Loss of Use From Allegedly Improper Drainage System Triggers Defense Under CGL Policy
February 28, 2018 —
Katherine E. Miller and Michael S. Levine – Hunton Insurance Recovery BlogThe Eleventh Circuit, in
Mid-Continent Casualty Co. v. Adams Homes of Northwest Florida, Inc., No. 17-12660, 2018 WL 834896, at * 3-4 (11th Cir. Feb. 13, 2018) (per curiam), recently held under Florida law that a homebuilder’s alleged failure to implement a proper drainage system that allowed for neighborhood flooding triggered a general liability insurer’s duty to defend because the allegations involved a potentially covered loss of use of covered property.
Reprinted courtesy of
Katherine E. Miller, Hunton & Williams and
Michael S. Levine, Hunton & Williams
Ms. Miller may be contacted at kmiller@hunton.com
Mr. Levine may be contacted at mlevine@hunton.com
Read the court decisionRead the full story...Reprinted courtesy of
Corporate Formalities: A Necessary Part of Business
February 18, 2020 —
Hannah Kreuser - Porter Law GroupMany benefits exist in choosing to create a corporation or limited liability company (“LLC”) as your business entity. However, what attracts most people to these entities is the protection they afford the business owner(s) against personal liability for the business’ obligations, debts, and other liabilities. Whatever reason prompts your decision to form a corporation or LLC, if you are like many smaller businesses, once the formation process is over its back to business as usual.
However, in order to keep the protection against personal liability associated with a corporation or LLC, the business must engage in, what are known as corporate formalities. Corporate formalities are formal actions that must be taken by a corporation or LLC in order to maintain the benefits associated with that business entity. These corporate formalities may be required under California law, by the bylaws, and/or by the operating agreement of your business.
When your business is formed as a corporation, many of the corporate formalities exist as part of California’s Corporations Code (“CCC”). These formalities include: (1) holding annual meetings (CCC § 600); (2) regularly electing directors (CCC § 301); (3) keeping meeting minutes (CCC § 1500); and (4) maintaining accurate corporate records (CCC § 1500). While these are only a few of the corporate formalities existing for corporations in the State of California, these formalities are often overlooked or put off by smaller businesses because they are either unknown to the business or are intended to be complied with later, as the actual running of the business takes priority.
Read the court decisionRead the full story...Reprinted courtesy of
Hannah Kreuser, Porter Law GroupMs. Kreuser may be contacted at
hkreuser@porterlaw.com
Congress Relaxes Several PPP Loan Requirements
June 15, 2020 —
Greg Tross & Michael Krueger – Newmeyer DillionOn June 3, 2020, Congress passed the Paycheck Protection Program Flexibility Act ("Act") which does exactly what it means to do: provide flexibility for PPP loan recipients. President Trump is expected to sign the bill into law within the week.
The Act extends the "covered period" for Paycheck Protection Program ("PPP") loans from the original eight weeks to 24 weeks or December 31, 2020, whichever is earlier. This extension provides much needed reprieve to small businesses who can utilize these funds to weather the economic effects of the Coronavirus Pandemic through 2020.
The Act also revises the limitations on how small businesses utilize their PPP loans. While the CARES Act originally required 75% of the PPP loan to be used for payroll costs, this number has now been reduced to 60%. This means that up to 40% of the PPP loan can be used to cover mortgage obligations, rent, and other covered utility payments.
The PPP loan payment deferral period has also been extended to align with the date on which the PPP loan's forgiveness amount is remitted to the lender. This should provide more certainty to small businesses on their payback obligations, if any.
Recently, the Small Business Administration also released loan forgiveness applications to assist a business in calculating their loan forgiveness. While the SBA will likely revise it with the Act's passing, small businesses should look at the application's framework to prepare for submitting their loan forgiveness requests in the future.
Newmeyer Dillion continues to follow COVID-19 and its impact on your business and our communities. Feel free to reach out to us at NDcovid19response@ndlf.com or visit us at www.newmeyerdillion.com/covid-19-multidisciplinary-task-force/.
Reprinted courtesy of
Greg Tross, Newmeyer Dillion and
Michael Krueger, Newmeyer Dillion
Mr. Tross may be contacted at greg.tross@ndlf.com
Mr. Krueger may be contacted at michael.krueger@ndlf.com
Read the court decisionRead the full story...Reprinted courtesy of
Florida Adopts Daubert Standard for Expert Testimony
October 07, 2019 —
Michael L. DeBona - The Subrogation StrategistSeven months ago, the Florida Supreme Court declined to adopt Daubert as the standard for admitting expert testimony in Florida state courts. In DeLisle v. Crane Co., 258 So. 3d 1219 (2018), the court reaffirmed that “Frye, not Daubert, is the appropriate test in Florida.” On May 23, 2019, however, Florida’s high court did an about-face. In In Re: Amendment to the Florida Evidence Code, No. SC19-107, the Florida Supreme Court overruled its decision in DeLisle and declared that Florida will now apply the Daubert standard to determine whether scientific evidence is admissible.
