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
Partner Lisa M. Rolle and Associate Vito John Marzano Obtain Dismissal of Third-Party Indemnification Claims
December 22, 2019 —
Lisa M. Rolle & Vito John Marzano - Traub Lieberman PerspectivesOn June 1, 2019, Traub Lieberman partner Lisa M. Rolle and associate Vito John Marzano successfully secured dismissal of all third-party claims on behalf of a corporate entity and its principal in a third-party action in the New York State Supreme Court, County of Bronx. The underlying action concerned a trip and fall that occurred on a public sidewalk located in the Bronx. Plaintiff commenced suit against the corporation property owner and its principal. Defendants/third-party plaintiffs commenced the third-party action seeking contractual and common-law indemnification against three third-party defendants, the corporate tenant, another corporate entity that was not a party to the lease and its principal. Traub Lieberman represented the latter two third-party defendants.
On behalf of the corporate entity that was not a party to the lease, Traub Lieberman moved for dismissal on the basis that the lease constitutes documentary evidence establishing as a matter of law that the non-tenant corporation cannot be held liable to third-party plaintiffs. On behalf of the principal, Traub Lieberman sought dismissal for failure to state a cause of action because the principal was shielded from liability by virtue of having incorporated his business, and the complaint did not allege a claim for piercing the corporate veil.
In opposition, third-party plaintiffs sought to amplify their pleadings by alleging that a de facto merger had occurred between the non-tenant corporation and the tenant corporation. Third-party plaintiffs further argued that the corporate principal executed a guaranty to the lease, thus accepting liability on behalf of the tenant corporation.
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Lisa M. Rolle, Traub Lieberman and
Vito John Marzano, Traub Lieberman
Ms. Rolle may be contacted at lrolle@tlsslaw.com
Mr. Marzano may be contacted at vmarzano@tlsslaw.com
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Is Your Contract “Mission Essential?” Recovering Costs for Performing During a Force Majeure Event Under Federal Regulations
May 10, 2022 —
Joneis M. Phan & Sarah K. Bloom - ConsensusDocsFederal contractors have faced unprecedented challenges performing during the COVID-19 pandemic. Additional costs have included delays and inefficiencies, site closures, quarantines, unavailability of supplies and materials, and full shutdowns of subcontractor operations. For contractors performing under fixed price contracts, the cost impact of COVID-19 was likely severe.
The Federal Acquisition Regulation (“FAR”) recognizes “epidemics” as a force majeure event that may excuse non-performance. Many federal contracts include some version of the Default clause, which prevents the government from terminating a contractor for default due to impacts of force majeure events that are beyond a contractor’s control, such as an epidemic. See, e.g., FAR 52.249-10. See also Pernix Serka Joint Venture v. Dep’t of State, CBCA No. 5683 (Apr. 20. 2020). The Default clause, however, operates as a shield from liability, not a sword authorizing recovery. Contractors are now left wondering whether any avenue exists to recover additional costs incurred after performing in the face of the COVID-19 pandemic.
In response to a likely influx of claims and requests for equitable adjustment due to COVID-19 impacts, the federal government largely took the position that contractors were entitled to extensions of time, but not to additional costs. This article explores the avenues that may be available for contractors to recover costs for performing during a force majeure event that would otherwise be non-compensable.
Reprinted courtesy of
Joneis M. Phan, Watt, Tieder, Hoffar, & Fitzgerald, LLP (ConsensusDocs and
Sarah K. Bloom, Watt, Tieder, Hoffar, & Fitzgerald, LLP (ConsensusDocs).
Mr. Phan may be contacted at jphan@watttieder.com
Ms. Bloom may be contacted at sbloom@watttieder.com
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Wonder How 2021 May Differ From 2020? Federal Data Privacy May Be Enacted - Be Prepared
February 22, 2021 —
Joshua Bevitz - Newmeyer DillionState data privacy laws, which are far from uniform, are on the rise. To address that, as well the public’s increasing concern with protecting their private information, it is expected that there will be a serious effort in Congress this year to enact federal data privacy legislation. Here is what you need to know to ensure your business is ready for potential federal regulation.
Applicable State Laws
As is widely known, some states have recently enacted data privacy legislation to protect consumers. For example, in early 2020, California’s new privacy law, the California Consumer Privacy Act (CCPA), took effect, giving consumers more discretion regarding over how companies share and use their personal information. (For years, California already had in place its Database Security Breach Notification Act.) More recently, California enacted the California Privacy Rights and Enforcement Act (CPRA), which amends and strengthens the CCPA. Other states, such as Maine, Nevada, New York, Oregon, and Washington, have enacted their own data privacy legislation.
