Don’t Put All Your Eggs in the Silent-Cyber Basket
August 07, 2022 —
William P. Sowers, Jr. & Michael S. Levine - Hunton Insurance Recovery BlogThe Eastern District of Pennsylvania recently gave another reminder why cyber insurance should be part of any comprehensive insurance portfolio. In Construction Financial Administration Services, LLC v. Federal Insurance Company, No. 19-0020 (E.D. Pa. June 9, 2022), the court rejected a policyholder’s attempt to find coverage under its professional liability insurance for a social engineering incident that defrauded over $1 million.
Construction Financial Administrative Services, which goes by CFAS, disburses funds to contractors. One of its clients, SWF Constructors, was hacked, and a bad actor posing as the client asked CFAS to distribute $600,000 to a sham third party. John Follmer, an executive at CFAS and the only person authorized to approve distribution of funds, approved it. The next day, the bad actor, again posing as the client, asked Follmer to transfer an additional $700,000. Follmer approved that distribution too.
Reprinted courtesy of
William P. Sowers, Jr., Hunton Andrews Kurth and
Michael S. Levine, Hunton Andrews Kurth
Mr. Levine may be contacted at mlevine@HuntonAK.com
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Insurance Companies Score Win at Supreme Court
December 26, 2022 —
Mason Fletcher & Ryan Sternoff - Ahlers Cressman & Sleight PLLCIn 2011, the Washington State Department of Transportation (“WSDOT”) contracted with Seattle Tunnel Partners, a joint venture of Dragados USA and Tutor Perini (“STP”) to construct a tunnel (“SR 99 Tunnel”) to replace the dilapidated Alaska Way Viaduct. STP obtained a builder’s “all-risk” insurance policy (“Policy”) from Great Lakes Reinsurance (UK) PLC and several other insurers (collectively, the “Insurers”) which insured against damage to both the project and the tunnel boring machine popularly known as Big Bertha (“Bertha”).
Bertha began excavating in July 2013 but broke down a few months later when the machine stopped working. Work did not resume on the project until December 2015. WSDOT and STP tendered insurance claims for the losses associated with the delays and breakdown of Bertha but the Insurers denied coverage. Thereafter, WSDOT and STP sued.
The Insurers moved the trial court for partial summary judgment to resolve some, but not all, of the coverage disputes. In a unanimous decision, the Washington State Supreme Court affirmed the trial court and Court of Appeals, and held that insurance companies do not have to reimburse WSDOT and STP for costs accrued during a two-year Project delay, under certain provisions of the insurance policies.
Reprinted courtesy of Mason Fletcher, Ahlers Cressman & Sleight PLLC and
Ryan Sternoff, Ahlers Cressman & Sleight PLLC
Mr. Sternoff may be contacted at ryan.sternoff@acslawyers.com
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Congratulations to BWB&O’s Newport Beach Team for Prevailing on a Highly Contested Motion to Quash!
January 08, 2024 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPCongratulations to Newport Partners Tyler Offenhauser and Jonathan Cothran, and Associate Anisha Kohli, who recently prevailed on behalf of BWB&O’s client before the Orange County Superior Court on a highly contested Motion to Quash Service based on Plaintiff’s failure to timely file and serve a DOE Amendment, naming our client.
BWB&O’s client was the owner of a building where Plaintiff, a licensed electrician, was electrocuted while performing an upgrade to the building’s electrical infrastructure. Plaintiff’s original lawsuit named only the building’s tenant, who was also represented by BWB&O. BWB&O was successful earlier this year on a Motion for Summary Judgment under the Privette Doctrine and won judgment on behalf of the client/tenant. While that MSJ was pending, Plaintiff surreptitiously added the building’s owner to the suit with a DOE Amendment, after several months earlier learning the owner and then tenant were entities operated by the same individual. However, Plaintiff never informed counsel or any other party of the filing. Moreover, after the MSJ was granted, Plaintiff then waited several more months to serve the building’s owner.
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Dolores Montoya, Bremer Whyte Brown & O'Meara LLP
Real Estate & Construction News Round-Up 04/06/22
April 11, 2022 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogA growing proptech startup aims to pre-emptively identify needed home repairs, 3D-printed homes could become a workable solution to the housing shortage, and more.
- Concerns about a housing-market crash are growing as the Fed begins to hike interest rates, leaving industry experts to speculate on what’s next for the U.S. housing bubble. (William Edwards, Insider)
- Real-estate sales in Manhattan topped $7 billion in the first quarter of 2022, with the average price of apartments jumping 19% over the previous year. (Robert Frank, CNBC)
- Proptech startup DwellWell claims to have produced the first “check engine light” that can pre-emptively diagnose needed home repairs. (T.P. Yeatts, The Real Deal)
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Pillsbury's Construction & Real Estate Law Team
EPA Issues Interpretive Statement on Application of NPDES Permit System to Releases of Pollutants to Groundwater
May 27, 2019 —
Anthony B. Cavender - Gravel2GavelOn Tuesday, April 23, 2019, in a development of interest to practically anyone who operates a plant or business, EPA published its Interpretive Statement in the Federal Register. (See 84 FR 16810 (April 23, 2019).) After considering the thousands of comments it received in response to a February 20, 2018, Federal Register notice, EPA has concluded that “the Clean Water Act (CWA) is best read as excluding all releases of pollutants from a point source to groundwater from a point source from NPDES program coverage, regardless of a hydrological connection between the groundwater and jurisdictional surface water.”
