Mitigating FCRA Risk Through Insurance
November 30, 2020 —
Sergio F. Oehninger, Geoffrey B. Fehling & Matt Revis - Hunton Insurance Recovery BlogAs reported in a recent Hunton Andrews Kurth client alert, Mitigating FCRA Risks in the COVID-19 World (Oct. 23, 2020), consumer litigation claims related to the Fair Credit Reporting Act (FCRA) doubled in the years leading up to the COVID-19 pandemic. After a slight decrease in FCRA filings due to court closures and other COVID-19 restrictions, claims will likely resume their previous upward trajectory. In fact, the Consumer Financial Protection Bureau (CFPB) has already seen an uptick in consumer complaints, many of which mention COVID-19 specific keywords.
Given the anticipated rise in FCRA complaints, the alert highlights the need for financial institutions and financial services companies to develop FCRA-compliant policies and procedures, including training on those policies and procedures, to mitigate the risk of FCRA-related enforcement actions and litigation claims, particularly in light of the regulatory changes relating to the COVID-19 pandemic.
Another important risk mitigation tool to consider is insurance, which can offer protection when even the most robust preventative measures fail to prevent an FCRA claim. Coverage for FCRA-related claims—often from directors’ and officers’ (D&O) or errors and omissions (E&O) policies—might be broader than one would initially expect. Policies may cover defense costs involving legal fees, as well as indemnification for damages.
Reprinted courtesy of
Sergio F. Oehninger, Hunton Andrews Kurth,
Geoffrey B. Fehling, Hunton Andrews Kurth and
Matt Revis, Hunton Andrews Kurth
Mr. Oehninger may be contacted at soehninger@HuntonAK.com
Mr. Fehling may be contacted at gfehling@HuntonAK.com
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ASCE Statement on Calls to Suspend the Federal Gas Tax
June 27, 2022 —
Tom Smith, Executive Director, American Society of Civil Engineers (ASCE)WASHINGTON, D.C. –
ASCE strongly opposes the recent announcement from the Biden Administration to suspend the current 18.4 cents-per-gallon federal gasoline tax for three months. Even at the same modest figure of 18 cents per gallon for over 25 years since 1993, the motor fuel tax has represented a reliable federal revenue source for communities to fix and modernize their network of roads, bridges, and transit systems.
Suspending the gas tax would result in the loss of billions in revenue from the Highway Trust Fund (HTF), significantly diminishing much of the progress made in the Bipartisan Infrastructure Law at a time when Americans expect improvements to the nation's roads, bridges, and transit systems. Replacing this lost revenue with funds from other sources is not a viable long-term solution and sets a damaging precedent. Encouraging states to follow suit will compound this bad idea and further exacerbate our nation's infrastructure funding challenges. Our transportation system, including roadways, bridge spans, and transit networks, can't rely on novel, unpredictable funding.
Further, there is little guarantee that motorists will see any real relief at the pump. Gas holidays aren't price controls; the manager at the gas station still gets to set their price. Oil producers have benefited significantly in the past from previous state-level gas tax holidays. There is no mechanism to ensure that these "savings" are passed on to consumers, but there is a virtual guarantee of disrupting transportation dollars and the HTF. While it sounds like an enticing solution when pocketbooks are strained, Congress knows that a variety of factors, including plain supply and demand, affect the prices that people see at fuel stations.
Now is the time to build on the momentum of the Bipartisan Infrastructure Law which, for the first time in decades, takes significant steps to revitalize our nation's aging infrastructure, improve public safety, strengthen our economy, and deliver well-paying jobs.
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Sioux City Building Owners Sue Architect over Renovation Costs
December 04, 2013 —
CDJ STAFFAccording to the architects, it should have cost a few hundred thousand dollars to strengthen the floors of Sioux City’s Badgerow Building. Instead, the upgrades cost somewhere between $3 and $5 million, which Mako One, the builder’s owners, said would have dissuaded them from starting had they known. Mako is suing M Plus Architects, for this and for its recommendation that the building’s windows be changed. That change ran foul of historic preservation guidelines, and the windows will have to be replaced.
M Plus is, in return, suing Mako One over $150,000 in unpaid bills. Meanwhile, a data center is moving in on the fourth floor.
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With Wildfires at a Peak, “Firetech” Is Joining Smart City Lineups
October 21, 2024 —
James P. Bobotek - Gravel2Gavel Construction & Real Estate Law BlogThe
threat of extreme wildfires has doubled in the past 20 years, with almost 20,000 fires blazing across the United States in 2024 alone. These high-intensity fires can be deadly, expensive, and create lingering health and environmental consequences. While we are used to seeing firefighters on the frontlines, researchers hope that next-generation smart technology, augmented by artificial intelligence (AI), will also play a key role in battling these conflagrations. Many municipalities, particularly those near wildfire-prone forests, are beginning to incorporate fire-focused advances (or “firetech”) into their smart city ecosystems.
