Common use of Remedies & Disputes Clause in Contracts

Remedies & Disputes. 43 Section 12.01 Understanding and expectations.............................................................................................43 Section 12.02 Tailored remedies. ..................................................................................................................43 Section 12.03 Termination by HHSC. ............................................................................................................45 Section 12.04 Termination by HMO...............................................................................................................47 Section 12.05 Termination by mutual agreement...........................................................................................47 Section 12.06 Effective date of termination....................................................................................................47 Section 12.07 Extension of termination effective date. ..................................................................................47 Section 12.08 Payment and other provisions at Contract termination............................................................47 Section 12.09 Modification of Contract in the event of remedies. ..................................................................48 Section 12.10 Turnover assistance................................................................................................................48 Section 12.11 Rights upon termination or expiration of Contract. ..................................................................48 Section 12.12 HMO responsibility for associated costs. ................................................................................48 Section 12.13 Dispute resolution. ..................................................................................................................48 Section 12.14 Liability of HMO.......................................................................................................................49 Section 12.15 Pre-termination Process ..............................................................................................................52 Article 13. Assurances & Certifications .....................................................................................................49 Section 13.01 Proposal certifications. ............................................................................................................49 Section 13.02 Conflicts of interest..................................................................................................................49 Section 13.03 Organizational conflicts of interest. .........................................................................................49 Section 13.04 HHSC personnel recruitment prohibition.................................................................................50 Section 13.05 Anti-kickback provision............................................................................................................50 Section 13.06 Debt or back taxes owed to State of Texas.............................................................................50 Section 13.07 Certification regarding status of license, certificate, or permit. ................................................50 Section 13.08 Outstanding debts and judgments...........................................................................................50 Article 14. Representations & Warranties..................................................................................................50 Section 14.01 Authorization. ..........................................................................................................................50 Section 14.02 Ability to perform. ....................................................................................................................50 Section 14.03 Minimum Net Worth. ...............................................................................................................50 Section 14.04 Insurer solvency......................................................................................................................51 Section 14.05 Workmanship and performance. .............................................................................................51 Section 14.06 Warranty of deliverables. ........................................................................................................51 Section 14.07 Compliance with Contract. ......................................................................................................51 Section 14.08 Technology Access .................................................................................................................51 Article 15. Intellectual Property ..................................................................................................................52 Section 15.01 Infringement and misappropriation..........................................................................................52 Section 15.02 Exceptions...............................................................................................................................52 Section 15.03 Ownership and Licenses.........................................................................................................52 Article 16. Liability .......................................................................................................................................53 Section 16.01 Property damage.....................................................................................................................53 Section 16.02 Risk of Loss.............................................................................................................................53 Section 16.03 Limitation of HHSC’s Liability. .................................................................................................53 Article 17. Insurance & Bonding.................................................................................................................53 Section 17.01 Insurance Coverage................................................................................................................53 Section 17.02 Performance Bond. .................................................................................................................55 Section 17.03 TDI Fidelity Bond.....................................................................................................................55

Remedies & Disputes. 43 Section 12.01 Understanding and expectations.............................................................................................43 Section 12.02 Tailored remedies. ..................................................................................................................43 Section 12.03 Termination by HHSC. ............................................................................................................45 Section 12.04 Termination by HMO...............................................................................................................47 Section 12.05 Termination by mutual agreement...........................................................................................47 Section 12.06 Effective date of termination....................................................................................................47 Section 12.07 Extension of termination effective date. ..................................................................................47 Section 12.08 Payment and other provisions at Contract termination............................................................47 Section 12.09 Modification of Contract in the event of remedies. ..................................................................48 Section 12.10 Turnover assistance................................................................................................................48 Section 12.11 Rights upon termination or expiration of Contract. ..................................................................48 Section 12.12 HMO responsibility for associated costs. ................................................................................48 Section 12.13 Dispute resolution. ..................................................................................................................48 Section 12.14 Liability of HMO.......................................................................................................................49 Section 12.15 Pre-termination Process ..............................................................................................................52 Article 13. Assurances & Certifications .....................................................................................................49 Section 13.01 Proposal certifications. ............................................................................................................49 Section 13.02 Conflicts of interest..................................................................................................................49 Section 13.03 Organizational conflicts of interest. .........................................................................................49 Section 13.04 HHSC personnel recruitment prohibition.................................................................................50 Section 13.05 Anti-kickback provision............................................................................................................50 Section 13.06 Debt or back taxes owed to State of Texas.............................................................................50 Section 13.07 Certification regarding status of license, certificate, or permit. ................................................50 Section 13.08 Outstanding debts and judgments...........................................................................................50 Article 14. Representations & Warranties..................................................................................................50 Section 14.01 Authorization. ..........................................................................................................................50 Section 14.02 Ability to perform. ....................................................................................................................50 Section 14.03 Minimum Net Worth. ...............................................................................................................50 Section 14.04 Insurer solvency......................................................................................................................51 Section 14.05 Workmanship and performance. .............................................................................................51 Section 14.06 Warranty of deliverables. ........................................................................................................51 Section 14.07 Compliance with Contract. ......................................................................................................51 