In the wake of Superstorm Sandy in October 2012, a team of Day
Pitney attorneys led by Frank Lawatsch, a partner in the New York
office, has been instrumental in providing crisis management
services to the largest securities custodian in the world. The
client's vault in New York was severely affected by Superstorm
Sandy. Documents in the vault were subject to water exposure. A Day
Pitney legal team, across numerous departments and in offices in
New York, New Jersey and Connecticut, collaborated to advise the
client regarding the damage.
For the duration of the project, Day Pitney has been providing
unique services, including:
- Providing advice on hiring and retaining contractors, including
negotiating, drafting and finalizing agreements.
- Addressing security and regulatory concerns, including
interfacing with state and federal regulators.
- Dealing with environmental concerns, including aiding in the
development of a Health and Safety Plan (HASP) and participating in
site visits.
- Securing endorsements to the client's existing insurance policies and obtaining new policies to cover the recovery processes.
Prior to Superstorm Sandy, Frank Lawatsch had the unique
background of providing crisis management services to clients in
New Orleans following Hurricane Katrina and to a large
international bank after September 11, 2001. As a result, the firm
had the specific ability to provide similar services to its client
following Superstorm Sandy. The client's damaged property was
worth several billions of dollars and required a specialized
recovery process to halt the water damage. Day Pitney attorneys
assisted the client in securing contractors with patented services
to freeze-dry the damaged property and sterilize it to ensure it
was safe for further use.
With the effectiveness of the recovery process being extremely
time-sensitive, Day Pitney attorneys worked around the clock to
ensure that the proper contractors were in place to stabilize the
client's property and commence recovery operations, all under
heavy security requirements. As soon as the recovery process began,
Day Pitney attorneys were instrumental in negotiating and
finalizing the agreements with the recovery specialists. Even when
faced with a looming deadline requiring movement of the damaged
property, the Day Pitney legal team helped the client negotiate
insurance that would cover both the movement of the property and
the actual recovery process.
Throughout the recovery process, Day Pitney has been tasked with
overseeing the legal aspects of many of the contractors,
coordinating update meetings and providing a line of communication
to the underwriters of the client's insurance policies. In
addition to the help on the ground, Day Pitney has provided the
client with advice regarding the destruction of property that could
not be salvaged, obligations under certain regulatory statutes, and
requirements with respect to HASP plans and hiring
guidelines.
This project has allowed Day Pitney attorneys to showcase their
ability to work across practice groups and offices in an extremely
time-sensitive manner. Day Pitney has been successful under
pressure not only in aiding the client in building a recovery team,
but also in providing sound legal advice and project oversight.
Mindful of the costs of such a project, Day Pitney was able to
deliver these services in a cost-effective manner.
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