Seattle Washington Building Expert Directory

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 LLP
Recently, 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. Read the court decision
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Reprinted courtesy of Bremer Whyte Brown & O'Meara LLP

CGL Coverage for Liquidated Damages and the Contractual Liability Exclusion

October 09, 2023 — Stu Richeson - The Dispute Resolver
Liquidated delay damages are common in construction contracts and are generally imposed when a contractor fails to achieve substantial completion within the time required by the contract. While contracts like the AIA A201-2017 have provisions for extending the time to achieve substantial completion when delays are caused by circumstances beyond the contractor’s control, delays can result from factors other than improper management or planning and the like, for which the owner is not required to give the contractor additional time. Courts are split on whether there is ever coverage under a CGL policy for contractually agreed upon liquidated delay damages. Liquidated delay damages are often excluded under the contractual liability exclusion of most CGL policies. The contractual liability exclusion excludes coverage for “liability for which the Insured is obligated to pay damages by reason of the assumption of liability in a contract or agreement.” Courts often find the contractual liability exclusion in a CGL policy precludes coverage for liquidated delay damages, because such damages are contractual in nature and are triggered by the failure to bring the contract to substantial completion by a fixed deadline, regardless of the cause of the delay. However, some courts will look to the cause of the delay and find that there is coverage under a CGL policy for liquidated delay damages that are the result of property damage caused by an accident or occurrence. In Clark Const. Grp., Inc. v. Eagle Amalgamated Serv., Inc., 01-2478-DV, 2005 WL 2092998, at *1 (W.D. Tenn. Aug. 24, 2005) a general contractor entered a contract for the renovation of the convention center in Memphis. Part of the project included the demolition of a structure attached to the convention center. The demolition work was improperly performed by a subcontractor and resulted in damage to the convention center. Read the court decision
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Reprinted courtesy of Stu Richeson, Phelps
Mr. Richeson may be contacted at stuart.richeson@phelps.com

Singapore Unveils Changes to Make Public Housing More Affordable

September 23, 2019 — Katrina Nicholas & Joyce Koh - Bloomberg
Singapore may increase its supply of public housing next year as the city-state introduced measures Tuesday aimed at making such homes more affordable. Minister for National Development Lawrence Wong said the measures would help more Singaporeans from lower to upper-middle income households buy their first homes. The Housing & Development Board, which is the body responsible for public housing, would probably have to increase supply in 2020 to meet the additional demand expected to stem from the changes, according to a joint statement from MND and HDB. Read the court decision
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Reprinted courtesy of Katrina Nicholas & Joyce Koh, Bloomberg

From Both Sides Now: Looking at Contracts Through a Post-Pandemic Lens

August 03, 2020 — Lori S. Smith - White and Williams
A little over a year ago, I wrote a blog post about the danger of relying on precedent. Now, more than ever, clients and their advisors need to revisit contract forms on which they may have been relying for years. While many of us have lived through times that required certain adjustments in how we viewed contractual obligations — recessions, wars, oil embargoes, natural disasters, 9/11 — none of these events had the widespread and long-lasting impact that the current COVID-19 pandemic is having. None of these events shut down the U.S. economy and impacted global supply chains across every industry in the manner we are now experiencing. With this in mind, there is a need to figure out what the “new normal” will look like for contract negotiations in a post-pandemic world. Business professionals need to now anticipate more widespread disruption than we could have ever before imagined. It isn’t just force majeure clauses or material adverse effect provisions, as these will likely add pandemics and government shutdowns to their ever-growing list of contemplated risks, if they were not already expressly covered. And it is not clear, at least in the near-term, whether a resurgence or mutation of COVID-19 or the emergence of another virus can truly be seen as unforeseeable in a post-COVID world. The issues are much more fundamental to the approach that parties may take in negotiating contracts. Commercial contracts between purchasers, vendors, distributors, licensors and licensees will need to evaluate allocation of risk from both sides and come to a new happy medium that all can live with in an ever-evolving world. While parties should review their standard contracts in their entirety, some key provisions to think about include:

Length of the contract and exclusivity. Depending on which side you are on, you may want to reconsider a long-term arrangement that ties your company to a particular vendor or distributor. Supply chain disruption can have a seriously detrimental impact on your business. Are requirements contracts where a particular supplier is required to make available all of your needs for a certain good or service really the best arrangement for your business? What about take or pay arrangements where you are obligated to which are common in certain industries pay a minimum amount or a penalty to a supplier whether or not you actually purchase the contemplated volume of goods ? Do you really want to be tied up in an exclusive arrangement, or do you need flexibility to maintain secondary or tertiary sources of supply? Do you want to provide a licensee with an exclusive right to your technology (even within a limited field of use or industry sector)?

