What to do When the Worst Happens: Responding to a Cybersecurity Breach
November 21, 2018 —
Scott L. Satkin & J. Kyle Janecek – Newmeyer Dillion LLPCybersecurity is a growing concern for today's businesses. While it's always advisable to take whatever action possible to avoid a cybersecurity breach, no security measures can be one hundred percent perfect, and malicious actors are always innovating and trying to find new security flaws. The implementation of new technology brings with it new opportunities, but also potentially new vulnerabilities. And hackers have one major advantage – those working to defend against cyber-attacks have to try to find and fix every potential exploit, whereas those on the other side only need to find one. As demonstrated by recent high-profile breaches at Google and Facebook, even massive tech companies with access to vast financial resources and top engineering talent can still fall prey to cyber-attacks. Therefore, understanding how to respond to a breach is just as critical to a company's cybersecurity plan as attempting to prevent one. Below are a few solid tips on how to react when an organization's cybersecurity has been compromised.
Plan in Advance
The best response to a cybersecurity breach begins before the breach ever happens. A written incident response plan is of paramount importance. In the immediate aftermath of a cybersecurity breach, people will be scared and stressed. In those circumstances, they will be more likely to be able to respond effectively if there is a plan laid out for them and they have received training on how to follow that plan. Make sure that employees are trained on the parts of the plan that are relevant to them. Most may only need to know who to report to if they suspect a breach may have occurred, while those who will be involved in the breach response will need more in-depth training. The plan should also be updated regularly to account for staffing changes, new technology, and the evolving legal landscape. The law may also require a plan for responding to cybersecurity breaches, depending on the jurisdiction.
Call Your Lawyer- Early and Often
At the risk of sounding self-aggrandizing, attorneys are critical in responding to a cybersecurity breach. The most obvious reason is to advise clients on their legal obligations and potential liability – and this is indeed an important function. The patchwork of federal and state regulations governing cybersecurity is something laypeople – and even non-specialized attorneys – should navigate with caution. Of equal importance is the preservation of confidential communication under the attorney-client privilege. The presence of an attorney helps to improve the security of information surrounding the response to the breach because correspondence with that attorney is privileged, allowing candid evaluation of the breach. The ability to assert attorney-client privilege regarding an internal investigation and response can be quite useful in the event of a later external investigation or litigation.
To Disclose or Not to Disclose?
An important question that needs to be asked in the wake of a cybersecurity breach is whether the incident must be disclosed, and if so, when, how, and to whom should such disclosures be made? While many understandably wish that their mistakes and failures will never see the light of day, there are also many people who will want to know when a company's cybersecurity has been breached. Shareholders want to know – and may have a right to know – if such a breach has harmed the business. Consumers want to know if their personal information has been compromised so that they can protect against identity theft. Furthermore, state breach notification laws may mandate certain disclosures to consumers depending on facts surrounding the breach. Legal requirements from states, the federal government, and even foreign entities may also require companies to provide notices to one or more regulatory agencies.
An attorney can advise on whether a company is legally required to provide any notice in the aftermath of a data breach, but even though notice may not be a legal requirement in a particular set of circumstances, it may still be prudent to give it anyway. Google decided not to disclose the recent breach of data from its Google+ service to avoid a PR and regulatory backlash, but the fact that it had happened eventually leaked out anyway. Even though legal experts have opined in the aftermath that Google likely was not obligated to disclose the breach, the fact that it did not caused exactly what Google attempted to avoid, but with magnified effect. "Google Experiences Consumer Data Breach" may not have been a good headline, but "Google Hides Consumer Data Breach" was a worse one.
Remember: Protection Is Key
No company wants a cybersecurity breach, but past experience has increasingly demonstrated that this is not a question of "if" but rather one of "when" and "how bad." Planning ahead and knowing what to do when a data breach does happen can ensure that an organization bounces back from a breach as smoothly and painlessly as possible.
Scott Satkin and Kyle Janecek are associates in the Cybersecurity group of Newmeyer & Dillion. Focused on helping clients navigate the legal dispute implications of cybersecurity, they advise businesses on implementing and adopting proactive measures to prevent and neutralize cybersecurity threats. For questions on how they can help, contact Scott at scott.satkin@ndlf.com and Kyle at kyle.jancecek@ndlf.com.
