Judge Tells DOL to Cork its Pistol as New Overtime Rule is Blocked
November 23, 2016 —
Evelin Y. Bailey – California Construction Law BlogEarlier this year we informed you that the federal Department of Labor intended to raise the minimum salary for individuals classified as executive, administrative, and professional (“white collar”) exempt employees. The result? About 4.2 million workers classified as exempt would become eligible for overtime pay on December 1, 2016, the effective date of the new rule. Businesses would need to pay $47,476 starting on December 1, 2016 to maintain the exempt status of workers.
However, a combination of business groups and states sued to invalidate the regulation, requesting expedited and emergency injunctive relief.
On November 22, 2016, a federal district court in Texas granted the emergency motion for a preliminary injunction barring the DOL from enforcing its new overtime rule. The injunction will remain until the resolution of this legal challenge to the rule.
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Evelin Y. Bailey, California Construction Law BlogMs. Bailey may be contacted at
ebailey@wendel.com
Failure to Timely File Suit in Federal Court for Flood Loss is Fatal
June 29, 2017 —
Tred R. Eyerly - Insurance Law HawaiiAlthough the insureds timely filed their suit for denial of flood benefits in state court, the Fourth Circuit found the lawsuit against the Insurer was untimely because it was not filed in federal district court. Woodson v. Allstate Ins. Co., 2017 U. S. App. LEXIS 7862 (4th Cir. May 3 , 2917).
Hurricane Irene struck the insureds' house in August 27, 2011. Their property was flooded and for several hours, subjected to wave action, allegedly causing further damage to the home. The insureds contacted Allstate, who retained Rimkus Consulting Group, Inc. to inspect the property. Rimkus found that, other than a substantial loss of soil washed away around the supporting portion of the house, there was no damage to the structure of the house. Rimkus recommended reimbursement of $1200 for the washed out soil.
The insureds retained House Engineering, P.C., which submitted a report describing substantial damage caused by the hurricane, including movement to the pilings that caused the house to no longer be level. The insureds claimed $228,822 in damages.
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Tred R. Eyerly - Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Nevada Legislature Burns Insurers' Rights to Offer Eroding Limits
August 28, 2023 —
William S. Bennett - Saxe Doernberger & Vita, P.C.Nevada’s legislature recently passed a groundbreaking law imposing two prohibitions on insurers. First, the law prohibits insurers from issuing or renewing any liability insurance policy with an “eroding limits” provision. While the first section of the law will have the most immediate effects, the statute goes further, generally prohibiting insurers from limiting the availability of coverage for the costs of defense, legal costs and fees, and other claim expenses. This second section leaves a great deal to interpretation, with the potential to massively expand policyholder rights, and may throw the traditional structure of liability insurance policies into question.
Nevada Statute §679a provides as follows:
Notwithstanding any other provision of law, an insurer, including, without limitation, an insurer listed in NRS 679A.160, shall not issue or renew a policy of liability insurance that contains a provision that:
- Reduces the limit of liability stated in the policy by the costs of defense, legal costs and fees and other expenses for claims; or
- Otherwise limits the availability of coverage for the costs of defense, legal costs and fees and other expenses for claims.
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William S. Bennett, Saxe Doernberger & Vita, P.C.Mr. Bennett may be contacted at
WBennett@sdvlaw.com
Insurer's Denial of Coverage to Additional Insured Constitutes Bad Faith
May 21, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe insurer's unreasonable denial of a defense and indemnity to a lessor/additional insured was found to be in bad faith. Seaway Props. v. Fireman's Fund Ins. Co., 2014 U.S. Dist. LEXIS 55998 (W.D. Wash. April 22, 2014).
Seaway leased restaurant space to Ciao Bella Food, LLC. In January 10, 2010, the underlying plaintiff was on her way to the restaurant when she attempted to step down from a concrete platform between the building parking lot and the entrance to the restaurant. Seaway's lease gave Ciao Bella the right to use the common areas, including the parking lot, but did not grant Ciao Bella exclusive control over the common areas. The plaintiff suffered injuries and claimed both Ciao Bella and Seaway were liable.
