Accordingly, the Court should adopt theMikes express condition-of-payment requirement, which confines liability to cases of clear fraud.
This Comment argues that the U.S. Supreme Court should resolve the circuit split by recognizing the implied certification theory and adopting the express condition-of-payment requirement set forth by the Second Circuit in Mikes.
Barroso wrote: Still with regard to the reference in your letter to the last resort possibility to completely or partially cease gas deliveries in the event of further alleged violation of the conditions of payments by Ukraine, we would strongly urge you to refrain from such measures, which would create doubts about your willingness to be seen as a reliable supplier of gas to Europe.
Bob was not impressed by their argument that the bank could get the judgment set aside nor the request that there be a confidentiality clause as a condition of payment.
Hutcheson v. Blackstone Medical, Inc., imposes liability when a contractor submits a claim and fails to disclose its violation of a material contractual, statutory, or regulatory provision, regardless of whether the provision was an express condition of payment.
I would hold that where, as here, the condition of payment has been satisfied and a warranty deed is transferred and recorded, a direct and automatic reverter upon the attempt to alienate is unreasonable as a matter of law.
To make such a system effective, some experts believe that the federal government would need to mandate such reporting as a condition of payment through taxpayer-financed programs like Medicare.
Under the default rule developed by the Second Circuit in Mikes v. Straus, liability attaches only when a contractor submits a claim and fails to disclose its violation of a material contractual, statutory, or regulatory provision that the government has expressly identified as a condition of payment.
"Not every undisclosed violation of an express condition of payment automatically triggers liability," he wrote.
