NTSB Issues 'Urgent' Recommendations After Mass. Pipeline Explosions
November 28, 2018 —
Tom Ichniowski – Engineering News-RecordThe National Transportation Safety Board has issued urgent safety recommendations in the wake of September’s natural-gas explosions and fires in the Merrimack Valley area of Massachusetts that killed one person and resulted in at least 21 others, including two firefighters, going to the hospital.
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Tom Ichniowski, ENRMr. Ichniowski may be contacted at
ichniowskit@enr.com
Building Supplier Sued for Late and Defective Building Materials
December 04, 2013 —
CDJ STAFFThe Lawson Henry Co. bought an unfinished townhome in Snowshoe, West Virginia with the intent of getting it finished and sold. To reach that goal, they contracted with O.C. Cluss Professional Services and O.C. Cluss Lumber Co. to provide them with building materials. According to the plaintiff, Cluss failed to deliver the building materials by the agreed-on date, causing the plaintiff to miss out on the peak season for selling the townhome.
The suit also alleges that in addition to materials being delivered late, some were defective or of poor quality. The Lawson Henry Co. is charging Charles C. Cluss and his companies of breach of contract.
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EPA Issues New PFAS Standard, Provides $1B for Testing, Cleanup of 'Forever Chemicals'
April 29, 2024 —
Tom Ichniowski & Debra K. Rubin - Engineering News-RecordThe Biden administration has announced a two-pronged initiative aimed to reduce exposure, through drinking water, to the “forever chemicals”—perfluoroalkyl and polyfluoroalkyl substances, known as PFAS, which have been linked to cancer and other health problems.
Reprinted courtesy of
Tom Ichniowski, Engineering News-Record and
Debra K. Rubin, Engineering News-Record
Mr. Ichniowski may be contacted at ichniowskit@enr.com
Ms. Rubin may be contacted at rubind@enr.com
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Anatomy of a Data Center
October 28, 2024 —
Robert A. James & Matt Olhausen - Gravel2Gavel Construction & Real Estate Law BlogTraditional and social media are thick with reports and predictions of the remarkable increase in size, power consumption and significance of data centers. Not only technology companies but real estate and energy developers, investment funds, lenders, and professionals of all stripes are in or determined to enter this sector. Our inboxes are full—it’s data center this, data center that.
But what exactly is a data center? What infrastructure, technology and human resources come together to create and sustain one of these localized points of computation? By understanding their components, we can glean some understanding of the business, public policy and (our focus) legal issues that arise before and during their operation.
In this article, we cite key characteristics of a reference Blackacre Data Center, with occasional glances at other (real) structures that offer variations on themes. Blackacre is a composite of several centers we have encountered in our law practice. These facilities differ widely in size, location and functions, so your mileage will vary.
Reprinted courtesy of
Robert A. James, Pillsbury and
Matt Olhausen, Pillsbury
Mr. James may be contacted at rob.james@pillsburylaw.com
Mr. Olhausen may be contacted at matt.olhausen@pillsburylaw.com
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One More Thing Moving From California to Texas: Wildfire Risk
June 19, 2023 —
Patrick Sisson - BloombergIn early January, Keith Elwell was doing one of the things he does best, swinging chainsaws to help save forests from wildfire. Amid groves of junipers and white oak trees, Elwell led a team of a half-dozen volunteers, clearing brush and dead limbs in Twin Springs Preserve in Williamson County, Texas, a 170-acre county preserve a 40-minute drive north of downtown Austin.
Set on the northeastern edge of Hill Country, a rolling, rocky landscape of natural springs and wild grasses, it’s also adjacent to Georgetown, the fastest-growing city in the United States according to US Census Bureau data. Once a small farming town, it’s now an Austin suburb of more than 75,000 people with 60 subdivisions under construction.
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Patrick Sisson, Bloomberg
Construction Defects Lead to “A Pretty Shocking Sight”
October 14, 2013 —
CDJ STAFFWalls black with mold. Grass growing on carpets. The board chair of the Penhorwood condos, Christine Burton, describes the photos as “a pretty shocking sight.” The residents were all evicted in 2011 and given only fifteen minutes to gather what possessions they could after the buildings were found to be structurally unsound. An attempt was made to stabilize the buildings, but they kept shifting and cracking, exposing the interiors to the elements.
