New York Regulator Issues Cyber Insurance Guidelines
March 29, 2021 —
Anne Kelley - Newmeyer DillionFrom the rise of ransomware attacks to the recent SolarWinds-based cyber espionage campaign that struck at the very heart of the U.S. Government, it is apparent that cybersecurity is more critical than ever. COVID-19 and the remote workplace has only served to embolden cyber criminals, and cyber risk now permeates nearly every aspect of modern life from health care data to national security.
Cyber insurance plays a critical role in managing cyber risk, and businesses increasingly rely on such coverage to minimize cyber losses. Because of surging cybercrime, it is estimated that the cyber insurance market will increase from $3.15 billion in 2019 to $20 billion by 2025. Having a robust cyber insurance market and ample available coverage is vital to U.S. businesses.
In recognition of this reality, the New York Department of Financial Services recently issued the first guidance by a U.S. regulator on cyber insurance—a Cyber Insurance Risk Framework. A key premise of the Framework is to drive improved cybersecurity and cyber risk management, thereby reducing cyberattacks and ensuring that cyber insurance premiums do not spiral out of control. The Framework recognizes the importance of ensuring a healthy cyber insurance market, and applies to all property/casualty insurers that write cyber insurance.
Read the court decisionRead the full story...Reprinted courtesy of
Anne Kelley, Newmeyer DillionMs. Kelley may be contacted at
anne.kelley@ndlf.com
So, You Have a Judgment Against a California Contractor or Subcontractor. What Next? How Can I Enforce Payment?
May 04, 2020 —
William L. Porter - Porter Law GroupThe Contractors’ State License Board (“CSLB”) represents the interests of the public in California construction matters. In the field of California construction, the CSLB is all powerful. The agency has the right to suspend the license of any contractor or subcontractor who does not pay on a construction related judgment against it. If you are successful in obtaining a court judgment against a contractor or a subcontractor in a construction-related case, you can utilize the services of the CSLB to suspend the contractors’ license of that contractor or subcontractor until the judgment has been paid. Once the license is suspended, the contractor or subcontractor has no legal right to work as a contractor or subcontractor and can even be arrested for doing so. Details on using the CSLB to suspend the license of a contractor or subcontractor who has a construction-related judgment against it can be accessed at this particular CSLB link:
CSLB – Judgment.
On receipt of notice of the construction-related judgment, the CSLB will either suspend the contractors’ license of any contractor or subcontractor who does not pay on the judgment or who does not appeal the judgment to the Court of Appeals or file bankruptcy within 90 days. There also exists an opportunity for the licensed debtor to file a bond with the CSLB. The bond will either have to be renewed annually or the judgment paid, whichever comes first.
Read the court decisionRead the full story...Reprinted courtesy of
William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com
140 Days Until The California Consumer Privacy Act Becomes Law - Why Aren't More Businesses Complying?
September 09, 2019 —
Kyle Janecek and Jeff Dennis – Newmeyer DillionCalifornia, for better or for worse, has a reputation as being a trendsetter, and has taken the lead in the United States by passing the "California Consumer Privacy Act," or "CCPA." This massive law has been on the books since 2018, but hasn't taken effect yet. However, the timeframe for businesses to be in compliance is rapidly diminishing. Currently, there are less than five months for businesses to (a) familiarize themselves with what the law requires; (b) determine how and if they are affected by the law; and (c) determine how to be in compliance with the law's demands. Right now, companies aren't making a rush to become CCPA compliant, but this is a mistake. Below are a few of the misconceptions that businesses have, as well as the realities.
MISCONCEPTION 1: It doesn't apply to my company.
For many businesses, it will apply. The baseline of the CCPA is: (1) does the business do anything with California residents (including employees); (2) is it for-profit; and (3) it either has $25 million annual revenue, "sells" 50,000 pieces of personal information or receives 50% or more of its revenue from personal information.
It does not matter if the business is in Nevada, Arizona, Texas or Delaware. So long as there is some connection to Californian residents, exists to make a profit, and otherwise satisfies either the profit, volume, or revenue percentage requirements, it applies. On that note, even if a business does not sell personal information, it does not mean it does not "sell" personal information under the law, as it includes any exchange of personal information for valuable consideration, such as the exchange of consumer data between companies, or the sale of information to a University for study.
MISCONCEPTION 2: The Federal Government will stop it.