Acknowledging that its past public statements have not been especially consistent or unambiguous on this important matter, EPA states that this interpretation “is the best, if not the only reading of the CWA, is more consistent with Congress’ intent than other interpretations of the Act, and best addresses the question of NPDES permit program applicability for pollutant releases to groundwater within the authority of the CWA.” Indeed, the absence of “a dedicated statement on the best reading of the CWA has generated confusion in the courts, and uncertainly for EPA regional offices and states implementing the NPDES program, regulated entities, and the public.” The recent and contrary interpretations of this issue by the Ninth Circuit (Hawaii Wildlife Fund v. County of Maui, 886 F.3d 737) and the Fourth Circuit (Upstate Forever v. Kinder Morgan Energy Partners, LP, 887 F.3d 637) will be reviewed by the U.S. Supreme Court, which will now have the benefit of the agency’s official position. In addition, EPA discloses that it will be soliciting additional public “input” on how it can best provide the regulated community with “further clarity and regulatory certainly”; these comments will be due within 45 days (June 7, 2019).
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Do Engineers Owe a Duty to Third Parties?
June 10, 2015 —
Craig Martin – Construction Contractor AdvisorA Texas Court of Appeals, in USA Walnut Creek, DST v. Terracon Consultants, Inc., recently ruled that an engineer owed a duty to the buyer of an apartment complex, even though the engineer had no contractual relationship with the buyer. This is an expansion of the duty professionals owe on construction projects and could signal a change in the law.
In the case, Walnut Creek purchased a three year old apartment complex. A few years after taking possession, Walnut Creek noticed problems with the apartments, including cracking foundations, walls, breaking windows, and out of square door frames. Walnut Creek sued the developer and general contractor, alleging construction defects. The developer claimed that the engineer, Terracon, was at fault and Walnut Creek added Terracon to the lawsuit, asserting that Terracon was negligent in performing engineering services during construction. Terracon asked the court to dismiss the claim, arguing that it did not owe a duty to Walnut Creek. Walnut Creek in turn argued that engineers do owe a duty to subsequent owners. The trial court dismissed the case against the engineer and Walnut Creek appealed.
The appellate court reversed the trial court, finding that the engineer did owe a duty to subsequent purchasers. The court seemed persuaded by the allegations that the engineer actually created the construction defects which were the basis for the litigation.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
How Helsinki Airport Uses BIM to Create the Best Customer Experience
September 07, 2017 —
Aarni Heiskanen - AEC BusinessHelsinki Airport is arguably one of the best in the world. Thanks to its perfect location between Asia and Europe, it’s becoming an ever-more-popular hub. I interviewed Finavia’s Design Manager, Kari Ristolainen, about the airport’s development program and how building information modeling (BIM) is essential to its success.
On my way to Finavia’s project office, I walked by the newly opened South Pier. The construction company’s blue site huts were still there, but inside, the terminal seemed fully operational. The South Pier is the latest addition in the development program that started in 2014. Of the 21 airports that Finavia has in Finland, Helsinki is the crown jewel. The €900 million expansion and renovation program will eventually double the airport’s capacity.
In 2014, Finavia chose Lemminkäinen as the project management contractor for the terminal expansion. Destia is the partner in the alliance for extending the airport apron. PES Architects continues as the principal designer, while other designers include Sweco Structures, Granlund, and SITO.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
info@aepartners.fi
U.S. Government Bans Use of Mandatory Arbitration Agreements between Nursing Homes and Residents, Effective November 28, 2016
November 17, 2016 —
Jeffrey M. Daitz & Joseph Vento – Peckar & Abramson, P.C.On September 28, 2016, the Centers for Medicare and Medicaid Services (“CMS”), which is part of the U.S. Department of Health and Human Services, issued a new rule that bans federal funding to any nursing home that requires its residents to enter mandatory pre-dispute arbitration agreements upon admission. The rule prevents nursing homes from forcing residents to submit any disputes concerning care, payment for services, etc., to mandatory binding arbitration rather than to a court.
Mandatory arbitration agreements are frequently used in many types of industries and have been for decades. However, recent eff orts by several consumer advocate groups have sought to curtail the use of mandatory arbitration clauses in industries where the individuals who executed such agreements have little to no bargaining power. According to these groups, nursing home residents are potentially more vulnerable than most to being unwittingly bound by such agreements because of the nature of the admissions process. The new rule is set to take effect on November 28, 2016, and will only apply to agreements entered into after that date.
Reprinted courtesy of
Jeffrey M. Daitz, Peckar & Abramson, P.C. and
Joseph Vento, Peckar & Abramson, P.C.
Mr. Daitz may be contacted at jdaitz@pecklaw.com
Mr. Vento may be contacted at jvento@pecklaw.com
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