The owners of the Fort McMurray condominium complex are suing the developer, contractor, and others for $60 million. Fort McMurray has ordered that the buildings be torn down, although the condo owners don’t have the funds for this. Even the funds for continuing the lawsuit are hard to come by. Ms. Burton notes “because of the evacuation and the cost of stabilizing the building so that we could go in and get people’s furniture and personal effect out has pretty much depleted our funds.” The owners “have no more money.”
The condo owners are hoping that they can sell the land where their former homes are in order to recoup some of their losses.
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Contract Provisions That Help Manage Risk on Long-Term Projects
June 29, 2020 —
Jason Lambert - Construction ExecutiveFew things can dampen the thrill and promise of a newly closed construction deal than the realization that it could quickly become a losing proposition for the contractor depending on economic and other conditions. In an era of instant information, constantly adjusting markets and political extremes, projects that start under one set of assumptions or conditions can occur or conclude under much different ones. While no one has a crystal ball, there are contractual provisions that can provide clear guidance in the face of many “what ifs” that can arise in construction.
One of the chief concerns a contractor should have in a project lasting more than a few months is what impact price increases will have on the profitability of the job. On a true cost-plus project, this may be of little concern, but on any project with a limitation on costs or a guaranteed maximum price, contractors should insist on a procedure to revisit the limitation or price if certain conditions change.
This can be as simple as allowing the contractor to receive an upward adjustment in the price if costs increase by more than a certain percentage. It can be as complicated as requiring multiple new bids and disclosures to the property owner, architect or project manager and allowing approval of new suppliers or subcontractors to limit cost increases to the cheapest increase. The protection—and certainty—to the contractor though, comes from having a process in the contract to address cost increases, whether it is simple or complex.
Reprinted courtesy of
Jason Lambert, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Lambert may be contacted at
Jason.lambert@dinsmore.com
The "Dark Overlord" Strikes The Practice Of Law: What Law Firms Can Do To Protect Themselves
April 17, 2019 —
Ivo G. Danielle – Newmeyer & DillionCybersecurity breaches involving law firms are on the rise with each passing year. Law firms are prime targets for cyber criminals seeking confidential and sensitive information because of the various types of legal work that law firms normally handle for their clients. Whether it be mergers and acquisitions, the use of intellectual property, purchase agreements, bankruptcy or even litigation involving divorce, law firms are a rich depository for highly confidential and sensitive information. As a result, law firms must employ comprehensive security measures to protect themselves from security breaches or risk being on the losing end of a costly malpractice claim, and suffer severe reputational harm.
Law Firms Continue To Be Targeted By Cybercriminals
According to the American Bar Association ("ABA") 2018 Legal Technology Survey Report, 23% of the law firms who participated in the survey reported that their law firm experienced a data breach. Although this may be just a 1% increase from the 22% who reported a breach in 2017, it is important to understand that this is an increase of 8% from the stable percentages reported from 2013 through 2016.1 The 2018 survey report also revealed that security breaches fluctuated with firm size – 14% for solo law firms, 24% for firms employing 2-9 attorneys, approximately 24% for firms with 10-49 attorneys, 42% for firms with 50-99 attorneys, and approximately 31% for those firms employing 100 or more attorneys.
Latest Law Firm Security Breaches
The notorious criminal group called "The Dark Overlord" has a history of committing data breaches of high profile companies such as Gorilla Glue, Netflix, Larson Studios, multiple healthcare companies, and Little Red Door Cancer Agency. Their goal is simple – steal sensitive information and then extort payment from the victims by threatening to release the sensitive information to the public.
On December 31, 2018, this cybercriminal group announced to the world that they had acquired 18,000 documents containing highly sensitive legal information related to insurance based litigation connected to the 9/11 tragedy. The stolen information was the attorney/client property of Lloyd's of London, Silverstein Properties, and Hiscox Syndicates, Ltd. In its announcement, The Dark Overlord boasted that they were in possession of client sensitive information, such as: "emails; retainer agreements; non-disclosure agreements; settlements, litigation strategies; liability analysis; defense formation; collection of expert witness testimonies; communication with government officials in countries all over the world; voice mails; dealings with the FBI, USDOJ, DOD, confidential communications, and so much more."
