ANAHEIM CALIFORNIA CONSTRUCTION EXPERT WITNESS
DIRECTORY AND CAPABILITIES

From ‘Cuckoo’s Egg’ to Today’s Cyber Threat Landscape

September 02, 2024 — Aarni Heiskanen - AEC Business
In 1990, I read an exciting book titled The Cuckoo’s Egg: Tracking a Spy Through the Maze of Computer Espionage. The author, astronomer Clifford Stoll, managed computers at Lawrence Berkeley National Laboratory (LBNL) in California. He was tasked with resolving an accounting error of 75 cents in the computer usage accounts. The tedious process eventually led him to disclose a German hacker who had gained access to U.S. military secrets through LBNL’s computers. He had been selling information to the KGB for years. Today’s threat landscape in construction The LBNL incident was one of the first—if not the first—documented cases of a computer break-in. Fast-forward to today and cyber-attacks are an everyday phenomenon that occurs more often in construction. Read the full story...
Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

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Spain Risks €10.6 Billion Flood Damage Bill, Sanchez Says

November 25, 2024 — Rodrigo Orihuela, Macarena Munoz Montijano & Jorge Zuloaga - Bloomberg
Spanish Prime Minister Pedro Sanchez announced the first financial package for victims of the storms that killed more than 200 people in the country’s eastern region of Valencia. Spain will earmark as much as €10.6 billion ($11.5 billion) for its first relief package and more will be announced in the future, Sanchez said in a press conference Tuesday in Madrid. The package includes direct aid for households, self-employed workers and firms; state-backed credit guarantees for companies and residents; and funds for city governments to pay for repairs and reconstruction. Reprinted courtesy of Rodrigo Orihuela, Bloomberg, Macarena Munoz Montijano, Bloomberg and Jorge Zuloaga, Bloomberg Read the full story...

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In Phoenix, Crews Thread Needle With $730M Broadway Curve Revamp

July 31, 2024 — Scott Blair - Engineering News-Record
Motorists scrambling to dart across three lanes of traffic when merging onto the freeway. Vehicles slowing to a crawl due to extremely curved exit ramps. Commuters enduring agonizing backups as three freeways converge in a tight footprint. Bicyclists and pedestrians sweating through long detours to traverse freeways. Reprinted courtesy of Scott Blair, Engineering News-Record Mr. Blair may be contacted at blairs@enr.com Read the full story...

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Timely and Properly Assert Affirmative Defenses and Understand Statutory Conditions Precedent

August 05, 2024 — David Adelstein - Florida Construction Legal Updates
A recent case serves as a reminder to TIMELY and PROPERLY assert affirmative defenses and to understand statutory conditions precedent to construction lien claims. Failing to do one or the other could be severely detrimental to the position you want to take in a dispute, whether it is a lien foreclosure dispute, or any other dispute. In Scherf v. Tom Krips Construction, Inc., 2024 WL 3297592 (Fla. 4th DCA 2024), the president of a construction company and his wife were building a residence. They orally accepted the proposal from the concrete shell contractor and asked for invoices to be submitted to the president’s construction company. No written contract was memorialized. The president and his wife did not pay the concrete shell contractor and the contractor recorded a lien and sued to foreclose on the lien. Years later (the case had been stayed because the president and his wife filed for bankruptcy and the shell contractor had to get leave of the automatic bankruptcy stay to pursue the lien foreclosure), the shell contractor moved for summary judgment. The president and his wife moved for leave to file an amended answer and affirmative defenses. They claimed the oral contract was with the construction company and the shell contractor was required to serve a Notice to Owner under Florida Statute s. 713.06. Alternatively, they argued that if the oral contract was with the president and his wife, the shell contractor was required to serve a Final Contractor’s Payment Affidavit at least 5 days before filing its lien foreclosure claim, and did not, as required by s. 713.06. Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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Construction Litigation Roundup: “A Close Call?”