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Joshua Bevitz, Newmeyer DillionMr. Bevitz may be contacted at
joshua.bevitz@ndlf.com
#12 CDJ Topic: Am. Home Assur. Co. v. SMG Stone Co., 2015 U.S. Dist. LEXIS 75910 (N. D. Cal. June 11, 2015)
December 30, 2015 —
Beverley BevenFlorez-CDJ STAFFIn his article, “Remediation Work Caused by Installation of Defective Tiles Not Covered,” attorney
Tred R. Eyerly analyzed the Am. Home Assur. Co. case that involved a dispute between a developer and a subcontractor over fractured tiles: “On cross-motions for summary judgment, the court first found that the fracturing of the stone floor tiles caused by the subcontractor's defective installation was the result of an 'occurrence.' There was no evidence that the subcontractor knew that its tile installation work was defective before the tiles fractured. Instead, the fracturing was an unexpected consequence of the defective installation.”
Everly continues, “But there was no ‘property damage.’ For the subcontractor to prevail, the defective installation work had to be considered separate and distinct from the physical manifestation of the defective work. Under California law, coverage resulted from construction defects that involved physical injuries to other parts of the construction project.” Everly concludes, “Because there was no genuine issues of material fact as to the potential for coverage, there was no duty to defend.”
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Understanding Entitlement to Delays and Proper Support
December 10, 2024 —
Andrew G. Vicknair - The Dispute ResolverIn a previous
post, we discussed delays on construction projects including (1) critical versus non-critical delays, (2) excusable versus non-excusable delays, and (3) compensable versus non-compensable delays. We also reviewed the common methods of delay analysis include (1) the Total Cost Method, (2) the Modified Total Cost Approach, and (3) the Measured Mile Method.
Once you have determined the type of delay and the method to be used to analyze and quantify the delay, it is important to understand the type of documents/evidence needed to support your claim for delay.
If a party determines that they are entitled to some type of recovery for the delay, the party making a claim for delay, such as a contractor, must have the proper documentation/evidence to assist in proving entitlement for damages from the delay. Without the proper back-up, contractors are generally unable to recover all of the additional costs and expenses associated with the delays or, at best, recover only an “equitable” amount. Generally, damages must be proved with reasonable certainty and may not be based on speculation or conjecture. Thus, it is crucial for a party asserting a delay to have the proper documentation to support a delay claim, if the goal is to recover the damages associated with the delay.
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Andrew G. Vicknair, D'Arcy Vicknair, LLCMr. Vicknair may be contacted at
agv@darcyvicknair.com
Double-Wide World Cup Seats Available to 6-Foot, 221-Pound Fans
June 18, 2014 —
Tariq Panja – BloombergSome of the double-wide seats that Brazilian law guarantees for obese World Cup fans are being occupied by people who don’t need that much extra space, and FIFA said it can’t do anything to prevent that from happening.
Soccer’s governing body said it is using World Health Organization and official Brazil Ministry of Health guidelines on who can be classified as obese. Those with a body mass index, or BMI, of 30 or higher can purchase a special-needs ticket at half price and get one of the special seats. Someone who is 6 feet tall and weighs 221 pounds (1.8 meters, 100 kilograms) would qualify.
“There are cases where a person doesn’t look obese but meets the guidelines,” Federico Addiechi, head of corporate hospitality, said after a briefing yesterday at Rio de Janeiro’s Maracana stadium, where the World Cup’s July 13 final will be held. “We cannot decide you are not obese if the law says you are obese.”
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Tariq Panja, BloombergMr. Panja may be contacted at
tpanja@bloomberg.net
Prison Time and Restitution for Construction Fraud
February 14, 2013 —
CDJ STAFFFederal prosecutors have obtained prison sentences and fines for the two leaders of a construction kickback scheme. Others are awaiting sentencing. The Chicago Sun-Times reports that John Paderta the former president of Krahl Construction has been sentenced to five years in prison and must pay $10 million in restitution. His executive vice president, Doug Harner will be spending five years in prison and has been ordered to pay $9.6 million in restitution.
Paderta and Harner overbilled two clients on renovation projects, giving kickbacks to employees at the client companies. Two employees of these client companies have pled guilty. A further five employees of the three companies have admitted that they were involved in the fraud. They are yet to be sentenced.
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