Cambridge Massachusetts Building Expert Directory

Attorney-Client Privilege in the Age of Cyber Breaches

October 18, 2021 — Shaia Araghi - Newmeyer Dillion
Investigations 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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Reprinted courtesy of Shaia Araghi, Newmeyer Dillion
Ms. Araghi may be contacted at shaia.araghi@ndlf.com

Sierra Pacific v. Bradbury Goes Unchallenged: Colorado’s Six-Year Statute of Repose Begins When a Subcontractor’s Scope of Work Ends

November 03, 2016 — Luke Mecklenburg – Snell & Wilmer Real Estate Litigation Blog
It’s official: the October 20, 2016 deadline to petition for certiorari to the Colorado Court of Appeals on its decision in Sierra Pacific Industries, Inc. v. Bradbury has passed, so it appears that decision will stand. In Sierra Pacific, the Court of Appeals held as a matter of first impression that the statute of repose for a general contractor to sue a subcontractor begins to run when a subcontractor’s scope of work is substantially complete, regardless of the status of the overall project. Sierra Pac. Indus., Inc. v. Bradbury, 2016 COA 132, ¶ 28, ___ P.3d ___. The Court of Appeals interpreted the statute of repose in C.R.S. section 13-80-104, which requires that “all actions against any architect, contractor, builder or builder vendor, engineer, or inspector performing or furnishing the design, planning, supervision, inspection, construction, or observation of any improvement to real property” must be brought within six years of substantial completion of that improvement. C.R.S. § 13-80-104(1)(a). Recognizing that “an improvement may be [to] a discrete component of an entire project” under Shaw Construction, LLC v. United Builder Services, Inc., 296 P.3d 145 (Colo. App. 2012), the Court of Appeals determined that “a subcontractor has substantially completed its role in the improvement at issue when it finishes working on the improvement.” Sierra Pac., 2016 COA at ¶¶ 20, 28. In doing so, it rejected Sierra Pacific’s argument that the statute could be tolled under the repair doctrine “while others worked to repair [the subcontractor’s] ‘improper installation work and flawed repair work.’” Id. at ¶ 29. Because six years had undisputedly passed since the subcontractor completed its scope of work when Sierra Pacific filed suit against it, the Court of Appeals affirmed the trial court’s order granting the subcontractor’s motion for summary judgment under Section 13-80-104(1)(a). Read the court decision
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Reprinted courtesy of Luke Mecklenburg, Snell & Wilmer Real Estate Litigation Blog
Mr. Mecklenburg may be contacted at lmecklenburg@swlaw.com

Standard For Evaluating Delay – Directly from An Armed Services Board Of Contract Appeal’s Opinion

October 04, 2021 — David Adelstein - Florida Construction Legal Updates
Sometimes, it is much better to hear it from the horse’s mouth. That is the case here. The Armed Services Board of Contract Appeal’s (ASBCA) opinion in Appeals of -GSC Construction, Inc., ASBCA No. 59402, 2020 WL 8148687 (ASBCA November 4, 2020) includes an informative discussion of a contractor’s burden when it encounters excusable delay and, of importance, the standard for evaluating delay. It’s a long discussion but one that parties in construction need to know, appreciate, and understand. EVERY WORD IN THIS DISCUSSION MATTERS. Construction projects get delayed and with a delay comes money because time is money. Many claims are predicated on delay. These can be an owner assessing liquidated damages due to a delayed job or a contractor seeking its costs for delay. Either way, the standard for evaluating delay and the burdens imposed on a party cannot be understated and, certainly, cannot be overlooked. For this reason, here is the discussion on evaluating delay directly from the horse’s mouth in the Appeal of-GSC Construction, Inc.:

The critical path is the longest path in the schedule on which any delay or disruption would cause a day-for-day delay to the project itself; those activities must be performed as they are scheduled and timely in order for the project to finish on time. Wilner v. United States, 23 Cl. Ct. 241, 245 (1991). In Yates-Desbuild Joint Venture, CBCA No. 3350 et al., 17-1 BCA ¶ 36,870, our sister board compiled an excellent and very helpful synopsis of the standards for evaluating delay claims, which I adopt nearly verbatim among the discussion that follows.

