Attorney-Client Privilege in the Age of Cyber Breaches
October 18, 2021 —
Shaia Araghi - Newmeyer DillionInvestigations and forensic reports relating to a cybersecurity breach may not always be protected by the attorney-client privilege or work product protection. Companies seeking such reports after a data breach must take caution to protect them from a possible waiver of privilege in the event of subsequent litigation relating to a data breach. The following recent cases highlight the potential waiver of privilege in light of the preparation of a forensic report.
- In re Capital One Consumer Data Security Breach Litigation, 2020 WL 3470261 (E.D. Va. June 25, 2020)
- After a data breach occurred, Capital One retained a law firm that later entered into an agreement with Mandiant for various cyber-related services (including incident remediation), which required that Mandiant provide deliverables to the firm, rather than to Capitol One. In re Capital One Consumer Data Security Breach Litigation, 2020 WL 2731238, at *1 (E.D. Va. June 25, 2020). Plaintiffs sought release of the report created by Mandiant (regarding the factors leading to the breach), arguing that it was prepared for business and regulatory purposes and therefore was not privileged, while Capital One argued that the report was privileged because it was prepared in anticipation of litigation. Ibid. The Court determined that Capital One did not carry its burden of establishing that the report was protected by the attorney work-product doctrine and ordered that Capital One produce the report. Id. at *7. In its reasoning, the Court stated that the fact that there is litigation does not, by itself, provide prepared materials with work-product protection. Ibid. The work-product protection applies when a party faces a claim following an event that may result in litigation, and the work product would not have been prepared in a substantially similar form but for the prospect of that litigation. Ibid.
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Shaia Araghi, Newmeyer DillionMs. Araghi may be contacted at
shaia.araghi@ndlf.com
Contractor to Repair Defective Stucco, Plans on Suing Subcontractor
February 21, 2013 —
CDJ STAFFThe contractor for the Manatee County Judicial Center will be replacing the defective stucco on the building, but they have stated that they intend to go after the subcontractor who initially installed the defective stucco. The contractor, Balfour Beatty LLC, has said they will pay for the repairs, but Steve Holt, an executive of the firm said that “we have initiated a lawsuit against the subcontractor, who we believe was substantially or completely responsible to recover those funds.” Mr. Holt named Commercial Plastering as the subcontractor responsible.
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Texas Supreme Court Finds Payment of Appraisal Award Does Not Absolve Insurer of Statutory Liability
April 19, 2021 —
Allison Griswold & Sarah Smith - Lewis BrisboisThe Texas Supreme Court recently published its long-awaited decision in the Hinojos v. State Farm Lloyds. In it, the court affirmed its holding in Barbara Technologies, finding that payment of an appraisal award does not absolve an insurer of statutory liability when the insurer accepts a claim but pays only part of the amount it owes within the statutory deadline, and a policy holder can proceed with an action under the Texas Prompt Payment of Claims Act.
In 2013, Louis Hinojos made a claim for storm damage to his home. State Farm’s initial inspection resulted in an estimate below the deductible, but Hinojos disagreed and requested a second inspection. At the second inspection, the adjuster identified additional damage resulting in a payment to Hinojos of $1,995.11. Hinojos then sued State Farm – and State Farm invoked appraisal approximately 15 months after suit was filed. The appraisal resulted in State Farm tendering an additional payment of $22,974.75. State Farm moved for summary judgment, arguing that timely payment of an appraisal award precluded prompt payment (or Chapter 542) damages. The trial court granted summary judgment and Hinojos appealed (notably Barbara Technologies had not yet been decided). The Court of Appeals affirmed State Farm’s victory on the basis that “State Farm made a reasonable payment on Hinojos’s claim within the sixty-day statutory limit….” Hinojos petitioned the Texas Supreme Court for review.
Reprinted courtesy of
Allison Griswold, Lewis Brisbois and
Sarah Smith, Lewis Brisbois
Ms. Griswold may be contacted at Allison.Griswold@lewisbrisbois.com
Ms. Smith may be contacted at Sarah.Smith@lewisbrisbois.com
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Surprising Dismissal of False Claims Act Case Based on Appointments Clause - What Does It Mean?
October 15, 2024 —
Steven H. Lee - Lewis Brisbois NewsroomAtlanta, Ga. (October 1, 2024) - In a surprising turn of events, the U.S. District Court for the Middle District of Florida recently dismissed a False Claims Act (FCA) lawsuit brought by relator Clarissa Zafirov against Florida Medical Associates, LLC, and other defendants. U.S. District Judge Kathryn Kimball Mizelle
ruled that the FCA’s qui tam provisions, which allow private individuals to bring lawsuits on behalf of the government, violate the Constitution’s Appointments Clause.