One of the main reasons we have the CCPA is because the Federal Government has not acted on this issue. Furthermore, there is a high likelihood that any Federal law will not be substantially different from the CCPA, keeping the core principles in place. It's also unlikely that such a law will take effect and be passed in the remaining five months before the CCPA begins enforcement. Companies must accept that ideals of transparency, choice, consent and reasonable security as they relate to consumers' personal information are here to stay.
MISCONCEPTION 3: California is still changing the law, so I should wait.
California is still in the process of fine-tuning the CCPA, but this is no reason to wait. Fixes to questions arising regarding the CCPA have come out piecemeal, and continued changes, including expansions are likely. For example, employees were previously not addressed specifically within the CCPA, but are being addressed in the planned AB 25, excluding employees from some of the CCPA's protections. Conversely, there have also been planned provisions to expand on the protections and enforcement mechanisms of the CCPA, including a broad and expansive private right of action to permit individuals to sue for technical violations of the statute, like having to wait too long for a response to the demand, even if no actual damage is suffered. Again, the foundational requirements of the CCPA will not change via amendment – so companies should act now.
MISCONCEPTION 4: It's too expensive.
Actually no. Many of the basic actions are not cost-prohibitive, and are actions a business would want to do anyways: (a) Employee training to avoid data breaches and how to respond to user requests; (b) data mapping to quickly find, access, and arrange protections for consumer data; and (c) ensuring you have reasonable cyber security. This can even be turned into a competitive advantage, as consumers increasingly value companies that share their interests, including their privacy.
A compliance mistake could be extraordinarily costly. Currently, a violation for statutory violations of the CCPA can carry a penalty between $2,500 to $7,500 per individual violation. Furthermore, there is a private right of action with statutory damages of $100 to $750 per individual violation that could quickly balloon to exceed $5 million at a minimum, and invites class action/lawsuits for a data breach.
While this is true of almost every legal risk, an ounce of prevention is worth a pound of cure. The penalties on the higher end of the spectrum are for willful violations, and attempts to comply with the law can act to curb potential risks.
What Should I Do?
If you feel CCPA compliance is important to your business, and decide to prepare for the CCPA with us, our firm has created a 90-day CCPA compliance program where our team will collaborate with you to determine a scalable, practical, and reasonable way for you to meet your needs, without breaking the bank. Let us provide you a free initial consultation to see if our CCPA compliance program works for you.
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.
Jeff Dennis is the head of the firm's Privacy & Data Security practice. Jeff works with the firm's clients on cyber-related issues, including contractual and insurance opportunities to lessen their risk. For more information on how Jeff can help, contact him at jeff.dennis@ndlf.com.
About Newmeyer Dillion
For 35 years, Newmeyer Dillion has delivered creative and outstanding legal solutions and trial results that align with the business objectives of clients in diverse industries. With over 70 attorneys working as an integrated team to represent clients in all aspects of business, employment, real estate, privacy & data security and insurance law, Newmeyer Dillion delivers tailored legal services to propel clients' business growth. Headquartered in Newport Beach, California, with offices in Walnut Creek, California and Las Vegas, Nevada, Newmeyer Dillion attorneys are recognized by The Best Lawyers in America©, and Super Lawyers as top tier and some of the best lawyers in California and Nevada, and have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949.854.7000 or visit www.newmeyerdillion.com.
Read the court decisionRead the full story...Reprinted courtesy of
South Africa Wants Payment From Colluding World Cup Builders
July 23, 2014 —
Kamlesh Bhuckory and Mike Cohen – BloombergSouth Africa’s government is putting pressure on construction companies to make further payments as punishment for rigging contracts to build stadiums for the 2010 FIFA Soccer World Cup and other projects.
Antitrust authorities fined 15 builders, including Murray & Roberts Holdings Ltd. (MUR) and Aveng Ltd., a total of 1.5 billion rand ($141 million) in June 2013, after a probe that spanned almost four years found they colluded to drive up prices.
“The 1.5 billion rand in penalties is not the end of the story with the construction industry,” Economic Development Minister Ebrahim Patel told lawmakers in Cape Town today. “We are now in discussion with the construction industry on a restitution package for their collusion and price fixing.”
Mr. Bhuckory may be contacted at kbhuckory@bloomberg.net; Mr. Cohen may be contacted at mcohen21@bloomberg.net
Read the court decisionRead the full story...Reprinted courtesy of
Kamlesh Bhuckory and Mike Cohen, Bloomberg
Embracing Generative Risk Mitigation in Construction
February 12, 2024 —
Georgia Stillwell - Construction ExecutiveProject delays have long plagued the construction industry, with risk often identified as the primary culprit. However, finding effective solutions to mitigate risk on complex projects has remained daunting. Traditional methods for simulating risk primarily focus on extending project timelines, overlooking the diverse range of opportunities available for risk mitigation. With the construction industry’s digital transformation, generative methodologies have emerged to handle complex decision-making in uncertain situations. This article aims to shed light on the limitations of existing risk modeling and introduce a novel approach known as generative risk mitigation to enhance decision-making under deep uncertainty.
