Cambridge Massachusetts Building Expert Directory

Mitigating FCRA Risk Through Insurance

November 30, 2020 — Sergio F. Oehninger, Geoffrey B. Fehling & Matt Revis - Hunton Insurance Recovery Blog
As reported in a recent Hunton Andrews Kurth client alert, Mitigating FCRA Risks in the COVID-19 World (Oct. 23, 2020), consumer litigation claims related to the Fair Credit Reporting Act (FCRA) doubled in the years leading up to the COVID-19 pandemic. After a slight decrease in FCRA filings due to court closures and other COVID-19 restrictions, claims will likely resume their previous upward trajectory. In fact, the Consumer Financial Protection Bureau (CFPB) has already seen an uptick in consumer complaints, many of which mention COVID-19 specific keywords. Given the anticipated rise in FCRA complaints, the alert highlights the need for financial institutions and financial services companies to develop FCRA-compliant policies and procedures, including training on those policies and procedures, to mitigate the risk of FCRA-related enforcement actions and litigation claims, particularly in light of the regulatory changes relating to the COVID-19 pandemic. Another important risk mitigation tool to consider is insurance, which can offer protection when even the most robust preventative measures fail to prevent an FCRA claim. Coverage for FCRA-related claims—often from directors’ and officers’ (D&O) or errors and omissions (E&O) policies—might be broader than one would initially expect. Policies may cover defense costs involving legal fees, as well as indemnification for damages. Reprinted courtesy of Sergio F. Oehninger, Hunton Andrews Kurth, Geoffrey B. Fehling, Hunton Andrews Kurth and Matt Revis, Hunton Andrews Kurth Mr. Oehninger may be contacted at soehninger@HuntonAK.com Mr. Fehling may be contacted at gfehling@HuntonAK.com Read the court decision
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Indemnity: What You Don’t Know Can Hurt You!

September 19, 2022 — Caitlin Kicklighter & Bill Shaughnessy - ConsensusDocs
Risk allocation between the parties is a critical component of any construction contract. Indemnity obligations can be some of the important risk-shifting provisions of any design or construction contract. Indemnity provisions typically require one party, the Indemnitor, to agree to “hold harmless,” and/or reimburse another party, the indemnitee, from claims and liability arising out of the party’s work. Considering the financial consequences that an indemnity provision can have on a construction project, it is critical that all parties to a construction contract know the legal implications of the contract indemnity provisions and understand any limitations in enforcing the indemnity provisions depending on the controlling jurisdiction. While most indemnity clauses and obligations are enforceable, many states have enacted anti-indemnity statutes prohibiting or restricting specific indemnification provisions. These anti-indemnity statutes afford protection to contractors and subcontractors not generally in a position to protect themselves from overly extensive indemnity obligations. This article highlights several examples of indemnity provisions typically seen in construction contracts, the measures are taken by a growing number of states to protect parties with less bargaining power in the form of anti-indemnity statutes, and offers practical considerations when negotiating or drafting indemnity provisions.[1] Reprinted courtesy of Caitlin Kicklighter, Emory Law Student (2024 Graduate), (ConsensusDocs) and Bill Shaughnessy, Jones Walker LLP (ConsensusDocs) Mr. Shaughnessy may be contacted at bshaughnessy@joneswalker.com Read the court decision
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Four Things Construction Professionals Need to Know About Asbestos

September 23, 2019 — Daniel King - Construction Executive
Although asbestos had its heyday in America half a century ago, asbestos exposure remains a major health risk and financial liability for construction professionals. One study estimates that at least 1.3 million construction industry workers are still at risk for occupational asbestos exposure. Up until the 1980s, U.S. manufacturers mixed asbestos into thousands of construction products. Asbestos is a unique mineral that can be worked into flexible fibers while still retaining its durability and heat resistance. Unfortunately, the fibrous nature of asbestos also makes it highly toxic. This article provides an overview of what construction professionals need to know about asbestos, including:

potential long-term health consequences of asbestos exposure for workers and short-term financial consequences for employers;
Occupational Safety and Health Administration asbestos regulations;
how to identify and safely remove asbestos-containing materials; and
what people should do if they have a history of asbestos exposure.