The Daubert standard comes from the case of Daubert v. Merrell Dow Pharm., Inc., 509 U.S. 579 (1993), which held that the longstanding Frye test[1] for admitting expert testimony was superseded by Rule 702 of the Federal Rules of Evidence. Daubert instructed that federal judges should act as “gatekeepers” to ensure expert testimony is rooted in scientifically valid principles and that those principles are properly applied to the facts at issue. In determining whether scientific evidence should be admitted, Daubert sets forth several factors to consider: the testability of the theory or technique; the peer review and publication of the theory or technique; the error rate for the technique; the standards controlling the technique’s operation; and the general acceptance of the theory or technique.[2] The Daubert standard is generally considered a more onerous test than Frye, precluding expert testimony that might otherwise go to the jury under Frye.[3] Whereas Frye is a single factor test that applies only to new or novel science, Daubert is a multifactor test that applies to all expert testimony.
Since Daubert, a growing number of states have moved away from the Frye test in favor of the Daubert standard; it is now followed by a majority of jurisdictions in the country. In 2013, the Florida State legislature attempted to move Florida in this direction by amending the Florida Evidence Code to codify the Daubert standard. But because the Florida Supreme Court is vested with the power to make procedural rules and it was unclear whether the Daubert standard was a procedural or substantive rule, it was uncertain whether the 2013 Daubert amendments were controlling law. Then in 2017, in In Re: Amendment to the Florida Evidence Code, No. SC16-181, the Florida Supreme Court expressly declined adopting the Daubert amendments to the extent they were procedural. This decision signaled that, if faced with the Daubert standard on appeal from a litigated case, the Florida Supreme Court would reaffirm that Frye – not Daubert – controlled the admissibility of expert testimony in Florida state courts.
Read the court decisionRead the full story...Reprinted courtesy of
Michael L. DeBona, White and Williams LLPMr. DeBona may be contacted at
debonam@whiteandwilliams.com
We've Surveyed Video Conferencing Models to See Who Fits the CCPA Bill: Here's What We Found
August 10, 2020 —
Shaia Araghi & Kyle Janecek – Newmeyer DillionWorldwide closures as a result of COVID-19 have resulted in an extreme surge in video conferencing use. This spike in use has also resulted in increased concern about the privacy of these video conferencing applications, including a class action lawsuit against one of the applications: Zoom. Because of this, we took a deeper look into the privacy policies of six prominent video conferencing applications and created a chart showing each video conferencing application's compliance with the California Consumer Privacy Act. Reviewing these materials will provide an awareness of the deficiencies within the Privacy Policies, which can help you become more well-informed about your own rights, and more knowledgeable about any deficiencies in your own business' privacy policy. If these widely-used and widely-known companies can have deficiencies, it is an important way to re-examine and fix these issues in your own.
To determine this, we reviewed the CCPA's twenty requirements for compliance, including: (1) the existence of a privacy policy, (2) required disclosures of information regarding the existence of rights under the CCPA, (3) instructions on how to exercise rights, and (4) providing contact information.
Here are the top 5 discoveries from our review:
1)
No videoconferencing applications address authorized agents. This makes sense, as the treatment of authorized agents were just laid out in the recently finalized regulations. This is a reminder to businesses to utilize these regulations when setting up compliance measures to ensure there is no risk in missing out on requirements like this, which will still be required and enforced by the Attorney General.
2)
Three platforms (WebEx, Skype, and Teams) have separate tabs and pages detailing privacy policies, and don't necessarily have a single unified and simple policy. Because of the accessibility requirements, this means that the privacy policy may not be readily accessible on the business's website, and may open companies to arguments that the entirety of their policy is non-compliant if key portions are hidden or otherwise inaccessible. Therefore to eliminate this concern, keep your policy unified, simple and in one location for ease of viewing.
3)
None of the platforms address information relating to minors under the age of 16, which is notable as some of these platforms have been used for online education. The final regulations outline different treatment for minors from ages 13 to 16, and for minors under the age of 13. As a result, privacy policies focused on compliance with the Children's Online Privacy Protection Act (COPPA) may be insufficient as it only applies to those under 13 years old.
4)
While all of the platforms state that no sale of information occurs, two platforms (Zoom and GoToMeeting) go above and beyond to explain the right to opt-out of sales. This is especially great as the CCPA permits that no notice needs to be given if no sale occurs. By taking this extra step, Zoom and GoToMeeting explain to their users that they have additional rights, which may be necessary as these platforms are also used by other entities, which may collect or otherwise use information collected from a videoconference meeting.
