Responding to Ransomware Learning from Colonial Pipeline
June 07, 2021 —
J. Kyle Janecek - Newmeyer DillionRecently, ransomware has taken to the forefront in national news. The most prevalent ransomware attack, the one perpetrated against Colonial Pipeline by the now-defunct "Dark Side" hackers, has served to remind businesses about the risks of ransomware. What happened to Colonial Pipeline? What should businesses do to learn from Colonial Pipeline's response? What should a business avoid?
What happened to Colonial Pipeline?
Colonial Pipeline, a Georgia based operator of fuel pipelines, had its billing software compromised by Dark Side's ransomware attack.1 Following this, Colonial Pipeline took proactive measures to (1) shut down their systems; (2) evaluate the issue; and (3) safely brought systems back on line after ensuring that they were not compromised.
Following this, Colonial Pipeline did eventually pay the 4.4 million dollar ransom demand from Dark Side. What it got in return was a decryption key, as promised, which ended up being slower than Colonial Pipeline's own backups.2 The ultimate result of this event being an initial cost of $4.4 million, in addition to lost profits, additional security costs, reputational costs, and litigation costs as consumers had filed a class-action lawsuit to hold Colonial Pipeline accountable for their perceived lapse in security.3 Further, the fall-out from Colonial Pipeline had prompted additional cybersecurity efforts and changes by the Biden administration, including proposed regulations requiring pipeline companies to inform the Department of Homeland Security of cybersecurity incidents within 12 hours, in addition to keeping a cybersecurity coordinator on staff at all times, and reviews of current security measures.
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J. Kyle Janecek, Newmeyer DillionMr. Janecek may be contacted at
kyle.janecek@ndlf.com
2013 May Be Bay Area’s Best Year for Commercial Building
November 20, 2013 —
CDJ STAFFA tech boom has resulted in something of a commercial building boom for the Bay Area. The region will see about $6 billion in commercial construction projects during 2013. This is better than the totals for 2012, 2011, and 2009. During that period, however, 2010 set a record for the area with $6 billion of construction. Some estimates see 2013 beating that with as much as $6.7 billion in construction by year’s end.
The surge has been attributed to job creation. One Bay-area company, Infoblox, moved into a new office complex, after extensive renovation. The company had 250 employees and now has room to expand to 500 employees.
But 2014 could be even better. Apple is about to begin construction of its new campus, which is expected to cost the company $5 billion.
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New Mexico Architect Is Tuned Into His State
February 08, 2021 —
David M. Brown - Engineering News-RecordFor 40-plus years, Van Gilbert has combined his love for the topography, history and culture of New Mexico with an equally passionate dedication to designing not just structures, but buildings that help create communities.
Reprinted courtesy of
David M. Brown, Engineering News-Record
ENR may be contacted at ENR.com@bnpmedia.com
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Seven Proactive Steps to Avoid Construction Delay Disputes
September 29, 2021 —
Michael Pink - Construction ExecutiveDelays, cost overruns and disputes have long been part of the commercial construction industry, making the work of reactive forensic analysis by consultants and attorneys a necessary component. Yet many internal practices and issues within construction companies strongly correlate with projects that result in legal disputes and financial losses. There are seven proactive steps that can help companies minimize losses and claims.
Prepare a Cost- and Resource-Loaded Critical Path Method Schedule
This is the first step any contractor can take to establish and document a manpower plan, a timeline and an intended flow for its work. Doing so is beneficial for two reasons: it will become the basis for measuring impacts and variances to both cost and schedule in a delay, dispute or claim setting; and it will serve as a great project management resource or tool. Without thinking through manpower, durations and workflow in great detail at the beginning of the project, contractors put themselves at risk of becoming delayed and blowing the budget.
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Michael Pink, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Sixth Circuit Affirms Liability Insurer's Broad Duty to Defend and Binds Insurer to Judgment Against Landlord
September 07, 2020 —
Michael V. Pepe & Janie Reilly Eddy - Saxe Doernberger & VitaIn a victory for policyholders, the Sixth Circuit affirmed that a landlord’s insurer owed a duty to defend the landlord in a bodily injury claim arising out of a fire that killed three and injured one. The Court held that the insurer breached its duty to defend and was bound to the insured’s $3 million consented judgment.