This decision follows another unexpected ruling by U.S. District Judge Aileen Cannon in the Southern District of Florida, where the court similarly dismissed an indictment against former President Donald Trump based on the same constitutional clause.
At the heart of these rulings is the argument that FCA relators - who decide whom to sue, which legal theories to pursue, and how to proceed - exercise significant executive authority. Because they are not appointed by the President, a department head, or a court, the judges concluded that these relators hold their positions unconstitutionally. As a result, Judge Mizelle dismissed the case entirely.
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Steven H. Lee, Lewis BrisboisMr. Lee may be contacted at
Steven.Lee@lewisbrisbois.com
This Times Square Makeover Is Not a Tourist Attraction
July 28, 2016 —
Alisa Zevin - Engineering News-RecordThe 80-year-old Bow Tie Building in the heart of New York City’s Times Square is undergoing a major renovation of retail space, but the tens of thousands of daily passersby will not see any construction activities: A 53-ft-tall dark-green plywood wall completely hides the 167,000-sq-ft structure.
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Alisa Zevin, Engineering News-RecordMs. Zevin may be contacted at
zevina@enr.com
General Contractor Cited for Safety Violations after Worker Fatality
September 17, 2015 —
Beverley BevenFlorez-CDJ STAFFThe general contractor of Washington’s SR 520 Floating Bridge Project was cited by the Washington Department of Labor & Industries (L&I) “for serious safety violations following the death of worker Joe Arrants in March.” According to EHS Today, “Arrants was killed when he fell approximately 60 feet to the dock below.”
EHS Today reported that during the investigation, L&I found that the fall protection systems were not used “in accordance with fall protection standards and the manufacturer’s recommendation during forming and stripping operations.” Furthermore, there was no “lifesaving skiff immediately available,” or “a ring buoy with at least 90 feet of line, which would make rescue difficult if a worker fell into the water,” and the contractor did not ensure that the hand tools and equipment were in good, working condition.
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Land Planners Not Held to Professional Standard of Care
October 10, 2013 —
Heather Anderson — Higgins, Hopkins, McLain & Roswell, LLC.Recently, the Colorado Court of Appeals indicated that there is no professional duty of care applicable to land planners. See Stan Clauson Associates, Inc. v. Coleman Brothers Constr., LLC, 297 P.3d 1042 (Colo. App. 2013). Stan Clauson Associates, Inc. (“SCA”) agreed to provide land planning services to Coleman Brothers Construction, LLC (“Coleman”) for property referred to as Crown Mountain in a letter and then verbally agreed to provide a development analysis for another property, located on Emma Road in Basalt, Colorado. Thereafter, SCA sent letters to the defendant concerning the possible subdivision and development of the Emma Road property.
Approximately two years later, SCA sued Coleman for breach of the verbal agreement concerning the Emma Road property. Coleman then asserted counterclaims against SCA for negligently providing inaccurate advice about whether the Emma Road property could be subdivided and developed, and that the county had denied the planned unit development sketch plan SCA prepared and submitted on behalf of Coleman. The district court granted SCA’s motion for summary judgment thereby concluding that the economic loss rule barred Coleman’s negligence counterclaims. The Court of Appeals agreed.
In its opinion, the Court of Appeals reiterated the economic loss rule espoused in the Colorado Supreme Court in the Town of Alma v. AZCO Constr., Inc., 10 P.3d 1256, 1264 (Colo. 2000) case. “Under the economic loss rule, ‘a party suffering only economic loss from the breach of an express or implied contractual duty may not assert a tort claim for such a breach absent an independent duty of care under tort law.’”
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Heather AndersonHeather Anderson can be contacted at
anderson@hhmrlaw.com
No Damage for Delay? No Problem: Exceptions to the Enforceability of No Damage for Delay Clauses
October 18, 2021 —
Chris Broughton, Jones Walker LLP - ConsensusDocsIntroduction:
Under a no-damage-for-delay clause, the owner is not liable for any monetary damages resulting from delays on the project. In lieu of monetary recovery, the contractor’s remaining remedy is a non-compensatory time extension. These clauses are common at the contractor-subcontractor interface as well.
While no-damage-for-delay clauses are enforced in most jurisdictions, some states, either by statute or case law, have limited the enforceability of no-damage-for-delay clauses. Other states have also limited the enforceability of these clauses on state government contracts, and a select few have outlawed them on all projects regardless if they are publicly or privately owned. Additionally, for subcontractors on federal projects, the Miller Act may provide a way to avoid no-damage-for-delay and recover against the general contractor’s payment bond.
This article provides an overview of no-damage-for-delay clauses and the exceptions to enforcement of these clauses. However, due to the consequences of a no-damage-for-delay clause, it is important to know the terms of your contract and the law that governs your project.
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Chris Broughton, Jones Walker LLPMr. Broughton may be contacted at
cbroughton@joneswalker.com