South Carolina’s New Insurance Data Security Act: Pebbles Before a Landslide?
June 13, 2018 —
Richard Borden, Sedgwick Jeanite & Joshua Mooney - White and Williams LLPThe ramp-up of cybersecurity regulation, albeit in a patchwork fashion through state-level legislation, has begun. On May 18, 2018, South Carolina enacted the Insurance Data Security Act (Act), becoming the first state to pass legislation based upon the Insurance Data Security Model Law that was approved by the National Association of Insurance Commissioners (NAIC) last October. The Act makes very little change to the model law’s text, which in turn, is based on 23 NYCRR § 500, et seq., the cybersecurity regulations promulgated by the New York State Department of Financial Services in March 2017. The Act establishes stringent standards for both data security programs, and an entity’s response to a “cybersecurity event” through an organized and methodical investigation and notification to the state’s Department of Insurance. Like New York’s cybersecurity regulations, the Act requires insurers to submit to the Department of Insurance annual certification of compliance and has a ratcheted implementation of portions of the legislation on insurers and brokers operating or otherwise licensed to do business in the state. It does not create a private cause of action.
Reprinted courtesy of White and Williams LLP attorneys
Richard Borden,
Sedgwick Jeanite and
Joshua Mooney
Mr. Borden may be contacted at bordenr@whiteandwilliams.com
Mr. Jeanite may be contacted at jeanites@whiteandwilliams.com
Mr. Mooney may be contacted at mooneyj@whiteandwilliams.com
Read the court decisionRead the full story...Reprinted courtesy of
California to Require Disclosure of Construction Defect Claims
October 30, 2013 —
CDJ STAFFCalifornia Governor Jerry Brown has signed Senate Bill 625. Starting in July 2014, anyone who sells a home will have to disclose all claims made of construction defects and the status of these claims.
Read the court decisionRead the full story...Reprinted courtesy of
Pre-Covid Construction Contracts Unworkable as Costs Surge, Webuild Says
October 17, 2022 —
Angus Whitley - BloombergInfrastructure construction contracts signed before the pandemic have become widely unworkable because of the surging cost of labor and materials, supply-chain blockages and difficulties in securing manpower, according to builder Webuild SpA.
Milan-based Webuild is wrestling with a 2019 agreement with the Australian government to construct the country’s largest hydroelectric power station for A$5.1 billion ($3.2 billion). It’s meant to be completed by 2026. The Snowy 2.0 project, in the Snowy mountains about six hours’ drive south of Sydney, has come to highlight the challenges of completing large-scale projects on terms that were struck before Covid-19, and before Russia invaded Ukraine.
Webuild’s Asia-Pacific director, Marco Assorati, said the value of the Snowy contract, as well as certain other parameters, need to be changed to reflect the current market. He declined to comment specifically on media reports that the consortium has asked the Australian government for an extra A$2.2 billion to complete the work and that the project is 18 months behind schedule. “It is challenging,” Assorati said.
“I think clients understand this conversation must happen and there must be a way to cope with unforeseen increases in cost,” Assorati said. “It’s not needed only on the Snowy project. It’s affecting projects everywhere globally.”
Read the court decisionRead the full story...Reprinted courtesy of
Angus Whitley, Bloomberg
Team Temporarily Stabilizes Delaware River Bridge Crack
February 02, 2017 —
Justin Rice - Engineering News-RecordThe team temporarily stabilizing the Delaware River Bridge and planning its permanent repair also are trying to find a precedent for the bridge’s uncommon fracture. Connecting the Pennsylvania and New Jersey turnpikes, the 61-year-old symmetrical truss bridge was shut down indefinitely on Jan. 20, when a complete fracture in a steel truss was discovered below the bridge deck.
Read the court decisionRead the full story...Reprinted courtesy of
Justin Rice, ENRMr. Rice may be contacted at
ricej@enr.com
Resolving Subcontractor Disputes with Pass-Through Claims and Liquidation Agreements
May 13, 2024 —
Stephanie Cooksey - Peckar & Abramson, P.C.Imagine a project where you are unable to reach final completion due to an unresolved subcontractor claim. If the project owner is responsible for the claim, and both the owner and subcontractor are entrenched in their positions, how would you resolve this dispute?
The default option is a three-party lawsuit where the subcontractor sues you in your capacity as general contractor. By denying the claim, you bring the owner into the lawsuit as a liable party to the subcontractor’s claim. This option is efficient from the judicial system’s perspective, as it means one lawsuit instead of two. The subcontractor cannot sue the owner since the two have no contract between them. Thus, the subcontractor’s recourse is limited to suing the contractor. In the three-party lawsuit, you argue that if the subcontractor prevails in its claim against you, the owner is liable. If the owner successfully defends against the claim, the subcontractor takes nothing.