“Smart cities” are urban centers enhanced by utilities, emergency services,
traffic signals and more that are linked through information and communications technology. Though the concept can spark cybersecurity-related concerns, many locales are gradually implementing many different kinds of smart tech. Following the 2023 wildfire that devastated Maui, for example, Hawaii installed a network of
cloud-based fire and wind sensors that use AI to detect wildfires in real time. Smart tools like these can aid in predicting and discovering fires, streamlining emergency alert protocols, calculating vital analytics and improving firefighter safety. The National Fire Protection Association (NFPA) is
actively studying these innovations, particularly in terms of environmental (smart buildings or robotics), operational (communications) and personnel (PPE sensors or biometrics). Below are a few of the key technologies to watch in this emerging field:
- Smart Sensors. A total of 80 sensors (64 wildfire sensors and 16 wind sensors) were placed throughout Hawaii starting in March of 2024. Attached to existing utility poles, they detect heat in the air, and then engage AI and smart learning to distinguish smoke particles and gases produced by fires from those commonly found in Hawaii’s atmosphere—such as volcanic ash and ocean salt. Positioned in “strings,” the sensors “talk” to each other and send text messages to officials when they find a problem.
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James P. Bobotek, PillsburyMr. Bobotek may be contacted at
james.bobotek@pillsburylaw.com
Wendel Rosen Attorneys Named as Fellows of the Construction Lawyers Society of America
October 26, 2017 —
Wendel Rosen Black & Dean LLP - California Construction Law BlogWendel Rosen is proud to announce that two of its attorneys, Garret Murai and Quinlan Tom, have been named as Fellows of the Construction Lawyers Society of America. CLSA, an invitation-only honors society, is limited to 1,200 construction attorneys worldwide. Garret and Quinlan serve as co-chairs of Wendel Rosen’s Construction Practice Group.
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City Covered From Lawsuits Filed After Hurricane-Damaged Dwellings Demolished
January 15, 2014 —
Tred R. Eyerly - Insurance Law HawaiiThe Fifth Circuit affirmed the District Court's finding that a duty to defend was owed St. Bernard Parish after it was sued for condemning and demolishing housing destroyed by Hurricane Katrina. Lexington Ins. Co. v. St. Bernard Parish Gov't, 2013 U.S. App. LEXIS 24292 (5th Cir. Dec. 6, 2013).
St. Bernard's policies with Lexington provided coverage for "property damage" and "personal and advertising injury." The policies included a $10,000,000 per occurrence and aggregate limit, subject to a $250,000 retained limit.
Lexington denied coverage and filed for a declaratory judgment that the policies' $250,000 retained limit applied separately to each alleged demolition or property damage asserted in the underlying actions. Under this theory, no defense would be owed because no property had a value exceeding $250,000. The District Court found that only one retained limit applied.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
"Your Work" Exclusion Bars Coverage for Contractor's Faulty Workmanship
December 02, 2015 —
Tred R. Eyerly – Insurance Law HawaiiThe West Virginia Supreme Court of Appeals found there was no coverage for the contractor's faulty workmanship in constructing a home. State of W. Virginia ex rel. Nationwide Mut. Ins. Co. v. The Honorable Ronald E. Wilson, 2015 W. Va. LEXIS 963 (W. Va. Oct. 7, 2015).
In July 2009, Fred Hlad contracted to build a home for the Nelsons and complete construction by November 2009. The Nelsons sued when the house was not timely completed. Nationwide defended under a reservation of rights, but then filed a declaratory judgment action.The circuit court denied Nationwide's request for declaratory relief, determining that the defective workmanship was an "occurrence." Nationwide petitioned the Supreme Court for a writ of prohibition.
On appeal, Nationwide argued that eight of the nine counts in the Nelsons' complaint were not caused by his defective workmanship. These allegations included breach of contract claims and intentional torts. Nationwide submitted it was not obligated to indemnify Hlad for damages that may be recovered on those counts. The court agreed that Nationwide's duty to indemnify was limited only to those claims that triggered coverage. Accordingly, Nationwide had no duty to indemnify for the eight counts alleging breach of contract and intentional torts.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
San Francisco International Airport Reaches New Heights in Sustainable Project Delivery
November 21, 2022 —
Aileen Cho - Engineering News-RecordTen years ago, Geoff Neumayr decided he was tired of “doing design and construction by combat.” San Francisco International Airport had completed a master plan for the complex and the front of the airport facilities doing things the traditional way.
Reprinted courtesy of
Aileen Cho, Engineering News-Record
Ms. Cho may be contacted at choa@enr.com
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