Reprinted courtesy of Daniel King, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Mr. King may be contacted at dking@asbestos.com

The Trend in the Economic Loss Rule in Construction Defect Litigation

January 14, 2015 — Beverley BevenFlorez-CDJ STAFF
Heather Howell Wright of Bradley Arant Boult Cummings LLP, analyzed the Massachusetts Supreme Court decision in Wyman v. Ayer Properties, LLC, which ruled that the “economic loss rule is not applicable to the damage caused to the common areas of a condominium building as a result of the builder’s negligence.” Wright compared Wyman to last year’s Florida Supreme Court case, Tiara Condominium Association v. Marsh & McLennan Companies that decided “that the economic loss rule did not preclude a condominium association from asserting a negligence claim against a contractor for defective work.” Wright concluded that “[t]he Wyman decision is another ruling in a growing line of cases where courts have limited application of the economic loss rule and have held that a contractor can be liable in tort for defective work.” Read the court decision
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Dealing with Abandoned Property After Foreclosure

April 10, 2019 — Bremer Whyte Brown & O'Meara LLP
California landlords must follow very specific steps before disposing of property that is clearly abandoned, left on real estate which has been the subject of court proceedings such as eviction or foreclosure, or otherwise left behind. Following the statutory procedures relating to abandoned property protects landlords from potential liability for an improper “conversion.” Former tenants/owners and others “reasonably believed” to be owners of the apparently abandoned personal property must be given proper written notice of the right to reclaim the abandoned property. The tenant is presumed to be the owner of any “records” remaining on the property. The California Code of Civil Procedure provides a template for such notice. The notice to be provided to former tenants/owners must be in “substantially” the same form provided in the California Code of Civil Procedure and must contain the following information:

A description of the abandoned property in a manner reasonably adequate to permit the owner of the property to identify it;
The location where the tenant can claim the property;
The time frame that the tenant has to claim the property. The date specified in the notice shall be a date not less than fifteen (15) days after the notice is personally delivered or, if mailed, not less than eighteen (18) days after the notice is deposited in the mail;
A statement that reasonable storage costs will be charged to the tenant/owner and the tenant/owner must pay those costs before claiming the property; and

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Reprinted courtesy of Bremer Whyte Brown & O'Meara LLP

Why Are Developers Still Pouring Billions Into Waterlogged Miami?

November 30, 2016 — James Tarmy – Bloomberg
On Sunday, an ebullient procession of artists, performers, and city residents filled Collins Avenue between Miami Beach’s 32nd and 36th streets to inaugurate the Faena Forum, a 43,000--square-foot, $150 million, performing- and visual-arts space that’s the cultural centerpiece of the Faena District, a $1 billion development comprising luxury hotels, restaurants, and real estate. The complex is the brainchild of Alan Faena, an Argentinian fashion designer-cum-developer known for his all-white outfits, and Len Blavatnik, a Ukrainian born, New York-based billionaire whose net worth is estimated by Bloomberg Billionaires to be $18.6 billion. The parade/carnival/performance was was titled “Side by Tide,” which might be an overly optimistic assessment of Miami Beach's sea level. With "king tides" flooding parking garages and a University of Miami study reporting that Miami Beach has seen a 200 percent increase in flooding in the last decade, the tide isn’t on anyone’s side. It’s already beneath the city, seeping upward, often as not, through the ground’s porous limestone and into buildings’ backlogged storm drains. Aside from ruining the undercarriages of residents’ Porsches, this ground-up flooding has a second, perhaps more deleterious effect on the long-term feasibility of Miami Beach: Normal defenses against a rising ocean—such as sea walls or dykes—are useless. Read the court decision
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Reprinted courtesy of James Tarmy, Bloomberg
Mr. Tarmy may be followed on Twitter @jstarmy

Industry News: New Partner at Burdman Law Group

March 30, 2016 — Burdman Law Group
Burdman Law Group, a boutique civil litigation law firm with offices in California, Nevada, and Arizona, is pleased to announce that Pieter M. O’Leary, was named a Partner in January 2016. Mr. O’Leary is an experienced litigator who has represented individuals and businesses in both state and federal court in actions involving breach of contract, negligence, construction, fraud, product defect, and business torts. Read the court decision
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No Rest for the Weary: Project Completion Is the Beginning of Litigation

June 18, 2019 — Albert Li & Bob Fitzsimmons - Construction Executive
In today’s environment, most construction projects end up in some form of litigation. Construction is full-time employment for lawyers – from contract negotiation to project management, lien and payment issues. Years after project completion, a company still can face construction defect litigation and be served with a Notice of Opportunity to Repair, which in most states is now codified into statute. This is the beginning of what most likely will become a lawsuit, involving many of the subcontractors. Watch Out for the Construction Contract Blame Game The first phase of post construction litigation involves the review of contract and insurance policy language in an attempt to transfer responsibility in the litigation to other parties. Before construction began, contract negotiation focused on budget and timeline. In the post-construction phase, two less noticed provisions of the contract are critical – indemnity and insurance. Reprinted courtesy of Albert Li & Bob Fitzsimmons, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Mr. Fitzsimmons may be contacted at rfitzsimmons@rumberger.com Mr. Li may be contacted at ali@rumberger.com Read the court decision
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