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Fraud Or Indiscretion? It Depends Who You Are

Client Alert | 1 min read | 07.08.09

In the previously reported case of Daewoo Eng'g and Constr. Co. v. U.S. (Fed. Cir. 2009), a contractor inflating its claim as a "negotiating ploy" committed "fraud" and was subject to substantial fines and forfeitures, but in the recent case of Bell BCI Co. v. U.S. (Fed. Cir. June 25, 2009), the government's assessment of liquidated damages to create "negotiating leverage" to counter the contractor's changes claims received only passing mention from the Court. Bell BCI also provides a caution about releases included with bilateral modifications - releasing "any and all liability for further equitable adjustment attributable to the modification" waived not only claims for direct costs of the changed work, but also claims for delay and disruption occasioned by the changed work, including in any "cumulative changes" claims.

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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....

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