The American Rescue Plan Act: What Restaurants Need to Act on NOW
March 22, 2021 —
Michael Krueger - Newmeyer DillionThe American Rescue Plan Act (“Act”) was passed by the Senate over the weekend and passed by the House today. President Biden is set to sign the Act into law on Friday, March 12th. The Act has $1.9 Trillion in relief funds with $28.6 Billion set aside for the restaurant industry in the Restaurant Revitalization Fund (“Fund”). The Fund has apportioned funds into two funding groups; $5 Billion for restaurants with annual gross revenue under $500,000 and $23.6 Billion for restaurants over $500,000 in annual gross revenue.
Differences from the Paycheck Protection Program (“PPP”)
This is a grant program with no loan documents or forgiveness applications. Instead, each restaurant entity can apply for and receive up to $10M in grant funds through the Act. The amount a restaurant receives is based on the sum of the restaurant’s gross revenue in 2019 minus the gross revenue in 2020 minus PPP and EIDL money received. For example, Restaurant A made $7M gross revenue in 2019, made $3M gross revenue in 2020 and received $1M in PPP and EIDL combined. ($7M - $3M -$1M =$3M) The restaurant will receive $3M in grant funds directly from the SBA (as long as funds are available).
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Michael Krueger, Newmeyer DillionMr. Krueger may be contacted at
michael.krueger@ndlf.com
Construction Delays for China’s Bahamas Resort Project
October 01, 2014 —
Beverley BevenFlorez-CDJ STAFFThe Wall Street Journal reported that the $3.5 billion resort and casino China’s building in the Bahamas is being undermined by delays and labor crashes, which is “dulling the buzz surrounding the venture and threaten to undermine China's future business.”
Once finished, the project “will include 2,200 new hotel rooms, luxury condominiums priced as high as $12 million, a 100,000-square-foot casino and an 18-hole golf course. Singer Lenny Kravitz is designing the nightclub.”
Baha Mar, the developers, told the Wall Street Journal that they will not be meeting their December 2014 deadline, and instead are “focused on late spring 2015.”
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Best Practices: Commercial Lockouts in Arizona
March 19, 2024 —
Patrick Tighe - Snell & Wilmer Real Estate Litigation BlogIf a tenant defaults under a commercial lease, Arizona law permits the landlord to re-take possession of the premises by locking out the defaulting tenant. However, if the landlord’s lockout is wrongful, the landlord may be liable for the damages the tenant sustains because of the wrongful lockout. To minimize such liability, here are some general best practices to follow when locking out a defaulting tenant:
- Do Not Breach the Peace. It is vital when performing a lockout to not breach the peace. What constitutes a “breach of the peace” depends on the particular circumstances at hand. For example, if a tenant arrives during the lockout and becomes angry or threatens violence, the landlord should stop performing the lockout and return at a later time. As a general rule of thumb, it is best to perform lockouts in the early morning hours or in the late evening hours when the landlord is less likely to encounter the tenant.
- Provide A Notice of Default. Many commercial leases require the landlord to provide a notice of default before the landlord can lock out a defaulting tenant. Check, double check, and triple check that the landlord followed the lease’s notice of default provisions correctly, including that the landlord sent the notices to all required parties in accordance with the time requirements set forth in the lease.
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Patrick Tighe, Snell & WilmerMr. Tighe may be contacted at
ptighe@swlaw.com
Court Grants Motion to Dismiss Negligence Claim Against Flood Insurer
December 22, 2019 —
Tred R. Eyerly - Insurance Law HawaiiThe insurer successfully moved to dismiss the insured's negligence claim and demand for jury trial, leaving only the insured's breach of insurance contract claim under the National Flood Insurance Program (NFIP). La Mirage Homeowners Association Inc. v. Wright National Flood Ins. Co., 2019 U.S. Dist. LEXIS 147667 (S.D. Tex. Aug 29, 2019).
Hurricane Harvey damaged three of insured homeowner's association condominium's buildings. Wright National Flood Insurance Company was the insurer pursuant to the NFIP when the hurricane damaged the insured's property. The insured alleged that Wright breached the policy by underpaying on the flood loss claims and by not initiating the appraisal the insured demanded. The insured sought recovery for negligence, consequential damage, statutory penalties, attorney's fees and pre-and-post judgment interest.
Wright moved to dismiss the extra-contractual claims and to strike the jury demand.