5)
Only one platform (Wire) does not give instructions on how to delete information. The CCPA regulations still require that information regarding instructions on how to delete information be given. The lack of instructions does not relieve Wire from its obligations, and similarly situated businesses may find themselves in a position where they will have to comply with a consumer request, in any form, as the regulations require that a business either comply, or list the proper instructions on how to make the request.
Download the Full Breakdown
To learn more about our findings and how the video conferencing companies stacked up against the CCPA, visit: https://www.newmeyerdillion.com/ccpa-privacy-policy-compliance-videoconferencing-platforms/. We hope this serves as a reminder to everyone to read the privacy platforms for the services you use and update your company's privacy policies to comply with the most recent regulations, as none of these services are currently in complete compliance, and it is only a matter of time before enforcement begins.
Shaia Araghi is an associate in the firm's Privacy & Data Security practice, and supports the team in advising clients on cyber-related matters, including compliance and prevention that can protect their day-to-day operations. For more information on how Shaia can help, contact her at shaia.araghi@ndlf.com.
Kyle Janecek is an associate in the firm's Privacy & Data Security practice, and supports the team in advising clients on cyber related matters, including policies and procedures that can protect their day-to-day operations. For more information on how Kyle can help, contact him at kyle.janecek@ndlf.com.
Read the court decisionRead the full story...Reprinted courtesy of
While Starts Fall, Builder Confidence and Permits are on the Rise
June 17, 2015 —
Beverley BevenFlorez-CDJ STAFFThe National Association of Home Builders’ (NAHB) Eye on Housing reported that “the NAHB/Wells Fargo Housing Market Index and the expansion of housing permits, suggest more growth ahead.”
While the Census Bureau and HUD reported that housing starts in May declined 11.1%, Eye on Housing points to a positive sign in that building permits were up 11.8% in the same month.
Read the court decisionRead the full story...Reprinted courtesy of
Reduce Suicide Risk Among Employees in Remote Work Areas
November 24, 2019 —
Sandra Moran - Construction ExecutiveIn the construction industry, a disturbing and unnerving trend has been developing over the past few decades. Construction and resource extraction have the highest rate of deaths by suicide compared to any other industry. This phenomenon is not limited to a single country. The statistics from three developed countries with strong construction and resource extraction industries (United States, United Kingdom and Australia), reflect the same pattern.
A major risk factor that has not been given much attention and scrutiny is the requirement for many workers to be away from their homes for long periods of time, based in remote locations and basecamps. This isolation contributes to loneliness and disconnectedness that increases the vulnerability to employees at risk due to underlying mental health disorders, such as depression and anxiety, or those with suicidal ideations or prior attempts. Basecamps or remote work locations remove workers from the support networks of family, friends, and even medical and psychological caregivers.
Employers placing employees in remote work locations should be mindful that simply wanting to work in a remote location does not necessarily equate to being able to cope well in such an environment—unless appropriate supports are provided. Companies need to become proactive to lead employees to become true teams to help reduce the risk of suicide among their workers.
Reprinted courtesy of
Sandra Moran, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the court decisionRead the full story...Reprinted courtesy of
Zillow Seen Dominating U.S. Home Searches with Trulia
July 30, 2014 —
Alex Sherman, Jeffrey McCracken and Prashant Gopal – BloombergA Zillow Inc. (Z) purchase of Trulia Inc. (TRLA) would create a dominant search website for U.S. house hunters, reshaping an online industry the companies helped popularize.
Zillow, the largest U.S. real estate website, is seeking to buy No. 2 Trulia for as much as $2 billion in cash and stock, according to people with knowledge of the matter. An agreement may be announced as soon as next week, said one of the people, who asked not to be identified because the information is private. Talks are ongoing and may not lead to a deal.
The companies help buyers and renters find information on homes, generating revenue by selling advertising and charging Realtors to place their listings prominently. Together the Zillow and Trulia networks had more than 68 million unique visitors in June, representing about 71 percent of all visitors to ComScore’s real estate category. That includes desktop and mobile users, ComScore said. A combination would make it hard for rivals to compete, said Steve Murray, president of Real Trends Inc. in Castle Rock, Colorado.
Mr. Sherman may be contacted at asherman6@bloomberg.net; Mr. McCracken may be contacted at jmccracken3@bloomberg.net; Mr. Gopal may be contacted at pgopal2@bloomberg.net
Read the court decisionRead the full story...Reprinted courtesy of
Alex Sherman, Jeffrey McCracken and Prashant Gopal, Bloomberg