Section 14.08 Technology Access .................................................................................................................51 Article 15. Intellectual Property ..................................................................................................................52 Section 15.01 Infringement and misappropriation..........................................................................................52 Section 15.02 Exceptions...............................................................................................................................52 Section 15.03 Ownership and Licenses.........................................................................................................52 Article 16. Liability .......................................................................................................................................53 Section 16.01 Property damage.....................................................................................................................53 Section 16.02 Risk of Loss.............................................................................................................................53 Section 16.03 Limitation of HHSC’s Liability. .................................................................................................53 Article 17. Insurance & Bonding.................................................................................................................53 Section 17.01 Insurance Coverage................................................................................................................53 Section 17.02 Performance Bond. .................................................................................................................55 Section 17.03 TDI Fidelity Bond.....................................................................................................................55

Remedies & Disputes. 43 Section 12.01 Understanding and expectations.............................................................................................43 Section 12.02 Tailored remedies. .....................................................................................................................................................................................................................................43 Section 12.03 Termination by HHSC. .........................................................................................................................................................................................................................45 Section 12.04 Termination by HMO...............................................................................................................47 Section 12.05 Termination by mutual agreement...........................................................................................47 Section 12.06 Effective date of termination....................................................................................................47 Section 12.07 Extension of termination effective date. .....................................................................................................................................................................47 Section 12.08 Payment and other provisions at Contract termination............................................................47 Section 12.09 Modification of Contract in the event of remedies. .....................................................................................................................................48 Section 12.10 Turnover assistance................................................................................................................48 Section 12.11 Rights upon termination or expiration of Contract. .....................................................................................................................................48 Section 12.12 HMO responsibility for associated costs. .................................................................................................................................................................48 Section 12.13 Dispute resolution. .....................................................................................................................................................................................................................................48 Section 12.14 Liability of HMO.......................................................................................................................49 Section 12.15 Pre-termination Process ..............................................................................................................52 Article 13. Assurances & Certifications ...........................................................................................................................................................................................................49 Section 13.01 Proposal certifications. .........................................................................................................................................................................................................................49 Section 13.02 Conflicts of interest..................................................................................................................49 Section 13.03 Organizational conflicts of interest. ...................................................................................................................................................................................49 Section 13.04 HHSC personnel recruitment prohibition.................................................................................50 Section 13.05 Anti-kickback provision............................................................................................................50 Section 13.06 Debt or back taxes owed to State of Texas.............................................................................50 Section 13.07 Certification regarding status of license, certificate, or permit. .................................................................................................50 Section 13.08 Outstanding debts and judgments...........................................................................................50 Article 14. Representations & Warranties..................................................................................................50 Section 14.01 Authorization. .....................................................................................................................................................................................................................................................50 Section 14.02 Ability to perform. .........................................................................................................................................................................................................................................50 Section 14.03 Minimum Net Worth. ...............................................................................................................................................................................................................................50 Section 14.04 Insurer solvency......................................................................................................................51 Section 14.05 Workmanship and performance. ...........................................................................................................................................................................................51 Section 14.06 Warranty of deliverables. .................................................................................................................................................................................................................51 Section 14.07 Compliance with Contract. .............................................................................................................................................................................................................51 Section 14.08 Technology Access ...................................................................................................................................................................................................................................51 Article 15. Intellectual Property .....................................................................................................................................................................................................................................52 Section 15.01 Infringement and misappropriation..........................................................................................52 Section 15.02 Exceptions...............................................................................................................................52 Section 15.03 Ownership and Licenses.........................................................................................................52 Article 16. Liability ...............................................................................................................................................................................................................................................................................53 Section 16.01 Property damage.....................................................................................................................53 Section 16.02 Risk of Loss.............................................................................................................................53 Section 16.03 Limitation of HHSC’s Liability. ...................................................................................................................................................................................................53 Article 17. Insurance & Bonding.................................................................................................................53 Section 17.01 Insurance Coverage................................................................................................................53 Section 17.02 Performance Bond. ...................................................................................................................................................................................................................................55 Section 17.03 TDI Fidelity Bond.....................................................................................................................55

