CCPA Class Action Lawsuits Are Coming. Are You Ready?
March 23, 2020 —
Daniel Schneider & Jeffrey Dennis – Newmeyer DillionThe only certainties in life used to be death and taxes. In 2020, it would be safe to add California Consumer Privacy Act (CCPA) class actions to that "distinguished" list. On February 3, Barnes v. Hanna Andersson, LLC, N.D. Cal., Case No. 20-cv-00812, was filed in the Northern District of California, setting in motion the certainty that CCPA class actions are on their way, if not already here.* Filed on behalf of all California residents, the Barnes complaint alleges that between September and November 2019, clothing retailer Hanna Andersson and Salesforce, its online payment services provider, failed to properly safeguard the personally identifiably information (PII) of its customers after hackers stole customers' private information and posted it to the dark web for sale.
What You Need to Know
- Under the CCPA, a data breach is any unauthorized access, theft or disclosure of a consumer's non-encrypted and non-redacted personal information that results from a company's failure to implement and maintain "reasonable" security procedures and practices. Here, the complaint alleges that the defendants failed to maintain reasonable security procedures and practices in order to protect the consumers' PII.
- Although the CCPA is largely viewed as new law related to California consumers' privacy rights (and placement of subsequent obligations to companies doing business in California), the CCPA includes potentially draconian damages for a data breach permitted by unreasonable cybersecurity. Under the new law, an individual need not show any actual harm caused by a data breach, yet he/she may seek statutory fines of up to $750 per incident per individual in the event of a breach. Plaintiffs estimate that at least 10,000 California residents could have been affected by this breach, thereby exposing defendants to up to $7.5 million dollars in damages if proven true.
- There exists a duty to monitor and ensure that third party organizations are properly safeguarding a company's data. During the course of the investigation into the breach, it was discovered that the Salesforce ecommerce platform was infected with malware which allowed the hackers to steal consumers' PII from Hanna Andersson's website.
- The CCPA went into effect on January 1, 2020, yet enforcement by the California Attorney General is not allowed until July 2020. However, no such delay is required for private litigation under the data breach portion of the CCPA. Interestingly, although the complaint alleges that the data breach occurred in 2019, the court could choose to apply the CCPA but that is still yet to be determined.
While Barnes may be the first class action lawsuit to mention violation of the CCPA, it certainly will not be the last. In fact, numerous class actions lawsuits have been filed in the new year which either mention the CCPA or utilize CCPA-like language to style particular claims. As such, it is evident that the Plaintiffs' bar sees the CCPA as a potential for extensive class action litigation. Expect to see an ongoing deluge of class action litigation in California under the data breach portions of the CCPA. In addition, although the Barnes' plaintiffs may not be able to invoke the CCPA due to the data breach occurring in 2019 (before the CCPA took affect), Barnes serves as a stark reminder that implementing and maintaining reasonable data security is vital to defend a business against CCPA claims. Newmeyer Dillion can assist companies analyze their cyber risk profile, and provide access to experienced forensic teams which can ensure reasonable security exists in your organization.
*While Barnes does not yet expressly state a cause of action under the CCPA, relying upon violations of the California Unfair Competition Law in its place, we anticipate that an amendment will soon be filed to include a CCPA claim.
Daniel Schneider is a Partner in Newmeyer Dillion's Privacy & Data Security group. Focused on advocating on behalf of clients when cyber threats inevitably happen, Dan also advises on best practices to help protect the company and mitigate future concerns. Dan can be reached at daniel.schneider@ndlf.com.
Jeff Dennis (CIPP/US) is the Head of the firm's Privacy & Data Security practice. Jeff works with the firm's clients on cyber-related issues, including contractual and insurance opportunities to lessen their risk. For more information on how Jeff can help, contact him at jeff.dennis@ndlf.com.
About Newmeyer Dillion
For 35 years, Newmeyer Dillion has delivered creative and outstanding legal solutions and trial results that achieve client objectives in diverse industries. With over 70 attorneys working as a cohesive team to represent clients in all aspects of business, employment, real estate, environmental/land use, privacy & data security and insurance law, Newmeyer Dillion delivers holistic and integrated legal services tailored to propel each client's success and bottom line. 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 Nevada, and have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949.854.7000 or visit www.newmeyerdillion.com.
