with marijuana stated a valid claim for breach of good faith duties to search the car and make sure it was "legal" before offering it for sale.

Insights

Client Alert | 4 min read | 03.25.26

NAIC Intensifies AI Regulatory Focus: What Health Insurance Payors Need to Know

The National Association of Insurance Commissioners (NAIC) is intensifying its oversight of how insurers use AI — and the pace of regulatory activity shows no signs of slowing. Over the past several months, the NAIC has published a formal Issue Brief staking out its position on federal AI legislation, launched a multistate AI Evaluation Tool pilot aimed at examining insurers’ AI governance programs, and continued to expand adoption of its AI Model Bulletin across state lines. These developments continue a trend towards enhancing regulation; the NAIC adopted AI Principles in 2020 and a Model Bulletin in 2023 clarifying that existing insurance laws apply to AI systems and establishing expectations for governance, documentation, testing, and third-party oversight. That Model Bulletin has now been adopted in approximately 24 states....