East-West Freedom

Construction of the Berlin Wall, a concrete barrier physically separating East Berlin from West Berlin was begun by East Germany (the German Democratic Republic) on August 13, 1961 and became a symbol of the “Iron Curtain” separating Western Europe and the Eastern Bloc during the Cold War. In 1989, a series of revolutions, primarily in Poland and then in Hungary, caused a chain reaction and after weeks of protest, in November of 1989, the East German government began allowing GDR citizens to cross into West Berlin (and West Germany) and in the weeks that followed people began chipping away at it. Officially, demolition started on June 13, 1990, Germany was officially reunited on October 3, 1990, and the Berlin Wall (other than sections maintained as memorials), was completed in November 1991.

EU Invalidates the Privacy Shield . . BUT Says Contracts May Save the Day!

Today (July 16, 2020), the EU Court of Justice, (the EU’s highest court) struck down the validity of the Privacy Shield – a mechanism that well over 5,000 U.S. companies have been using and relying upon in order to legally justify the transfer of personal data across the Atlantic into the US.  This same court had previously invalidated the “Safe Harbor” protocol, concluding the Safe Harbor failed to adequately protect privacy rights of EU citizens, since it accorded law enforcement in the United States priority over the rights of EU citizens – permitting law enforcement virtually unrestricted access to the data.

This new case began when Max Schrems, an Austrian privacy advocate, complained to Irish data protection regulators that Facebook’s reliance on standard contract clauses to permit data being transferred from the European Union to the United States did not provide adequate protection. Schrems argued that it didn’t prevent intelligence officials and other third parties in the United States from getting at the information. The Commissioner at the Irish Data Protection Authority took the complaint to Ireland’s high court and they referred certain questions regarding the validity of standard contractual clauses to the EU Court of Justice. Although Schrems’ complaint never raised the Privacy Shield issue, it was raised in oral argument before the court, opening the door for the court to include it in their opinion and decision.

While the European Court invalidated the Privacy Shield, it didn’t buy Schrems’ argument that standard contractual clauses should be deemed invalid as a matter of EU law or regulation. They basically said that standard contract clauses could be among the “effective mechanisms” if they required both sides involved in the transfer to ensure information is accorded the equivalent level of protection as required under EU law. They went on to note that the parties should not use those clauses if they can’t comply with that requirement.

As a result, while neutering the Privacy Shield, they did uphold the validity of the use of standard contractual clauses to legally move personal information outside the European Union, if these clauses were effective in providing the same level of privacy protection as the EU requires.

The case is Between the Data Protection Commissioner and Facebook Ireland Ltd. and Maximillian Schrems (Case Number C-311/18) and as always, if you have any questions or need more information about this posting, feel free to contact me, Joe Rosenbaum, or any of the lawyers at Rimon with whom you regularly work.

Berliner Mauer

When did construction of the Berlin Wall (Berliner Mauer) begin and when was it demolished?

General Colin Powell

The youngest person appointed as chair of the United States Joint Chiefs of Staff was General Colin Powell.

George Bernard Shaw

“Success does not consist in never making mistakes but in never making the same one a second time.”

Cyberspace Lawyer: The Force (Majeure) is Strong

Honored to have an article I (Joe Rosenbaum) wrote: “Managing Contract Risks & Remedies in a Time of Coronavirus”, published by Thomson Reuters in the June 2020 issue of Cyberspace Lawyer!  Many thanks to the Editor-in-Chief, Michael D. Scott, a long-time professional colleague and good friend!

Since that article was submitted for publication, an interesting new development arose at the end of June which was also posted here on Legal Bytes. A bankruptcy judge in Illinois has opined on at least one instance where a party to a real estate lease agreement can take advantage of such a clause. You can also read that update right here: COVID-19 and Force Majeure: What’s In Your Contract?

 

US Paycheck Protection Program (PPP) Extended

If you have been following Legal Bytes, then you know we have been following developments related to the various relief, incentive and stimulus programs being enacted and signed into law in the US (See Congress Provides Additional PPP Flexibility which includes links to many of the prior postings).

After Congressional passage of the legislation earlier last week, over this past July 4th weekend, President Donald Trump signed into law an extension of the application period for the Paycheck Protection Program (PPP) until August 8, 2020 and this morning applications were once again being accepted for the loans.  According to the SBA, there is still over $130 billion available in the fund.

We will continue to provide updates as they become available and as always, if you need more information or assistance you can always contact me, Joe Rosenbaum, or the Rimon Law lawyer with whom you regularly work. Stay safe, stay well!

U.S. Joint Chiefs

Who was the youngest person to be appointed chair of the United States Joint Chiefs of Staff?