Transition Investments LLC, an owner of three properties in the Detroit area, purchased a general liability insurance policy with Hamilton Specialty Insurance Company to insure its properties. At one of the properties, a faulty stove started a fire, destroying the building, injuring one person and killing three others. The estates of the deceased and the injured party sued Transition in Michigan state court. In their complaint, the plaintiffs contended that Transition failed to provide a habitable premise and neglected to maintain the property’s stove, which allegedly caused the fire. The plaintiffs argued that Transition’s negligent maintenance of the property led to the fire and the resulting injuries. Transition subsequently tendered the claim to Hamilton. Hamilton claimed that the insurance policy did not cover the fire’s damages and refused to participate in the state court litigation. Ultimately, Transitions entered into a consent judgment with the plaintiffs for $3 million.
Reprinted courtesy of
Michael V. Pepe, Saxe Doernberger & Vita and
Janie Reilly Eddy, Saxe Doernberger & Vita
Mr. Pepe may be contacted at mvp@sdvlaw.com
Ms. Eddy may be contacted at jre@sdvlaw.com
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Delaware Supreme Court Choice of Law Ruling Vacates a $13.7 Million Verdict Against Travelers
August 07, 2018 —
Gregory Capps & Zachery Roth - White and Williams LLPOn July 16, 2018, the Delaware Supreme Court held in Travelers Indemnity Company v. CNH Industrial America, LLC, No. 420, 2017 (Del. Jul. 16, 2018), that a court’s choice of law inquiry in an insurance coverage dispute should focus on the contacts most relevant to the insurance contract rather than the location of the underlying claims. In Travelers, CNH Industrial America, LLC (CNH), sought coverage for asbestos liabilities associated with J.I. Case, Inc., a subsidiary it had acquired, under policies issued to J.I. Case and its former parent company, Tenneco, Inc. The issue before the Delaware Supreme Court was whether the anti-assignment clause in three Travelers policies issued to Tenneco, Inc. precluded the assignment of the policies to CNH. The validity of the assignment turned on which state’s law governed the dispute. (Under Wisconsin law, the parties agreed that the assignment was valid, while under Texas law, the parties agreed the assignment was invalid.)
Reprinted courtesy of
Gregory Capps, White and Williams LLP and
Zachery Roth, White and Williams LLP
Mr. Capps may be contacted at cappsg@whiteandwilliams.com
Mr. Roth may be contacted at rothz@whiteandwilliams.com
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State And Local Bid Protests: Sunk Costs and the Meaning of a “Win”
July 11, 2022 —
Amy Anderson - ConsensusDocsAcross the United States, state and local agencies often use competitive bidding to award contracts for various types of work. Generally speaking, a bid protest is when an unsuccessful bidder challenges the award by the state or local agency to another competitive bidder. Procurement at this level is entirely distinct from federal procurement.
The details of any bid protest will be specific to the locality. However, a question that very often comes up when a state or local agency uses competitive bidding: what happens when I lose the bid? More specifically, if I should not have lost because my bid was the lowest or best value, can I make the state or local agency award the bid to me?
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Amy Anderson, Jones Walker LLP (ConsensusDocs)Ms. Anderson may be contacted at
aanderson@joneswalker.com
The Construction Lawyer as Counselor
June 10, 2019 —
Christopher G. Hill - Construction Law MusingsIt’s been a while since I discussed the role that I believe a construction lawyer should serve. Back in 2013, I discussed how those of us that practice construction law are seen as “necessary evils.” I was thinking over the weekend about certain clients and matters (as I often do, particularly in the shower) and came to the conclusion that the best role for me as a Virginia construction attorney is that of counselor and sounding board for my clients. Sure I come from a litigation background, enjoy working with other construction lawyers here in the Commonwealth, and often the first contact that I have with clients is when there is a problem, but I enjoy my practice, and I believe clients are more satisfied with their interactions with me when I try and provide a more cost effective and pragmatic solution than that which litigation or arbitration provides.
The six years of solo construction practice since 2013 (yes, I’m close to the 9 year mark with my practice) has only served to cement the fact that construction professionals need and want the “counselor” portion of “attorney and counselor at law.” Working as a sort of “in house counsel” to various construction companies, as opposed to simply dealing with the litigation, allows me to better understand their businesses and assist them in avoiding problems through contract review, discussions of situations that come up short of claims, and general risk management. I also get to know these mostly small business owners on a more personal level (sometimes even resulting in a fishing trip or two).
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com