August 05, 2024 — Daniel Lund III - Lexology
Not really, said a Florida state appellate court when a public construction project owner sued a defaulted general contractor after recovering from the general contractor’s surety. The general contractor, Close Construction, entered into a contract for a lift station rehabilitation construction project with the City of Riviera Beach in Florida. During the course of the work the public owner terminated the contract, whereupon the GC and the owner brought claims against each other in court. A jury ultimately held against the general contractor and in favor of the public owner in the amount of approximately $1.9 million. The general contractor appealed. On appeal, the general contractor noted that the public works surety which it was required by the contract to obtain for the project had hired another company to complete the work when the general contractor was terminated and had otherwise “settled with the District under its bond for $1,000,000.” Based on that settlement, the general contractor had moved, unsuccessfully, in the trial court for a post-trial setoff because the “settlement covered the same damages that the jury assessed” against the GC, and because the surety was “jointly and severally liable” with the GC – pursuant to the terms of the bond – for those damages. In essence, the general contractor sought to avoid having the public owner “obtain a double recovery.” Read the full story...
Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

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Real Protection for Real Estate Assets: Court Ruling Reinforces Importance of D&O Insurance

October 01, 2024 — Hunton Insurance Recovery Blog
Earlier this month, an Illinois federal district court held that a liability insurer had no duty to defend or indemnify a property management company or its owner in lawsuits that included allegations of intentional conduct. The suits accused the owner of concealing financial information from and engaging in a scheme to increase tax liability and decrease profit distributions to a minority owner. This case reinforces the importance of maintaining D&O insurance as part of a comprehensive liability insurance program to protect against potential gaps in coverage that could result from allegations of intentional or knowing acts. Background The court in Old Guard Insurance Company v. Riverway Property Management, LLC et al., No. 1:23-cv-01098 (C.D. Ill. Sep. 6, 2024) was asked to determine whether Old Guard Insurance Co. was required to defend or indemnify Riverway Property Management LLC or its owner under two commercial general liability policies in relation to state court lawsuits. The lawsuits alleged that Riverway’s owner intentionally and improperly misappropriated funds and that the property management company knowingly and substantially assisted with this wrongful scheme. Read the full story...
Reprinted courtesy of Hunton Andrews Kurth LLP

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Brenda Radmacher to Speak at Construction Super Conference 2024

November 05, 2024 — Brenda Radmacher - The Construction Seyt
Brenda Radmacher, partner in Seyfarth’s Construction group, will present and moderate panels at the 38thAnnual Construction Super Conference 2024 on December 9-11. The conference is recognized as the preeminent construction conference developed for mid to senior-level professionals working in legal and commercial construction markets. Panel – Looking Around Corners: Emerging Trends and Proactive Solutions Brenda will co-present a panel on innovative ways to engage experts in construction disputes, focusing on early expert involvement to aid in risk management, issue analysis, mitigation, and documentation for potential litigation. Panel – Top 10 Issues to Address in Your ADR Process for a Better Solution in Construction Disputes Read the full story...
Reprinted courtesy of Brenda Radmacher, Seyfarth
Ms. Radmacher may be contacted at bradmacher@seyfarth.com

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Parks and Degradation: The Mess at Yosemite

September 09, 2024 — Laura Bliss - Bloomberg
A couple of miles past the western entrance to Yosemite National Park, visitors pass from California into a postcard. The road opens to a majestic view of Half Dome, El Capitan and Cathedral Rocks—celebrity peaks if ever there were—which form the towering walls of Yosemite Valley. On the pine-scented floor of John Muir’s mountain mansion, the Merced River flows gently by the side of the road as signs point toward trailheads and tourist destinations. Not far from Curry Village, a cluster of tent cabins and eateries at the eastern end of the road, is a section of employee housing known as the Stables. It was there that Erin Rau found herself wrapped in a sleeping bag one broiling afternoon last summer, wondering whether she was about to die. Rau was a little over a month into a seasonal job selling goods in the village’s general store. Almost as soon as she arrived from Michigan, she recalls, she got the sense this wouldn’t be the carefree, post-college summer gig she’d imagined. In the evenings, she was left alone to manage a bunch of fellow early-twentysomethings making the same sixteenish bucks an hour until the shop closed at 10. At night a family of ringtail possums would crawl down from the rafters to tear into a display of baked goods, a long-standing issue she says her bosses did nothing to resolve, apart from throwing away half-eaten muffins in the morning. Similarly, deer mice kept leaving droppings on the pillows and sheets in the cabin Rau shared with three other women. When one of her roommates complained, she says, management supplied a Ziploc with a couple of mouse traps, a mask, gloves and some hand wipes, leaving the employees to sort out the rest. Read the full story...
Reprinted courtesy of Laura Bliss, Bloomberg

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