The NFIP's regulations allowed homeowners to purchase policies either directly from FEMA or from private insurers that functioned as Write Your Own (WYO) providers and fiscal agents of the United States. The Fifth Circuit had previously held that state law tort claims arising from claims handling by a WYO were preempted under federal law. The court, therefore, was faced with the issue of whether the insured's claims of negligence, attorney's fees, statutory penalties, and interest were policy-handling claims which were preempted by federal law.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Attorney-Client Privilege in the Age of Cyber Breaches
October 18, 2021 —
Shaia Araghi - Newmeyer DillionInvestigations and forensic reports relating to a cybersecurity breach may not always be protected by the attorney-client privilege or work product protection. Companies seeking such reports after a data breach must take caution to protect them from a possible waiver of privilege in the event of subsequent litigation relating to a data breach. The following recent cases highlight the potential waiver of privilege in light of the preparation of a forensic report.
- In re Capital One Consumer Data Security Breach Litigation, 2020 WL 3470261 (E.D. Va. June 25, 2020)
- After a data breach occurred, Capital One retained a law firm that later entered into an agreement with Mandiant for various cyber-related services (including incident remediation), which required that Mandiant provide deliverables to the firm, rather than to Capitol One. In re Capital One Consumer Data Security Breach Litigation, 2020 WL 2731238, at *1 (E.D. Va. June 25, 2020). Plaintiffs sought release of the report created by Mandiant (regarding the factors leading to the breach), arguing that it was prepared for business and regulatory purposes and therefore was not privileged, while Capital One argued that the report was privileged because it was prepared in anticipation of litigation. Ibid. The Court determined that Capital One did not carry its burden of establishing that the report was protected by the attorney work-product doctrine and ordered that Capital One produce the report. Id. at *7. In its reasoning, the Court stated that the fact that there is litigation does not, by itself, provide prepared materials with work-product protection. Ibid. The work-product protection applies when a party faces a claim following an event that may result in litigation, and the work product would not have been prepared in a substantially similar form but for the prospect of that litigation. Ibid.
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Shaia Araghi, Newmeyer DillionMs. Araghi may be contacted at
shaia.araghi@ndlf.com
Benefits to Insureds Under Property Insurance Policy – Concurrent Cause Doctrine
December 08, 2016 —
David Adelstein – Florida Construction Legal UpdatesThe Florida Supreme Court in Sebo v. American Home Assurance Co., Inc., 41 Fla. L. Weekly S582a (Fla. 2016) gave really good news to claimants seeking recovery under a first-party all-risk property insurance policy. The Court held that the concurrent cause doctrine and not the efficient proximate cause doctrine was the proper theory of recovery to apply when multiple perils—an excluded peril and a covered peril-combined to create a property loss.
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David Adelstein, Katz, Barron, Squitero, Faust, Friedberg, English & Allen, P.A.Mr. Adelstein may be contacted at
dma@katzbarron.com
Drastic Rebuild Resurrects Graves' Landmark Portland Building
September 14, 2020 —
Nadine M. Post - Engineering News-RecordFifteen minutes into a 105-minute job interview for the $195-million overhaul of the long-troubled Portland Public Service Building in Oregon’s largest city, owner’s rep Mike Day threw a curve ball to the unwitting design-build team of Howard S. Wright Construction Co. and architect DLR Group. Already hard at work solving Day’s first faux crisis scenario—a budget buster that threatened the viability of the makeover of the notoriously dysfunctional landmark—they had to regroup.
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Nadine M. Post, Engineering News-Record
Ms. Post may be contacted at postn@enr.com
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Nerves of Steel Needed as Firms Face Volatile Prices, Broken Contracts and Price-Gouging
December 06, 2021 —
Richard Korman, Jonathan Barnes, & Greg Aragon - Engineering News-RecordWhen Elmhurst Group, a Pittsburgh-area developer, started collecting bids for a new mixed-use building last November, the price of the steel frame, roof and cladding panels for the $14-million project came in $382,000 higher than expected—a big enough disappointment to give Elmhurst pause. Overall material costs for the project were running more than $650,000 above what was originally calculated.
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Richard Korman, Engineering News-Record,
Jonathan Barnes, Engineering News-Record and
Greg Aragon, Engineering News-Record
Mr. Korman may be contacted at kormanr@enr.com
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