Cybersecurity "Flash" Warning for Construction and Manufacturing Businesses
April 26, 2021 —
Jeffrey M. Dennis - Newmeyer DillionThe FBI recently released its 2020 Internet Crime Report (Report), which details and analyzes complaints received through the FBI’s Internet Crime Complaint Center (IC3). In 2020, IC3 received a record number of complaints – nearly 800,000, with reported losses in excess of $4.1 billion. Companies must acknowledge that cybercrime is a real, dangerous threat to their business, and understand how, and why, these threats continue to escalate. At a minimum, businesses should take several proactive steps to protect themselves.
What is IC3?
IC3 is an online platform hosted by the FBI, which exists to provide the public with a trusted place to report cybercrime to the FBI. Since its inception in 2000, the IC3 has received 5.6 million complaints, and has averaged approximately 440,000 complaints over each of the last five years. The complaint figure for 2020 is nearly double that average.
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Jeffrey M. Dennis, Newmeyer DillionMr. Dennis may be contacted at
jeff.dennis@ndlf.com
Challenging and Defending a California Public Works Stop Payment Notice: Affidavit vs. Counter-Affidavit Process
October 21, 2019 —
William L. Porter - Porter Law GroupOne of the most effective collection procedures available to subcontractors and suppliers to California Construction projects is the “stop payment notice” procedure found under California Civil Code sections 9350 – 9364. Under this procedure, the unpaid subcontractor or supplier may serve the stop payment notice on the public entity and the direct or “prime” contractor and cause the public entity to withhold from the direct contractor 125% of the funds identified in the stop payment notice. Thereafter, funds will not generally be released unless the parties reach a settlement agreement or the issue is decided through litigation, arbitration or mediation. There is however an alternative procedure available to direct contractors to expedite the determination of whether a stop payment notice is valid and to possibly obtain an early release of the funds withheld by the public entity. This “summary proceeding” process could result in release of funds to the direct contractor in less than 30 days. The summary proceeding can also be challenged by the unpaid subcontractor or supplier. All public works contractors, subcontractors and suppliers should be aware of the process. The process for direct contractors to release a stop payment notice and for subcontractors and suppliers to challenge the process works as follows:
After a California stop payment notice has been served and the public entity has withheld funds accordingly, the direct contractor may challenge the stop payment notice by serving an “affidavit” (basically a sworn statement showing why the stop notice is not valid) on the public entity, demanding that the public entity release all funds withheld. Upon receipt of such an affidavit, the public entity will serve the subcontractor or supplier who served the stop payment notice with a copy of the affidavit, along with a “demand for release of funds”. If the stop payment notice claimant does not respond with a “counter-affidavit” by the date stated on the notice sent by the public entity (“not less than 10 days nor more than 20 days after service on the claimant of a copy of the affidavit”), then the public entity will be within its rights to release the withheld funds to the direct contractor, and the stop payment notice claimant will relinquish its stop payment notice rights.
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William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com
Bremer Whyte Sets New Precedent in Palos Verdes Landslide Litigation
August 26, 2024 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPIn what is believed to be a groundbreaking new precedent, Bremer Whyte Brown & O’Meara’s Los Angeles litigation team has obtained a landmark ruling on behalf of residents in the “Portuguese Bend” neighborhood of Palos Verdes, California. Congratulations to Partner
Michael D’Andrea and Senior Associate Shelly Mosallaei in receiving this result for our clients.
Plaintiff, a real estate developer, sued a number of local residents and property owners, including our client, alleging that their failure to address landslides and geological disturbances around Plaintiff’s property constituted a legal trespass and nuisance. Plaintiff alleged that its plans to develop multiple lots in Palos Verdes was thwarted because Defendant’s soil and land encroached onto Plaintiff’s property. Plaintiff’s suit against multiple residents created an uproar in the community regarding who was ultimately responsible (if anyone) for natural soils movement that has plagued this neighborhood for years.
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Dolores Montoya, Bremer Whyte Brown & O'Meara LLP
Napa Quake Seen Costing Up to $4 Billion as Wineries Shut
August 27, 2014 —
Michael B. Marois, Zachary Tracer and Dan Hart – BloombergThe earthquake that struck northern California yesterday will lead to economic losses of as much as $4 billion, fueled by damaged wineries and shuttered businesses that rely on tourists.
Insurers will probably cover about $2.1 billion, according to an estimate from Kinetic Analysis Corp., which projected total losses of about twice that sum. Costs borne by the industry may be limited because many homeowners don’t have earthquake coverage, according to the Insurance Information Institute.
“The main source of claims could well be commercial claims, those coming from wineries and vineyards and other commercial interests,” Robert Hartwig, the institute’s president, said in an interview today. “It will take a while for the business owners to sort this out.”