Subsequent to the data breach, The Dark Overlord announced to the public that they designed a compensation plan that would allow for public crowd-funding for its organization to permit the public to view the stolen information in exchange for bitcoin payment. The more public funding it receives, the more stolen sensitive information will be unlocked and released to the public. It is estimated that this cybercriminal group already distributed information to the public on two separate occasions during the month of January 2019.
High profile cybersecurity breaches of law firms is nothing new – for example, the infamous Panama Papers breach, where cybercriminals leaked 11.5 million documents exposing the shadowy business of setting up offshore corporations as tax shelters for businesses, celebrities, and politicians - and the infamous Petya Malware attack which resulted in a digital lockdown of one of the world's largest law firms, DLA Piper. However, despite the infrequency of publicized cyber-attacks of law firms by the media, the FBI has recently announced that law firms should expect an increase in security attacks by cybercriminals because law firms are now viewed as "one-stop shops" for cybercriminals. Therefore, in order to combat the inevitable increase in cyber-attacks, law firms must get prepared.
How Law Firms Can Protect Themselves
All law firms will agree that the most serious consequence of a security breach for their firm would be the unauthorized access to sensitive client data. The American Bar Association's Model Rules of Professional Conduct, specifically Rules 1.1 and 1.62 and related Comments, require an attorney to take competent and reasonable measures to safeguard information relating to their clients. This duty to "safeguard' information imposes a significant challenge to firms when using technology in connection with protecting client information because most law firms are not savvy with technology and lack proper cyber security training.
In order for a law firm to protect itself from security breaches and inadvertently violate its duty of safeguarding a client's sensitive information, it is important to take the following actions:
- Start by taking an inventory and risk assessment of the firm to determine what needs to be protected – the inventory should include both technology and data;
- Develop, implement and maintain an appropriate cybersecurity program that complies with applicable ethical and legal obligations;
- Ensure the cybersecurity program addresses people, policies and procedures, and technology. The cybersecurity program must designate an individual or a group to be in charge and coordinate security;
- Develop an incident response plan scaled to the size of the firm;
- Continually train staff and attorneys to identify and understand potential cybersecurity threats;
- Consider implementing a third-party assessment of firm's cybersecurity program and policies;
- Purchase cyber liability for insurance which not only covers first party losses to law firms (like lost productivity, data restoration, and legal expenses) but also liability protection to third parties;
- Implement authentication and access controls for network, computers and mobile devices used by the firm's staff and attorneys;
- Consider the use of full-drive encryption for computers and mobile devices;
- Have staff and attorneys avoid and/or limit the use of public WiFi when working remotely; and
- Create a disaster recovery plan to backup all data in the event of a cyber-attack or natural catastrophe.
Continually reviewing, implementing, training and updating a firm's cybersecurity program and protocols will help safeguard sensitive and confidential client information and/or data. No law firm wants to be the next data breach headline – so take the necessary steps to avoid a potential disaster.
1 Past ABA Legal Technology Surveys reported 14% in 2016, 15% in 2015, 14% in 2014 and 15% in 2013.
2 On November 1, 2018, California adopted ethics rules patterned after the ABA Model Rules of Professional Conduct.
Ivo Daniele is a seasoned associate in Newmeyer & Dillion's Walnut Creek office. His practice includes representing private and public companies with both their transactional and litigation needs. You can reach Ivo at ivo.daniele@ndlf.com.
About Newmeyer & Dillion
For almost 35 years, Newmeyer & Dillion has delivered creative and outstanding legal solutions and trial results for a wide array of clients. With over 70 attorneys practicing in all aspects of business law, privacy & data security, employment, real estate, construction, insurance law and trial work, Newmeyer & Dillion delivers legal services tailored to meet each client's needs. 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 have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949.854.7000 or visit www.ndlf.com.
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