Seaway's lease required Ciao Bella to maintain a CGL policy and to name Seaway as an additional insured. Ciao Bella did so by securing a policy with Fireman's Fund. Fireman's Fund had notice of the plaintiff's claim by November 2010. Seaway demanded in March 2012 that Fireman's Fund indemnify and defend it. In September 2012, two years after it first learned of the plaintiff's injury, Fireman's Fund denied coverage, asserting that Seaway was not an insured under the policy.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Formal Opinion No. 2020-203: How A Lawyer Is to Handle Access to Client Confidential Information and Anticipation of Potential Security Issues
December 07, 2020 —
Bremer Whyte Brown & O'Meara LLPRecently, the California Bar Association (“CBA”) published Formal Opinion No. 2020-203[1] concerning a lawyer’s ethical obligations with respect to unauthorized access to electronically stored client information. The onset of the COVID-19 pandemic greatly accelerated the growing trend of storing and maintaining data and information online so that employees and clients can access the data from anywhere in the world at any time. Now, in today’s working world, the reality is nearly all information and data is stored and shared digitally online for ease of access, use, and dissemination.
Unfortunately, a major draw-back of this switch to a cyber paradigm is serious exposure to data breaches as a result of hacking, inadvertence, or theft. Formal Opinion No. 2020-203 outlines how a lawyer is to handle access to client confidential information and anticipation of potential security issues. This article will briefly cover the key aspects addressed in Formal Opinion No. 2020-203.
What is the duty owed by a lawyer to his or her client regarding the use of technology?
At the outset, the CBA reminds lawyers of the ongoing duty of competence (Rule 1.1) and the duty to safeguard clients’ confidences and secrets (Rule 1.6; Cal. Bus. & Prof. Code, § 6068(e)) which impose the requirement that a lawyer must have a basic understanding of the risks posed when using a given technology and (if necessary) obtain help from appropriate experts to assess those risks and take reasonable steps to prevent data breaches.
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Bremer Whyte Brown & O'Meara LLP
Chinese Lead $92 Billion of U.S. Home Sales to Foreigners
July 09, 2014 —
John Gittelsohn – BloombergForeigners purchased $92.2 billion of U.S. homes in the 12 months through March, led by buyers from China, according to the National Association of Realtors.
Spending by Chinese buyers soared 72 percent from a year earlier to $22 billion, with their purchases accounting for 24 percent of spending by international buyers, the trade association said today from Washington. Total investments by foreigners jumped 35 percent.
Chinese buyers acquired 16 percent of houses sold to foreigners, up 4 percentage points, spurred by currency appreciation, rising affluence and concerns about an economic slowdown in the world’s most-populous country, the group said.
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John Gittelsohn, BloombergMr. Gittelsohn may be contacted at
johngitt@bloomberg.net
The 2021 Top 50 Construction Law Firms™
June 14, 2021 —
Cybele Tamulonis - Construction ExecutiveVaccination rates continue to rise, mandates are loosening for returning to work and school, and a $2 trillion infrastructure bill is looming on the horizon, but contractors remain cautious and counseled by the legal experts who thrive in the complex field of construction law.
According to the latest report by the Bureau of Labor Statistics, construction employment numbers did not move much in April despite an increased demand for housing and a recovering economy. Due to continued fallout from the pandemic—and what seems like no end in sight for the rising costs of materials—contractors have been turning to construction law firms to navigate delayed projects, interpret contract language, assist in risk mitigation and ensure the road ahead is paved with understandable and protective clauses.
For the 2021 survey for the annual U.S. ranking of The Top 50 Construction Law Firms™, Construction Executive’s editorial team reached out to dozens of attorneys at the nation’s best construction law firms to learn how the legal landscape is changing, as well as how legal teams are aiding clients with sharpening contract language and pivoting in response to challenges in the wake of the COVID-19 pandemic.
Reprinted courtesy of
Cybele Tamulonis, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Biden Administration Issues Buy America Guidance for Federal Infrastructure Funds
April 25, 2022 —
Garret Murai - California Construction Law BlogAs you know, late this past year Congress passed and President Biden signed the largest infrastructure bill since President Franklin D. Roosevelt’s “New Deal” in 1933. The infrastructure bill provides $1.2 trillion in spending on the nations’ infrastructure over the next five years.
On Monday, the Biden Administration issued Initial Implementation Guidance requiring that, beginning May 14, 2022, materials paid for with infrastructure bill funds be made in America. The Guidance, which implements the “Buy America” provisions of the infrastructure bill requires that:
1. All iron and steel used in a project be produced in the United States;
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com