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Intentional Low Bid Is Not A False Claim

Client Alert | 1 min read | 02.26.04

In U.S. ex rel. Bettis v. Odebrecht Contractors of Cal. (Jan. 28, 2004), the D.C. federal district court granted summary judgment in the contractor's favor, rejecting numerous False Claims Act allegations, including, most notably, the relator’s theory that the contractor had fraudulently induced the government to enter into a construction contract by intentionally underbidding for the project, while allegedly planning to submit false changes claims during performance. While expressly recognizing that false estimates could be the basis of an actionable false claim, the court ruled that the mere knowing submission of an unreasonably low bid (at least in the absence of any subsequent illegitimate request for adjustment) did not, by itself, cause the government to pay out funds to which the contractor was not entitled.

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Client Alert | 5 min read | 06.01.26

California Court Upholds Insurer’s Duty to Defend After Covered Claim Is Dismissed

On April 30, 2026, the U.S. District Court for the Northern District of California issued a significant ruling in an insurance coverage dispute between a commercial general liability insurer and its policyholder. The decision addresses several critical issues in insurance law, including the scope and continuity of the duty to defend and the standard for insurer reimbursement of defense costs in mixed-claim actions. The court ruled largely in favor of the insured, SVO Building One, LLC ("SVO"), and the matter now heads toward settlement or trial on SVO's remaining counterclaims....