About Newmeyer & Dillion
For more than 30 years, Newmeyer & Dillion has delivered creative and outstanding legal solutions and trial results for a wide array of clients. With over 70 attorneys practicing in all aspects of cybersecurity, business, employment, real estate, construction and insurance law, Newmeyer & Dillion delivers legal services tailored to meet each client's needs. Headquartered in Newport Beach, California, with offices in Walnut Creek, California and Las Vegas, Nevada, Newmeyer & Dillion attorneys are recognized by The Best Lawyers in America© and Super Lawyers as top tier and some of the best lawyers in California, and have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949.854.7000 or visit www.ndlf.com.
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Ohio Court Finds No Coverage for Construction Defect Claims
March 01, 2012 —
Tred R. Eyerly - Insurance Law HawaiiCharles and Valerie Myers hired Perry Miller to build their home. Myers v. United Ohio Ins. Co., 2012 Ohio App. LEXIS 287 (Ohio Ct. App. Jan. 26, 2012). After completion of the home, Miller was again hired to construct an addition which included a full basement, staircases, bathroom, bedroom, hallway and garage.
After the addition was completed, one of the basement walls began to crack and bow. Miller began to make repairs, but eventually stopped working on the project. Other contractors were hired to make repairs, but further problems developed. A second basement wall began to bow and crack, allowing water into the basement. The wall eventually had to be replaced. Subsequently, the roof over the addition began to leak in five or six places before the drywall could be painted. The leaks caused water stains on the drywall and cause it to separate and tear. It was discovered the roof needed to be replaced.
The Myers sued Miller and his insurer, United Ohio Insurance Company. The trial court ruled that the policy did not provide coverage for faulty workmanship, but did provide coverage for consequential damages caused by repeated exposure to the elements. United Ohio conceded liability in the amount of $2,000 to repair water damage to the drywall. United Ohio was also found liable for $51,576, which included $31,000 to repair the roof and ceiling and $18,576 to replace the basement wall.
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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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Facts about Chinese Drywall in Construction
September 10, 2014 —
William M. Kaufman – Construction Lawyers BlogMost of us have heard that there are problems with Chinese drywall, but do not really know what specifically is wrong with it when it comes to construction in the United States.
Let’s begin with a brief overview about why Chinese drywall came to be used in the United States in the first place. Chinese drywall was first imported into the United States beginning in 2001. Most of the homes that have Chinese drywall were built between 2001 and 2008. During the construction boom, Chinese drywall was being imported into the U.S. partly due to the shortage of American-made drywall as a result of several hurricanes that devastated Florida in 2004-2005, and the damage caused by Hurricane Katrina. Hundreds of millions of pounds of Chinese drywall were imported into the United States during that time period. While this is only a fraction of the percentage of drywall used in American homes, the problem has been concentrated in certain regions of the country, mostly the South.
So what is the problem with Chinese Drywall? To understand it, we must first explore what constitutes drywall. Drywall is a building material made of a gypsum-based sheet of plaster covered with heavy paper on both sides. Drywall is also referred to as plasterboard or sheetrock. Testing of Chinese drywall has found unusually high instances of pyrite. There is speculation that the pyrite oxidation results in sulfur compounds being released by the drywall during periods of high heat and humidity. The combination of high temperatures and humidity is ripe for bringing out problems associated with Chinese drywall. That is why most cases associated with Chinese drywall are found in the Southeastern United States. Reports show that homeowners typically complain of corroding copper in their homes, and a rotten egg odor emanating from copper surfaces that, in turn, turn black and exhibit a powdery ash type substance. Experts opine that this is a result of a reaction of the copper with hydrogen sulfide. Much of wiring or piping found in homes is made of copper. Exposure to Chinese drywall can result in nose bleeds, headaches, coughs, upper respiratory or sinus problems, rashes, and difficulty breathing. There have also been cases reported of pets dying due to exposure to Chinese drywall.
Reprinted courtesy of
William M. Kaufman, Lockhart Park LP
Mr. Kaufman may be contacted at wkaufman@lockhartpark.com, and you may visit the firm's website at www.lockhartpark.com
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Privette: The “Affirmative Contribution” Exception, How Far Does It Go?