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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

California Statutes Authorizing Public-Private Partnership Contracting

February 01, 2022 — Robert A. James & Shade Oladetimi - Gravel2Gavel Construction & Real Estate Law Blog
Public-private partnerships are often cited as a key pathway to restoring and enhancing the nation’s infrastructure. They can be challenging arrangements to structure. (As a result of the pandemic, they have even suffered the indignity of having their “PPP” acronym coopted by the Paycheck Protection Program. With apologies to Small Business Administration practitioners, we use “PPP” in this article to refer to the infrastructure tool.) One gating condition to setting up a PPP is identifying the authority for a public entity to use a contracting method that does not run afoul of the general requirements that (i) works of improvement be let to the lowest responsive bid by a responsible bidder and (ii) design services be awarded through a qualifications-based selection process. Integrated forms of project delivery that vest in a single concessionaire multiple design, construction, financing, operation, maintenance and entrepreneurial roles must find an exception to any applicable background rules. Reprinted courtesy of Robert A. James, Pillsbury and Shade Oladetimi, Pillsbury Mr. James may be contacted at rob.james@pillsburylaw.com Ms. Oladetimi may be contacted at shade.oladetimi@pillsburylaw.com Read the court decision
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No Coverage For Construction Defects When Complaint Alleges Contractual Damages

September 01, 2011 — Tred R. Eyerly - Insurance Law Hawaii

The underlying plaintiff’s allegations contended the contractor was in breach of contract for construction defects caused in building her home. Accordingly, the court found no coverage.See Nat’l Builders and Contractors Ins. Co. v. Slocum, 2011 U.S. Dist. LEXIS 81694 (S.D. Miss. July 26, 2011).

Slocum Construction LLC sold a home it built to Laura Peterson. Subsequently, Peterson filed suit, alleging a breach of the contract and seeking rescission and cancellation of the contract. Peterson further alleged at least thirty-three specific defects in the construction of the house.

Slocum tendered to its insurer, National Builders and Contractors Insurance Company (NBCI). NBCI filed suit for a declaratory judgment.

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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com

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The 2021 Top 50 Construction Law Firms™

June 14, 2021 — Cybele Tamulonis - Construction Executive
Vaccination 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. Read the court decision
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Quick Note: Staying, Not Dismissing, Arbitrable Disputes Under Federal Arbitration Act

July 31, 2024 — David Adelstein - Florida Construction Legal Updates
As you hopefully know from posted articles, arbitration is a creature of contract. Stated differently, there must be a contractual basis to have a dispute resolved through binding arbitration. The Federal Arbitration Act (FAA) applies to transactions involving interstate commerce. Oftentimes, lawsuits are filed despite an arbitration provision in a contract because parties can, if they desire, waive their rights to have their dispute resolved through binding arbitration. In what should not be a shocker, the United States Supreme Court in Smith v. Spizzirri, 144 S.Ct. 1173, 1178 (2024), held that when a federal “district court finds that a lawsuit involves an arbitrable dispute, and a party requests a stay pending arbitration, section 3 of the FAA compels the court to stay the proceeding.” Dismissing the lawsuit should not be the option. Staying the lawsuit should. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

New York’s Highest Court Gives Insurers “an Incentive to Defend”

November 20, 2013 — CDJ STAFF
The New York Court of Appeals, that state’s highest court, has ruled that when an insurer disclaims duty to defend, “if the disclaimer is found bad, the insurance company must indemnify its insured for the resulting judgment, even if policy exclusions would have otherwise negated the duty to indemnify.” The insurer who makes a failed claim that there was no duty to defend cannot thereafter claim exclusions. This recent New York decision is discussed by Allen R. Wolff and Eric R. Reed of Anderson Kill in their Policyholder Advisor. They note that the decision “confirms that the estoppel rule applies in New York , as it does in at least four other states.” But this may not be the last word. American Guarantee made a motion for reargument, which the court granted. The case will return to the court in January 2014. They note that “if paying defense costs is the only consequence an insurance company faces for breaching its duty to defend the insured, an insurance company has a financial incentive to ‘kick the can down the road.’” Read the court decision
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