And the Cyber-Beat Goes On. Yet Another Cyber Regulatory Focus for Insurers
April 15, 2015 —
Robert Ansehl – White and Williams LLPRegulators and government agencies are sharpening their focus on the issues surrounding cyber risk. The number of pronouncements are too numerous to recite in a single client alert but the overarching message is clear – be prepared or be subject to attack. Attacks not only will come from hackers, customers, consumers and, ultimately the plaintiffs’ bar, but the regulators themselves. Vulnerability lies not only with cyber attacked companies but increasingly with the companies’ officers and directors who fail to adequately safeguard data.
On March 26, 2015, the New York Department of Financial Services (DFS) announced that it would be expanding its information technology examination procedures to focus on cyber risk. This effort was a follow-up to its February 8, 2015 announcement of new cyber assessments (See "Not Just Another Client Alert about Cyber-Risk and Effective Cybersecurity Insurance Regulatory Guidance," March 24, 2015). Not to be outdone, the National Association of Insurance Commissioners (NAIC) proposed a comprehensive and mandatory filing for property casualty insurers that would give regulators a full range of information and data on cyber risk exposures issued by carriers in the insurance market. This proposal comes on the heels of President Obama’s proposal, just two months ago, to create the Cyber Threat Intelligent Integration Center (CTIIC), a new federal agency designed to fight cyber attacks, provide collaboration and encourage information sharing between the Federal government and private industry.
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Robert Ansehl, White and Williams LLPMr. Ansehl may be contacted at
ansehlr@whiteandwilliams.com
Texas Supreme Court Holds that Invoking Appraisal Provision and Paying Appraisal Amount Does Not Insulate an Insurer from Damages Under the Texas Prompt Payment of Claims Act
September 16, 2019 —
John C. Eichman & Grayson L. Linyard - Hunton Insurance Recovery BlogIn two cases decided June 28, 2019, the Texas Supreme Court held that an insurer’s invocation of a contractual appraisal provision after denying a claim does not as a matter of law insulate it from liability under the Texas Prompt Payment of Claims Act (“TPPCA”). But, on the other hand, the court also held that the insurer’s payment of the appraisal award does not as a matter of law establish its liability under the policy for purposes of TPPCA damages.
In Barbara Techs. Corp. v. State Farm Lloyds, No. 17-0640, 2019 WL 2666484, at *1 (Tex. June 28, 2019), State Farm Lloyds issued property insurance to Barbara Technologies Corporation for a commercial property. A wind and hail storm damaged the property, and Barbara Tech filed a claim under the policy. State Farm denied the claim, asserting that damages were less than the $5,000 deductible.
Barbara Tech filed suit against State Farm, including for violation of the TPPCA. Six months later, State Farm invoked the appraisal provision of the policy. More than a year after the suit was filed, appraisers agreed to a value of $195,345.63. State Farm then paid that amount, minus depreciation and the deductible. Barbara Tech amended its petition to include only TPPCA claims.
Reprinted courtesy of
John C. Eichman, Hunton Andrews Kurth and
Grayson L. Linyard, Hunton Andrews Kurth
Mr. Eichman may be contacted at jeichman@HuntonAK.com
Mr. Linyard may be contacted at glinyard@HuntonAK.com
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Barratt Said to Suspend Staff as Contract Probe Continues
January 26, 2017 —
Jack Sidders - BloombergBarratt Developments Plc suspended at least three more employees within its London business as part of an ongoing probe into potential misconduct in the awarding of contracts, according to two people familiar with the decision.
The people asked not to be named because a police investigation is ongoing. The suspensions follow that of London regional managing director Alastair Baird, who was arrested in October. He was released on bail until April, along with a 47-year-old woman, according to a Metropolitan Police spokesman, who was unable to immediately respond to a request for comment.
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Jack Sidders, BloombergMr. Sidders may be followed on Twitter @JackSidders
Is Modular Construction Destined to Fail?
March 11, 2024 —
Aarni Heiskanen - AEC BusinessThe construction sector is a harsh environment for innovation. I’ve been following the story of one Finnish innovative contractor, Lehto Group, over the years with enthusiasm. I was saddened to hear that the group’s three significant subsidiaries joined the ranks of many Finnish contractors who have filed for bankruptcy over the last six months.
Lehto developed industrialized building concepts and had its own production facilities. The company had a promising start but eventually ran into problems. Was the industrial approach a mistake, or were other factors contributing to the firm’s fall?