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Reprinted courtesy of Lori S. Smith, White and Williams
Ms. Smith may be contacted at smithl@whiteandwilliams.com

Traub Lieberman Partners Ryan Jones and Scot Samis Obtain Affirmation of Final Summary Judgment

February 28, 2022 — C. Ryan Jones & Scot E. Samis - Traub Lieberman
Traub Lieberman Partners Ryan Jones and Scot Samis recently obtained affirmation of final summary judgment in favor of a windstorm and general insurance provider (“Insurer”) in the Florida First District Court of Appeal. The Appellant, a restoration service provider (“Restoration Service”), provided emergency mitigation services in the wake of hurricane damage to a residential home that was covered by an insurance policy issued by the Insurer. The Restoration Service invoiced the Insurer and, following an investigation, the Insurer paid a portion of the invoiced amount and invoked the policy’s appraisal clause to resolve the dispute over the difference. The Restoration Service brought suit against the Insurer, arguing that the appraisal process did not apply to mitigation services. The Insurer countered that it was entitled to resolve the claim by appraisal and, following arguments, the Court determined that the appraisal provision applied to mitigation services. Reprinted courtesy of C. Ryan Jones, Traub Lieberman and Scot E. Samis, Traub Lieberman Mr. Jones may be contacted at rjones@tlsslaw.com Mr. Samis may be contacted at ssamis@tlsslaw.com Read the court decision
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No Global MDL for COVID Business Interruption Claims, but Panel Will Consider Separate Consolidated Proceedings for Lloyds, Cincinnati, Hartford, Society

August 24, 2020 — Eric B. Hermanson & Konrad R. Krebs - White and Williams
In a widely anticipated ruling, the Judicial Panel on Multidistrict Litigation has denied two motions to centralize pretrial proceedings in hundreds of federal cases seeking coverage for business interruption losses caused by the COVID-19 pandemic. However, the Panel has ordered expedited briefing on whether four separate consolidated proceedings should be set up for four insurers – Cincinnati, Society, Hartford, and Lloyds – who appear to be named in the largest number of claims. In seeking a single, industry-wide MDL proceeding, some plaintiffs had argued that common questions predominated across the hundreds of pending federal suits: namely, [1] the question of what constituted ‘physical loss or damage’ to property, under the allegedly standardized terms of various insurers’ policies; [2] the question whether various government closure orders should trigger coverage under those policies, and [3] the question whether any exclusions, particularly virus exclusions, applied. Reprinted courtesy of Eric B. Hermanson, White and Williams and Konrad R. Krebs, White and Williams Mr. Hermanson may be contacted at hermansone@whiteandwilliams.com Mr. Krebs may be contacted at krebsk@whiteandwilliams.com Read the court decision
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Between Scylla and Charybids: The Mediation Privilege and Legal Malpractice Claims

August 19, 2015 — Garret Murai – California Construction Law Blog
I attended a mediation earlier this month in a real estate case. I won’t say more through because . . . well . . . it’s confidential. The confidentiality of mediations and of settlement discussions generally – the idea being that parties are more likely to resolve their differences if they can speak honestly and frankly with one another without fear that their words or actions can later be used against them in trial – has long been a hallmark of California law. But that may not be the case for long. In 2012, the California State Legislature directed the California Law Review Commission (“Commission”), the state agency responsible for recommending reforms to California law, to review and make recommendations regarding the relationship between California’s laws which make mediation discussions confidential and attorney malpractice. And it appears that the Commission will be reaching a recommendation soon. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

U.S. Home Lending Set to Bounce Back in 2015 After Slump

January 21, 2015 — Kathleen M. Howley – Bloomberg
The U.S. mortgage market hit bottom in 2014. Chief economists at Fannie Mae and Moody’s Analytics Inc. as well as the Mortgage Bankers Association all predicted a turnaround this year after a record decline in 2014. Read the court decision
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Reprinted courtesy of Kathleen M. Howley, Bloomberg
Ms. Howley may be contacted at kmhowley@bloomberg.net

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