Remedies & Disputes. 43 41 Section 12.01 Understanding and expectations.............................................................................................43 41 Section 12.02 Tailored remedies. ..................................................................................................................43 ...................................................................................................................41 Section 12.03 Termination by HHSC. ............................................................................................................45 .............................................................................................................43 Section 12.04 Termination by HMO...............................................................................................................47 44 Section 12.05 Termination by mutual agreement...........................................................................................47 45 Section 12.06 Effective date of termination....................................................................................................47 45 Section 12.07 Extension of termination effective date. ..................................................................................47 ...................................................................................45 Section 12.08 Payment and other provisions at Contract termination............................................................47 45 Section 12.09 Modification of Contract in the event of remedies. ..................................................................48 ...................................................................45 Section 12.10 Turnover assistance................................................................................................................48 45 Section 12.11 Rights upon termination or expiration of Contract. ..................................................................48 ...................................................................45 Section 12.12 HMO responsibility for associated costs. ................................................................................48 .................................................................................45 Section 12.13 Dispute resolution. ..................................................................................................................48 ...................................................................................................................45 Section 12.14 Liability of HMO.......................................................................................................................49 Section 12.15 Pre-termination Process ..............................................................................................................52 46 Article 13. Assurances & Certifications .....................................................................................................49 ......................................................................................................46 Section 13.01 Proposal certifications. ............................................................................................................49 .............................................................................................................46 Section 13.02 Conflicts of interest..................................................................................................................49 47 Section 13.03 Organizational conflicts of interest. .........................................................................................49 ..........................................................................................47 Section 13.04 HHSC personnel recruitment prohibition.................................................................................50 47 Section 13.05 Anti-kickback provision............................................................................................................50 47 Section 13.06 Debt or back taxes owed to State of Texas.............................................................................50 47 Section 13.07 Certification regarding status of license, certificate, or permit. ................................................50 .................................................48 Section 13.08 Outstanding debts and judgments...........................................................................................50 48 Article 14. Representations & Warranties..................................................................................................50 48 Section 14.01 Authorization. ..........................................................................................................................50 ...........................................................................................................................48 Section 14.02 Ability to perform. ....................................................................................................................50 .....................................................................................................................48 Section 14.03 Minimum Net Worth. ...............................................................................................................50 ................................................................................................................48 Section 14.04 Insurer solvency......................................................................................................................51 48 Section 14.05 Workmanship and performance. .............................................................................................51 ..............................................................................................48 Section 14.06 Warranty of deliverables. ........................................................................................................51 .........................................................................................................49 Section 14.07 Compliance with Contract. ......................................................................................................51 .......................................................................................................49 Section 14.08 Technology Access .................................................................................................................51 ..................................................................................................................49 Article 15. Intellectual Property ..................................................................................................................52 Section 15.01 Infringement and misappropriation..........................................................................................52 Section 15.02 Exceptions...............................................................................................................................52 Section 15.03 Ownership and Licenses.........................................................................................................52 Article 16. Liability .......................................................................................................................................53 Section 16.01 Property damage.....................................................................................................................53 Section 16.02 Risk of Loss.............................................................................................................................53 Section 16.03 Limitation of HHSC’s Liability. .................................................................................................53 Article 17. Insurance & Bonding.................................................................................................................53 Section 17.01 Insurance Coverage................................................................................................................53 Section 17.02 Performance Bond. .................................................................................................................55 Section 17.03 TDI Fidelity Bond.....................................................................................................................55...................................................................................................................49

Remedies & Disputes. 43 39 Section 12.01 Understanding and expectations.............................................................................................43 39 Section 12.02 Tailored remedies. ..................................................................................................................43 ...................................................................................................................40 Section 12.03 Termination by HHSC. ............................................................................................................45 .............................................................................................................42 Section 12.04 Termination by HMO...............................................................................................................47 43 Section 12.05 Termination by mutual agreement...........................................................................................47 44 Section 12.06 Effective date of termination....................................................................................................47 44 Section 12.07 Extension of termination effective date. ..................................................................................47 ...................................................................................44 Section 12.08 Payment and other provisions at Contract termination............................................................47 44 Section 12.09 Modification of Contract in the event of remedies. ..................................................................48 ...................................................................44 Section 12.10 Turnover assistance................................................................................................................48 44 Section 12.11 Rights upon termination or expiration of Contract. ..................................................................48 ...................................................................44 Section 12.12 HMO responsibility for associated costs. ................................................................................48 .................................................................................44 Section 12.13 Dispute resolution. ..................................................................................................................48 ...................................................................................................................44 Section 12.14 Liability of HMO.......................................................................................................................49 Section 12.15 Pre-termination Process ..............................................................................................................52 45 Article 13. Assurances & Certifications .....................................................................................................49 ......................................................................................................45 Section 13.01 Proposal