Mr. Marois may be contacted at mmarois@bloomberg.net; Mr. Tracer may be contacted at ztracer1@bloomberg.net; Mr. Hart may be contacted at dahart@bloomberg.net
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Michael B. Marois, Zachary Tracer and Dan Hart, Bloomberg
Daiwa House to Invest 150 Billion Yen in U.S. Rental Housing
March 07, 2014 —
Kathleen Chu – BloombergDaiwa House Industry Co. (1925), Japan’s biggest homebuilder by market value, plans to invest 150 billion yen ($1.48 billion) in U.S. rental housing, three times more than it had aimed to allocate to overseas investments, to boost revenue.
Daiwa House will acquire and develop leasing properties in Texas and allocate the funds over the next three years, the Osaka-based company said in an e-mailed statement today. The homebuilder targets 50 billion yen of revenue in the U.S. by the year ending March 2019, it said.
Japan’s shrinking population has prompted the country’s homebuilders such as Daiwa House to seek new revenue sources. Texas is the most that Daiwa House is investing overseas for rental housing and compares with the 50 billion yen the company had announced for investments abroad in its mid-term plan in November.
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Kathleen Chu, BloombergMs. Chu may be contacted at
kchu2@bloomberg.net
Work to Solve the Mental Health Crisis in Construction
September 05, 2022 —
Bruce Morton & Diane Andrea - Construction ExecutiveThe suicide rate for construction is one of the highest among major industries. That statistic is from a 2018 report from the Centers for Disease Control and Prevention. And it’s one major reason why the concern about mental health in the construction industry has grown. Research shows that as many as 90% of all people who die by suicide have a mental health condition. Depression is the most common cause, but other conditions such as substance use disorders may have an impact as well.
What is causing mental health conditions in the construction industry? According to the U.S. Bureau of Labor Statistics, 97% of the U.S. construction industry is male—and men experience the highest rate of suicides. Yet, while the suicide rate for women in construction is lower than that for men in the construction industry, it appears to be much higher than the suicide rate for the general female population. Being “tough” and “strong” are highly valued; acknowledging mental health concerns—or even seeking help—may be considered a sign of weakness. There is often fear of shame and judgment for admitting you have a problem.
In addition, the nature of construction industry jobs may affect mental health. Injuries may cause chronic pain, which can result in substance disorders like opioid use. Seasonal work can result in layoffs, which puts a strain on family relationships and finances. The job is high-stress and the work is deadline-driven. Employees work long hours, potentially resulting in fatigue. Sometimes work is away from home for extended periods. The pandemic has exacerbated every other problem while creating its own.
Reprinted courtesy of
Bruce Morton and Diane Andrea, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Mr. Morton may be contacted at bruce.morton@marshmma.com
Ms. Andrea may be contacted at Diane.Andrea@MarshMMA.com
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Expert Can be Questioned on a Construction Standard, Even if Not Relied Upon
August 07, 2022 —
Garret Murai - California Construction Law BlogIt’s not uncommon in construction defect litigation for each side retain one or more experts to give their opinion as to whether something was constructed in accordance with the standard of care. This usually results in what we legal practitioners call a “battle of the experts.”
The California Code of Civil Procedure and Evidence Code include specific provisions applicable to experts including when they must be disclosed, when and how they can be deposed, and what opinions they can render. When attempting to challenge an expert it is not uncommon for one side to argue that the other side’s expert did not consider a certain fact or certain standard in reaching his or her opinion, therefore, allowing that party to argue at trial that the expert’s opinion is somehow flawed.
However, there are also certain limitations, including a limitation restricting a party from cross-examining an expert on any scientific, technical, or professional test, treatise, journal or similar publication if the witness did not rely on such publication in arriving at or forming his or her opinion. The next case,
Paige v. Safeway, Inc. (2021) 74 Cal.App.5th 1108, involved a case of first impression: Namely, whether an expert who did not rely on a publication in forming his or her opinion can nevertheless be questioned on a publication (in this case an ASTM standard) because the publication is a “reliable authority.”
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
New York Court Holds Radioactive Materials Exclusion Precludes E&O Coverage for Negligent Phase I Report
October 30, 2018 —
Brian Margolies - TLSS Insurance Law BlogIn its recent decision in Merritt Environmental Consulting Corp. v. Great Divide Ins. Co., 2018 U.S. Dist. LEXIS 175527 (E.D.N.Y. Oct. 10, 2018), the United States District Court for the Eastern District of New York had occasion to consider the application of a radioactive materials exclusion in a professional liability policy.
Great Divide’s insured, Merritt Environmental, was hired as an environmental consultant by a bank in connection with a mortgage refinance of a property located in Westchester County, New York. Merritt’s responsibility was to prepare a Phase I environmental report concerning the property, which the bank ultimately relied on in agreeing to the refinance. It was later claimed, however, that Merritt’s report failed to document the full extent of the property’s radium and uranium contamination resulting from its use in the Manhattan Project. Merritt was named in two separate lawsuits as a result of its allegedly faulty report, including one by the bank alleging that Merritt negligently prepared its report.
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Brian Margolies, Traub Lieberman Straus & Shrewsberry LLPMr. Margolies may be contacted at
bmargolies@tlsslaw.com