Putting judicial economy aside, it may not make economic sense for contractors to have a lawyer involved in litigating a case where they have no skin in the game. Fortunately, there is a better option than the three-party lawsuit on multi-party construction projects.
Read the court decisionRead the full story...Reprinted courtesy of
Stephanie Cooksey, Peckar & Abramson, P.C.Ms. Cooksey may be contacted at
scooksey@pecklaw.com
Privileged Communications With a Testifying Client/Expert
June 10, 2019 —
Shannon M. Warren - The Subrogation StrategistIn
In re City of Dickinson, 568 S.W.3d 642 (Tex. 2019), the Supreme Court of Texas recently assessed whether a client’s emails with its counsel were subject to disclosure after the client was designated as a testifying expert witness. In re City of Dickinson involved a coverage dispute between a policyholder and its insurer. The policyholder moved for summary judgment on the issue of causation, essentially alleging that its insurer did not pay all damages caused by Hurricane Ike. In responding to the motion, the insurer relied upon an affidavit by one of its employees, a claims examiner, that included both factual testimony and expert witness testimony.
The policyholder subsequently filed a motion to compel, seeking the production of emails between the claims examiner and the insurer’s counsel that were generated while the affidavit was being drafted. The emails contained numerous revisions of the affidavit. The insurer objected, asserting that the emails were protected by the attorney-client privilege and were generated in the course of the rendition of legal services.
The trial court granted the motion to compel, ordering production. Ultimately, after a series of appeals, the Supreme Court had to decide whether the documents in dispute were subject to discovery. In resolving this issue, the court examined the rules pertaining to expert disclosures. As noted by the court, the rules authorize the production of all documents provided to a testifying expert witness. Thus, the court was faced with determining if its rules required the disclosure of documents that are also subject to the attorney-client privilege.
Read the court decisionRead the full story...Reprinted courtesy of
Shannon M. Warren, White and WilliamsMs. Warren may be contacted at
warrens@whiteandwilliams.com
Colorado Senate Revives Construction Defects Reform Bill
March 01, 2017 —
Beverley BevenFlorez-CDJ STAFFA re-booted construction defects reform bill recently passed its first Senate committee, according to the Denver Business Journal. Next, Senate Bill 156, sponsored by Sen. Owen Hill, R-Colorado Springs, heads to the Senate floor for debate.
SB 156 “would require that condominium owners alleging construction defects take their disputes to arbitration or mediation if requested by builders,” the Denver Business Journal reported. “It also would require that homeowners be informed of the consequences of filing legal actions over purported disputes and that a majority of all owners in a condominium complex vote to proceed with legal action, rather than just a majority of homeowners association board members.”
However, it is almost identical to the failed measures that were introduced in 2014 and 2015.
Homeowners association group members and owners of defective condominiums argued against the measure, stating “that the effort would not improve the quality of building in the state, but simply would block aggrieved Coloradans from taking their complaints before a jury of their peers.”
Proponent of the bill, Tom Clark, CEO of Metro Denver Economic Development Corp., said “that Denver’s housing costs have risen since the first bill was introduced in 2013 to the sixth-most-expensive in the country – and are tops for any metro area not on a coast.”
Read the court decisionRead the full story...Reprinted courtesy of
Court Finds that Subcontractor Lacks Standing to Appeal Summary Judgment Order Simply Because Subcontractor “Might” Lose at Trial Due to Order
May 03, 2021 —
Garret Murai - California Construction Law BlogCases sometimes take unanticipated twists and turns. Atlas Construction Supply, Inc. v. Swinerton Builders, Case No. D076426 (January 26,2021), involving a tragic construction accident, a motion for summary judgment, a motion for good faith settlement, and a stipulated dismissal, is one of those cases.
The Accident
Swinerton Builders was the general contractor on a residential construction project in San Diego, California. Swinerton contracted with J.R. Construction, Inc. to perform concrete work and with Brewer Crane & Rigging, Inc. to perform crane work on the project. J.R. Construction in turn rented a concrete column formwork approximately 10 feet tall and weighing 300 to 400 pounds from Atlas Construction Supply, Inc.
One day on the construction project, Marcus Develasco, Sr. and another co-worker, employees of J.R. Construction, climbed to the top of the formwork to adjust its size. The formwork, which had been positioned on the site by Brewer, was upright but unsupported by braces. When the co-worker stepped off the formwork, Develasco’s weight caused the unsecured formwork to topple over, killing Develasco in the process.
Read the court decisionRead the full story...Reprinted courtesy of
Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com