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No Coverage for Foundation Collapse
November 08, 2017 —
Tred R. Eyerly - Insurance Law HawaiiCoverage for the collapse of a foundation was not covered under the contractor's builder's risk policy. Taja Investments LLC v. Peerless Ins. Co., 2017 U.S. App. LEXIS 19855 (4th Cir. Oct. 11, 2017).
Taja Construction LLC was renovating a row house owned by Taja Investments LLC when the east wall of the property collapsed. Taja submitted a claim for repair costs in the amount of $400,000. Peerless denied coverage because the collapse was caused by Taja's failure to support the building's foundation properly while excavating the basement. The policy excluded coverage for defects in construction or workmanship. The claim was also denied under the earth movement exclusion.
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Tred R. Eyerly - Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
“It Just Didn’t Add Up!”
November 05, 2024 —
Daniel Lund III - LexologyOverturning arbitration awards in court is difficult. One of the few bases for a challenge to an award (under the Federal Arbitration Act, 9 U.S.C. 10(a)(4), as well as most state arbitration laws) is where the arbitrator is alleged to have “exceeded [his/her] powers” afforded the arbitrator by whatever rules and agreements are in place for the arbitration. Obviously, this places a burden on the arbitrator to “color within the lines” when serving as arbitrator and issuing rulings in the case.
“After extensive discovery and a 10-day hearing, the Tribunal rendered a 142-page” award, whereupon the parties both sought to have the arbitrators correct what the parties agreed was an error in the award – increasing the award by $47,710. One of the parties, however, went further, urging that the arbitrators “erroneously included damages for claims related to production revenue” that occurred before a certain date. According to the court, that party was urging that “the Tribunal erred by factoring into its award damages related to Claims 2 and 3, which the Tribunal never substantially addressed.”
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
Client Alert: California’s Unfair Competition Law (B&P §17200) Preempted by Federal Workplace Safety Law
September 24, 2014 —
R. Bryan Martin, Yvette Davis, & Kristian Moriarty - Haight Brown & Bonesteel LLPIn Solus Industrial Innovations LLC v. Superior Court (No. G047661, filed 9/22/2014) (“Solus”) the California Court of Appeal, Fourth Appellate District, held California’s Unfair Competition Law (Business & Professions Code §17200) is preempted by the federal Occupational Safety and Health Act of 1970 (“Fed/OSHA”) because the Unfair Competition law, as approved by the United States Secretary of Labor, does not include any provision for civil enforcement of workplace safety standards by a state prosecutor through a complaint for penalties.
Solus Industrial Innovations, LLC (“Solus”) is a plastics manufacturer. In 2007, Solus installed a residential water heater at its commercial facility in Orange County. The water heater exploded in March 2009, killing two workers. California’s Division of Occupational Safety and Health (“Cal/OSHA”) investigated and determined the explosion was caused by a failed safety valve and lack of any proper safety feature on the water heater. Cal/OSHA charged Solus with five violations of Title 8 of the California Code of Regulations. Because deaths were involved, Cal/OSHA forwarded the results of its investigation to the Orange County District Attorney.
In March 2012, the Orange County District Attorney filed criminal charges against Solus’ plant manager and maintenance supervisor. The District Attorney also filed a civil action against Solus, including two causes of action for violation of California Business & Professions Code §17200 – the Unfair Competition Law (“UCL”). The action sought civil penalties under the UCL in the amount of $2,500 per day, per employee, from November 29, 2007 through March 19, 2009.
Reprinted courtesy of Haight Brown & Bonesteel LLP attorneys
R. Bryan Martin,
Yvette Davis and
Kristian Moriarty
Mr. Martin may be contacted at bmartin@hbblaw.com
Ms. Davis may be contacted at ydavis@hbblaw.com
Mr. Moriarty may be contacted at kmoriarty@hbblaw.com
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State Farm Unsuccessful In Seeking Dismissal of Qui Tam Case
January 26, 2017 —
Tred R. Eyerly – Insurance Law HawaiiIn an insurance related case, the United States Supreme Court affirmed the Fifth Circuit's decision that State Farm was not entitled to a dismissal of a qui tam case involving its claims-handling after Hurricane Katrina. State Farm Fire & Cas. Co. v. United States ex rel. Rigsby, ___ U.S. ___, 137 S. Ct. 436 (2016).