certifications. ............................................................................................................49 .............................................................................................................45 Section 13.02 Conflicts of interest..................................................................................................................49 45 Section 13.03 Organizational conflicts of interest. .........................................................................................49 ..........................................................................................46 Section 13.04 HHSC personnel recruitment prohibition.................................................................................50 46 Section 13.05 Anti-kickback provision............................................................................................................50 46 Section 13.06 Debt or back taxes owed to State of Texas.............................................................................50 46 Section 13.07 Certification regarding status of license, certificate, or permit. ................................................50 .................................................46 Section 13.08 Outstanding debts and judgments...........................................................................................50 Article 14. Representations & Warranties..................................................................................................50 Section 14.01 Authorization. ..........................................................................................................................50 Section 14.02 Ability to perform. ....................................................................................................................50 Section 14.03 Minimum Net Worth. ...............................................................................................................50 Section 14.04 Insurer solvency......................................................................................................................51 Section 14.05 Workmanship and performance. .............................................................................................51 Section 14.06 Warranty of deliverables. ........................................................................................................51 Section 14.07 Compliance with Contract. ......................................................................................................51 Section 14.08 Technology Access .................................................................................................................51 Article 15. Intellectual Property ..................................................................................................................52 Section 15.01 Infringement and misappropriation..........................................................................................52 Section 15.02 Exceptions...............................................................................................................................52 Section 15.03 Ownership and Licenses.........................................................................................................52 Article 16. Liability .......................................................................................................................................53 Section 16.01 Property damage.....................................................................................................................53 Section 16.02 Risk of Loss.............................................................................................................................53 Section 16.03 Limitation of HHSC’s Liability. .................................................................................................53 Article 17. Insurance & Bonding.................................................................................................................53 Section 17.01 Insurance Coverage................................................................................................................53 Section 17.02 Performance Bond. .................................................................................................................55 Section 17.03 TDI Fidelity Bond.....................................................................................................................5546

Remedies & Disputes. 43 39 Section 12.01 Understanding and expectations.............................................................................................43 39 Section 12.02 Tailored remedies. ..................................................................................................................43 40 Section 12.03 Termination by HHSC. ............................................................................................................45 42 Section 12.04 Termination by HMO...............................................................................................................47 43 Responsible Office: HHSC Office of General Counsel (OGC) Subject: Attachment A -- HHSC Uniform Managed Care Contract Terms & Conditions Version 1.8 Section 12.05 Termination by mutual agreement...........................................................................................47 44 Section 12.06 Effective date of termination....................................................................................................47 44 Section 12.07 Extension of termination effective date. ..................................................................................47 44 Section 12.08 Payment and other provisions at Contract termination............................................................47 44 Section 12.09 Modification of Contract in the event of remedies. ..................................................................48 44 Section 12.10 Turnover assistance................................................................................................................48 44 Section 12.11 Rights upon termination or expiration of Contract. ..................................................................48 44 Section 12.12 HMO responsibility for associated costs. ................................................................................48 44 Section 12.13 Dispute resolution. ..................................................................................................................48 44 Section 12.14 Liability of HMO.......................................................................................................................49 Section 12.15 Pre-termination Process ..............................................................................................................52 45 Article 13. Assurances & Certifications .....................................................................................................49 45 Section 13.01 Proposal certifications. ............................................................................................................49 45 Section 13.02 Conflicts of interest..................................................................................................................49 45 Section 13.03 Organizational conflicts of interest. .........................................................................................49 46 Section 13.04 HHSC personnel recruitment prohibition.................................................................................50 46 Section 13.05 Anti-kickback provision............................................................................................................50 46 Section 13.06 Debt or back taxes owed to State of Texas.............................................................................50 46 Section 13.07 Certification regarding status of license, certificate, or permit. ................................................50 46 Section 13.08 Outstanding debts and judgments...........................................................................................50 Article 14. Representations & Warranties..................................................................................................50 Section 14.01 Authorization. ..........................................................................................................................50 Section 14.02 Ability to perform. ....................................................................................................................50 Section 14.03 Minimum Net Worth. ...............................................................................................................50 Section 14.04 Insurer solvency......................................................................................................................51 Section 14.05 Workmanship and performance. .............................................................................................51 Section 14.06 Warranty of deliverables. ........................................................................................................51 Section 14.07 Compliance with Contract. ......................................................................................................51 Section 14.08 Technology Access .................................................................................................................51 Article 15. Intellectual Property ..................................................................................................................52 Section 15.01 Infringement and misappropriation..........................................................................................52 Section 15.02 Exceptions...............................................................................................................................52 Section 15.03 Ownership and Licenses.........................................................................................................52 Article 16. Liability .......................................................................................................................................53 Section 16.01 Property damage.....................................................................................................................53 Section 16.02 Risk of Loss.............................................................................................................................53 Section 16.03 Limitation of HHSC’s Liability. .................................................................................................53 Article 17. Insurance & Bonding.................................................................................................................53 Section 17.01 Insurance Coverage................................................................................................................53 Section 17.02 Performance Bond. .................................................................................................................55 Section 17.03 TDI Fidelity Bond.....................................................................................................................5547