Three Contributing Factors
Lehto Group’s collapse was not a surprise to its competitors, who had observed warning signs years prior. The company’s order book plummeted in 2024 despite still employing around 500 workers. Rakennuslehti, the leading construction magazine in Finland, asked three experienced industry professionals to give their views on Lehto’s failure. The interviewees spoke anonymously due to the small size of the Finnish market and the sensitive nature of commenting on a competitor’s matters.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
No Repeal Process for Rejected Superstorm Sandy Grant Applications
February 12, 2014 —
Beverley BevenFlorez-CDJ STAFFEven though it’s been revealed that “faulty data” was used to reject many New Jersey recovery grants for victims of Superstorm Sandy, the state has announced that it’s too late to appeal, according to The Wall Street Journal.
“The applicants were informed by letter that they weren't eligible,” state officials told The Wall Street Journal, “and it should have been clear that they needed to appeal last year, so the application process won't be reopened.”
The majority of the rejected applicants that did appeal within the open period were found to be eligible for the grant: “Nearly 80% of people who appealed their rejections ended up winning their cases, according to data released by the Fair Share Housing Center, a public-interest law firm critical of the Christie administration. And of the 8,007 applicants rejected from both programs, 5,583 didn't appeal, or 70%, according to Fair Share Housing Center's analysis.”
U.S. Representative Bill Pascrell called for “an independent monitor” to be “appointed to oversee the state’s storm spending ‘to ensure there isn’t further mismanagement.’”
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Title II under ADA Applicable to Public Rights-of-Way, Parks and Other Recreation Areas
June 29, 2017 —
Richard E. Morton - Haight Brown & Bonesteel LLPPlaintiff Ivana Kirola, who suffers from cerebral palsy, sued the City and County of San Francisco, in a class action contending certain public areas, including rights-of-way, pools, parks and other recreation areas, did not meet the mandate of Title II of the American With Disabilities Act (Kirola v. City and County of San Francisco, 9th Circuit Court of Appeals, No. 14-17521, 2017 DJDAR 5982). Title II provides that no qualified individual with a disability “shall, by reason of such disability, be excluded from participation in or be denied the benefits of the services, programs, or activities of a public entity, or be subjected to discrimination by any such entity.”
Title II’s implementing regulations mandate that each facility constructed after January 26, 1992 be “readily accessible to and usable by individuals with disabilities.” And, for each facility “altered after January 26, 1992,” the altered portion must, “to the maximum extent feasible,” be likewise accessible. The Federal Architectural and Transportation Barriers Compliance Board creates nonbinding Americans With Disabilities Act Accessibility Guidelines (ADAAG) to ensure compliance with Title II, and that the Department of Justice (DOJ) adopt its own binding regulations, consistent with the ADAAG standards. Here, the District Court interpreted ADAAG standards as not applying to public rights-of-way, parks, and playground facilities. The District Court concluded that none of Kirola’s experts were reliable in their interpretation of the standards and how the standards applied to the public rights-of-way, etc. Conversely, the District Court concluded that all of the city’s experts were reliable. It thus disregarded and discarded every ADAAG violation identified by Kirola’s experts, accepting only the small number of violations identified by the city’s experts.
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Richard E. Morton, Haight Brown & Bonesteel LLPMr. Morton may be contacted at
rmorton@hbblaw.com
One Stat About Bathrooms Explains Why You Can’t Find a House
June 10, 2015 —
Patrick Clark – BloombergThirty-six percent. That’s the share of homes built in the U.S. last year that had three or more bathrooms, up from 26 percent in 2005, according to the U.S. Census Bureau. If you’re on the market for your first home, that statistic can help explain why you’re having a hard time finding something you can afford.
In the years since the recession, builders have devoted their energy to “move-up” homes, which is what the industry calls houses that are too expensive for most first-time buyers. The result is clear from the bureau’s report on the characteristics of new housing, released on Monday: New homes have more bedrooms, bathrooms, and parking spaces. If you prefer a more conventional measure, the median square footage for new homes has increased 10 percent in the past decade.
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Patrick Clark, Bloomberg
Safety Accusations Fly in Dispute Between New York Developer and Contractor
July 01, 2019 —
Richard Korman - Engineering News-RecordThe developer of a New York City high rise and the project's former prime contractor are trading unusually nasty safety related accusations in a dispute over the contractor's exit from the project. The contractor, New York City-based Pizzarotti, claims the settlement of the structure in soft soils creates hazards in future work that could send building components crashing to the streets. In reply, developer Fortis Property Group says the contractor’s uneven pace of work is to blame for what it sees as only slab misalignments that don’t compromise safety in any way.
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Richard Korman, ENRMr. Korman may be contacted at
kormanr@enr.com