Before Katrina, State Farm issued two types of policies to homeowners: (1) Federal Government-back flood policies and (2) its own general homeowner policies. After Hurricane Katrina, State Farm's policies were responsible for wind damage, and the government policies were responsible for flood damage. Therefore, it was in State Farm's interest to classify hurricane damage as flood-related.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
ASCE Releases New Report on Benefits and Burdens of Infrastructure Investment in Disadvantaged Communities
February 05, 2024 —
The American Society of Civil EngineersWashington — The
American Society of Civil Engineers today released a new paper, Measuring the Benefits and Burdens of Infrastructure in Disadvantaged Communities. The report looks at how several communities across the country consider equity when investing infrastructure funds, and the impact of those projects on lower-income communities.
"Civil engineers are focused on improving quality of life by building systems that improve the public's health, safety, and well-being," said Marsia Geldert-Murphey, P.E., 2024 President, ASCE. "However, the decisions on how and where infrastructure is built can affect communities for decades after a project is complete. By looking at the benefits and burdens of past projects, infrastructure owners and developers can find better ways to consider the impact of infrastructure projects being designed now."
Some of the recommendations in the paper include encouraging government and other infrastructure stakeholders to use community engagement and transparent metrics when making decisions about proposed infrastructure investments. It also encourages post-project assessments and the use of existing resources to evaluate the positive and unexpected consequences of past infrastructure projects.
Measuring the Benefits and Burdens of Infrastructure in Disadvantaged Communities is
available here.
ABOUT THE AMERICAN SOCIETY OF CIVIL ENGINEERS
Founded in 1852, the American Society of Civil Engineers represents more than 150,000 civil engineers worldwide and is America's oldest national engineering society. ASCE works to raise awareness of the need to maintain and modernize the nation's infrastructure using sustainable and resilient practices, advocates for increasing and optimizing investment in infrastructure, and improve engineering knowledge and competency. For more information, visit www.asce.org or www.infrastructurereportcard.org and follow us on Twitter, @ASCETweets and @ASCEGovRel.
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What is the Effect of an Untimely Challenge to the Timeliness of a Trustee’s Sale?
April 13, 2017 —
Ben Reeves - Snell & Wilmer Real Estate Litigation BlogEver wonder what happens if a person challenges the timeliness of a trustee’s sale after the sale already occurred? Waiver of the argument of course! And, in the case of Wells Fargo Bank, N.A. v. Waltner, the affirmance of an eviction judgment.
In the Waltner case, Wells Fargo Bank, N.A., as Trustee for WaMu Mortgage Pass-Through Certificates, Series 2005-PR4 Trust (the “Bank”), purchased a residential property at a trustee’s sale in September 2015. The Bank gave the occupant of the house, Sarah Waltner (“Waltner”), notice to vacate the property, but she did not do so. Accordingly, the Bank filed a summary action to evict Waltner, which the trial court ultimately granted.
After the trial court granted the Bank relief, Waltner filed a motion to dismiss and a motion to vacate the eviction judgment arguing, among other things, that the judgment was void because the Bank conducted the trustee’s sale after the statute of limitations expired. Both motions were denied, and Waltner appealed.
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Ben Reeves, Snell & WilmerMr. Reeves may be contacted at
breeves@swlaw.com
A Behind-the-Scenes Look at Substitution Hearings Under California’s Listing Law
March 04, 2019 —
Garret Murai - California Construction Law BlogThe next case, JMS Air Conditioning and Appliance Service, Inc. v. Santa Monica Community College District, 2nd District Court of Appeal, Case No. B284068 (December 17, 2018), provides an interesting behind-the-scenes look at substitution hearings under the Subletting and Subcontracting Fair Practices Act.
The Subletting and Subcontracting Fair Practices Act
- The Subletting and Subcontracting Fair Practices Act (Public Contract Code Section 4100 et seq.), also commonly referred to as the “Listing Law,” requires that prime contractors on state and local public works projects “list” the following subcontractors in their bids:
- Subcontractors who are anticipated to perform work with a value in excess of 0.5% of the prime contractor’s total bid; and
Subcontractors, on street, highway and bridge projects, who are anticipated to perform work with a value in excess of the greater of: (a) 0.5% of the prime contractor’s total bid; or (b) in excess of $10,000.
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Garret Murai, Wendel RosenMr. Murai may be contacted at
gmurai@wendel.com