August 10, 2020 —
Courtney Arbucci, Peter A. Dubrawski & Austin F. Smith - Haight Brown & BonesteelIn Horne v. Ahern Rentals, Inc. (No. B299605, filed 6/10/2020 ord. publ. 6/10/2020), Plaintiffs filed a wrongful death action against Defendant Ahern Rentals, Inc. (“Ahern”) arising out of the fatal incident involving Ruben Dickerson (“decedent”), while employed by independent contractor 24-Hour Tire Service, Inc. Decedent was ultimately crushed on Ahern Rentals, Inc.’s property when a forklift that was improperly placed on uneven ground collapsed as decedent laid under the raised forklift as he performed tire maintenance.
Plaintiffs’ suit would normally be barred by the Privette line of decisions which arise out of the foundational principle that an independent contractor’s hirer presumptively delegates to the contractor its tort law duty to provide a safe workplace for the contractor’s employees. (Privette v. Superior Court (1993) 5 Cal.4th 689 (Privette).) The Privette rule is subject to a number of exceptions including the “peculiar risk” exception, the “nondelegable duty” exception and the “affirmative contribution” exception. (See Privette, supra.) Here, Plaintiffs’ claimed that their suit against Ahern arose out of the “affirmative contribution” exception to Privette as defined by Hooker v. Department of Transportation (2002) 27 Cal.4th 198, 202 (Hooker). Hooker allows suits otherwise barred by Privette to go forward if the hirer of the independent contractor “exercised control over safety conditions at the worksite in a way that affirmatively contributed to the employee’s injuries.”
Reprinted courtesy of Haight Brown & Bonesteel attorneys
Courtney Arbucci,
Peter A. Dubrawski and
Austin F. Smith
Ms. Arbucci may be contacted at carbucci@hbblaw.com
Mr. Dubrawski may be contacted at pdubrawski@hbblaw.com
Mr. Smith may be contacted at asmith@hbblaw.com
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Beverly Hills Voters Reject Plan for Enclave's Tallest Building
November 10, 2016 —
James Nash – BloombergA costly battle over development in Beverly Hills, California, ended with voters rejecting a hotel owner’s proposal to combine two planned condominium towers into a single building that would have loomed over the wealthy Southern California enclave.
With 44 percent in support and 56 percent against, Beverly Hills voters turned down plans by Beny Alagem, who owns the Beverly Hilton and is building an adjacent 170-room Waldorf Astoria, to develop a single 26-story tower next to the hotels, instead of eight- and 18-story buildings that were approved by the city council and a voter referendum in 2008. Alagem’s plan sets aside the remaining 1.7 acres (0.7 hectares) for a public park and gardens.
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James Nash, Bloomberg
ABC Chapter President Comments on Miami Condo Collapse
July 11, 2021 —
Rachel O'Connell - Construction ExecutivePeter Dyga, ABC Florida East Coast Chapter president, has been one of the go-to experts in the aftermath of the shocking collapse of the Champlain Towers South condo building in Surfside, Florida.
As of publication, the death toll stands at 46 people and another 94 remain unaccounted for. On July 7, rescue officials announced the search would transition to a recovery operation at midnight on July 8, following the demolition of the remaining building over the July 4 weekend.
Dyga sat down with Construction Executive to discuss the critical nature of this tragedy and to review potential next steps.
Construction Executive: This incident has become national news. Why do you think the building collapse has garnered so much attention?
Peter Dyga: Because of the enormity of the tragedy and because it’s so uncommon for a building to collapse on its own.
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Rachel O'Connell, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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An Era of Legends
May 03, 2018 —
Beverley BevenFlorez-CDJ STAFFIn 2010, West Coast Casualty’s Construction Defect Seminar added a new award: The Legend of an Era. West Coast Casualty recognizes “those in the construction defect community who inspire, contribute, advocate and influence others for the benefit and betterment of this community, making it a better place.”
They define Legend as “One that inspires or achieves legendary fame based upon ones own achievement(s) which promises to be enduring” and Era, as “A fixed point of time from which a series of years is reckoned and an order of things prevail.”
This annual award is presented at the West Coast Casualty Construction Defect Seminar.
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Construction Delayed by Discovery of Bones
June 28, 2011 —
CDJ STAFFWork stopped on a $7 million construction project in Oak Harbor, Washington, after three sets of Native American remains were found. The Washington State Department of Archaeology and Historic Preservation had suggested that the project employ an archaeologist. City, state, and tribal officials are determining what will happen next. The Seattle Times reports that Jim Slowik, Oak Harbor’s mayor, has asked for a review of why no archaeologist was part of the project.
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