According to McKinsey, 98% of megaprojects experience cost overruns exceeding 30%. Project delays have become so pervasive that the industry has grown accustomed to them. For example, in 2022, the UK government issued ‘
The Green Book,’ which requires contingency funds in projects, such as a 44% contingency budget for standard civil projects. This implies that for a $100 million project, you should allocate $144 million to manage expected risks. There is no denying significant academic literature on the root cause of these delays: it is ‘risk,’ and there is an entire industry based on it.
Conversations with project directors and risk experts reveal the same issue, different project. And that issue is that we cannot easily forecast risk, qualify the impacts or fully understand the opportunities that exist to mitigate risks and make timely decisions. A method that will finally help us overcome this has emerged within the industry.
Reprinted courtesy of
Georgia Stillwell, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the court decisionRead the full story...Reprinted courtesy of
Manhattan Developer Wants Claims Dismissed in Breach of Contract Suit
August 27, 2014 —
Beverley BevenFlorez-CDJ STAFFThe Real Deal reported that Savannah, the developer of the condo conversion at 141 Fifth Avenue, “has filed to dismiss a number of claims in a $7.5 million breach of contract lawsuit by the property’s board of managers, while alleging professional negligence against several of its own contractors.”
Savanah’s lawyers stated, according to The Real Deal, that whether or not construction defects exist, their client isn’t responsible: “However to the extent that any of the alleged defects exist at the building, sponsor cannot be held liable for the existence of such defects.”
Read the court decisionRead the full story...Reprinted courtesy of
Empowering Success: The Advantages of Female Attorneys in Construction Defect Law
December 11, 2023 —
Alexa Stephenson, Hoosai Kabiri & Ivette Kincaid - Kahana FeldPer the most recent U.S. Census records, women make up 50.4% of the U.S. population. It should come as no surprise then that women currently outnumber men in U.S. law schools. Nevertheless, as of 2022, only 38% of attorneys, 30% of federal judges, 22% of equity partners, and 12% of managing partners nationwide are comprised of women. While great strides have been made in the last century to increase gender equality in the legal field, there is undoubtedly still a long way to go.
Studies have shown that women in the workforce lead to a number of benefits not only to the business itself, but to a business’ employees and culture. In the realm of construction defect law in particular, the presence and contributions of female attorneys have become increasingly impactful and essential. As the legal landscape evolves, the benefits of having female attorneys practicing in this specialized field are becoming more evident, offering a range of advantages that contribute to a more diverse, comprehensive, and successful legal environment. These advantages include:
1. Diverse Perspectives: Female attorneys bring a unique perspective to the practice of construction defect law, enriching the field with their insights and experiences. Their diverse backgrounds and viewpoints can lead to innovative strategies and fresh approaches when tackling complex legal issues.
Reprinted courtesy of
Alexa Stephenson, Kahana Feld,
Hoosai Kabiri, Kahana Feld and
Ivette Kincaid, Kahana Feld
Ms. Stephenson may be contacted at astephenson@kahanafeld.com
Ms. Kabiri may be contacted at hkabiri@kahanafeld.com
Ms. Kincaid may be contacted at ikincaid@kahanafeld.com
Read the court decisionRead the full story...Reprinted courtesy of
Construction Defect Coverage Barred Under Business Risk Exclusion in Colorado
February 14, 2013 —
CDJ STAFFA federal court in Colorado recently applied the business risk exclusion to a construction defect case. Aaron Mandel and Stevi Raab of Sedgwick Law discuss this in Construction Defect Coverage Quarterly. The court found that the business risk exclusion barred coverage for an underlying construction defect. In the construction defect case, the Creek Side at Parker homeowners association sued the developer and builder. One such alleged defect was that “the plumbing contractor’s faulty installation of sewer and water lines damaged the lines themselves, caused surrounding asphalt and concrete to crack and deteriorate, and resulted in water intrusion.”
The court concluded that this damage to non-defective work was an occurrence, but the exclusion in the contract covered only property damage that occurred “while the work is ongoing.” The court concluded that the business risk exclusion barred coverage.
Read the court decisionRead the full story...Reprinted courtesy of
