by Terri Jo Neff | Aug 11, 2021 | News
By Terri Jo Neff |
Farm Bureau Financial Service and one of its Arizona representatives is not liable for the fact a group of developers lost funding for a hotel – casino in Puerto Peñasco, a coastal town in Mexico commonly known as Rocky Point, the Arizona Court of Appeals has ruled.
Last week a three-judge appellate panel affirmed a Pima County Superior Court judge’s ruling last year which dismissed a 2016 lawsuit filed by Cholla Bay Hotel Group LLC; CBHG Management S.A. DE C.V.; Desert Springs Equestrian Center LLC, and Lorilei Peters, who was a principal of Desert Springs Equestrian.
The various plaintiffs -collectively referred to as the CBHG plaintiffs- sued for defamation as well as tortious interference in a business expectancy and contract due to Farm Bureau information Cully provided to private investigators.
Those investigators were hired by Grupo Financiero IMBURSA in 2013 to conduct a due diligence review of the CBHG plaintiffs related to a $15 million loan for construction of a hotel and casino in Rocky Point. The loan, according to the lawsuit, was to be funded by Grupo Financiero and guaranteed by the Mexican government.
CBHG also alleged a Mexican government agency had approved it for a gaming license within Mexico.
In their lawsuit, the CBHG plaintiffs alleged the development loan was denied due to negative information Farm Bureau provided to the investigators. That involved a 2010 insurance claim for theft made by Peters on behalf of Desert Springs Equestrian with a value of more than $250,000.
The lawsuit alleged the letter “recklessly made false allegations of criminal conduct on behalf of Ms. Peters in connection with an allegedly fraudulent theft claim.” It also alleged Farm Bureau and Cully improperly sent a referral to the Arizona Department of Insurance and the National Insurance Crime Bureau, which the CBHG plaintiffs asserted was defamation.
In response to the lawsuit, Farm Bureau asserted that CBHG failed to produce admissible evidence of the existence of the $15 million loan, the hotel franchise agreement in Rocky Point, or a Mexican gaming license. Farm Bureau also argued the documents which were produced by the CBHG plaintiffs could not be authenticated and some bore “several hallmarks of being a forgery.”
Without validated evidence, CBHG could not substantiate its claim of a business expectancy, a judge with the Pima County Superior Court ruled in dismissing the CBHG lawsuit. The dismissal order noted the plaintiffs’ business expectancy claims were “too attenuated, speculative.”
CBHG timely appealed, arguing the judge erred in rejecting admissible evidence and in not properly addressing the defamation claim. The appeal also challenged the lower court’s opinion that CBHG’s business-expectancy claim was too attenuated and speculative.
But according to the unanimous appellate decision, CBHG had to show the existence of a valid contractual relationship or business expectancy in order to prove intentional interference with business expectancy and contract.
The burden of proof was on the CBHG plaintiffs to provide a showing of “a business relationship evidenced by an actual and identifiable understanding or agreement which in all probability would have been completed if the defendant had not interfered.” Judge Sean Brearcliffe wrote in the appellate decision.
“Simply stating that the documents have a government stamp on the first of sixty-five pages and having a third party with no personal knowledge of either the characteristics of the stamp or the ministry’s receipt of the documents testify, is not sufficient,” Brearcliffe wrote. “CBHG was unable to produce admissible evidence below to create a genuine issue of material fact as to the existence of a valid contractual relationship or business expectancy.”
As to the defamation claim, the court of appeals ruled insurance companies such as Farm Bureau have a statutory duty to refer claims they believe to be fraudulent to the Insurance Fraud Unit of the Arizona Department of Insurance.
The CBHG plaintiffs, jointly or individually, have until Sept. 6 to file a petition for review to the Arizona Supreme Court.
by Corinne Murdock | Aug 10, 2021 | News
By Corinne Murdock |
State Senator Nancy Barto (R-Phoenix) reminded Arizonans last week that off-label treatments are legal during public health emergencies, including the COVID-19 pandemic. Barto cited her bill, SB1416, which was signed into law in May.
Barto explained the significance of the law during a radio interview on Monday. According to the senator, the law grants flexibility for health care providers to offer more tailored treatments to their patients.
“We know how important early treatment and prevention is in health care,” said Barto. “Expanding access to certain off-label medications during a pandemic can be life-saving in this fight, and physicians need every tool in the toolbox to appropriately treat patients without fear of losing their license.”
Last month, Governor Doug Ducey rescinded restrictions on the filling of two off-label drugs some prescribed for COVID-19: hydroxychloroquine and chloroquine. This further allowed health care providers flexibility, complementing Barto’s law:
“ ‘Lawful health care service’ means any health-related services or treatment, to the extent that the service or treatment is allowed or prohibited by law or regulation, including the off-label use of medications during a public health emergency, that may be provided to persons or businesses that are otherwise allowed to offer such services,” reads the law. “‘Off-label use’ means any use if the intent is the practice of medicine and the use is not specified in the labeling or indications for use for prescription drugs, biologics, approved medical devices and dietary supplements approved by the United States food and drug administration.”
Hydroxychloroquine and chloroquine aren’t recommended currently by the FDA to treat COVID-19. The FDA cautioned that the drug could cause heart rhythm problems, and the National Health Institute (NIH) assessed that it could work in theory but has failed in terms of both safety and efficacy.
In the case of COVID-19, treatments like Ivermectin have been popularized as off-label treatment options. When previous President Donald Trump contracted COVID-19 last October, he was given a cocktail of off-label drugs including: dexamethasone, remdesivir, and Regeneron’s monoclonal antibody. The president was also given zinc, Vitamin D, famotidine, melatonin, and aspirin.
Those are a few of several treatments approved by the FDA. For more severe cases, patients may be given Veklury (remdesivir). Monoclonal antibody treatments include sotrovimab, REGEN-COV (casirivimab and imdevimab), and Olumiant (baricitinib). Other treatments include the immunosuppressive Actemra (tocilizumab).
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinnejournalist@gmail.com.
by Corinne Murdock | Aug 10, 2021 | News
By Corinne Murdock |
Congressman Andy Biggs (R-AZ-05) announced on Friday that he will file articles of impeachment against Department of Homeland Security (DHS) Secretary Alejandro Mayorkas over the burgeoning border crisis.
In a press release, Biggs called Mayorkas a threat to the country. Biggs intends to file the articles of impeachment in the coming weeks. The congressman hasn’t specified a date.
“Secretary Mayorkas is a threat to the sovereignty and security of our nation. As a result of his actions and policies, America is more in danger today than when he began serving as Secretary. He is willfully refusing to maintain operational control of the border and is encouraging aliens to enter our country illegally,” stated Biggs. “Under his direction, DHS is systematically releasing COVID-19 positive aliens into our communities, subjecting the American people to unnecessary and avoidable risks. Secretary Mayorkas is failing to faithfully uphold his oath of office and is presiding over a reckless abandonment of border security and immigration enforcement, at the expense of the U.S. Constitution and the security of the United States.”
Mayorkas hasn’t issued a response to Biggs’ promise.
AZ Free News reached out to both Biggs and Mayorkas for comment. Neither responded by press time.
Another leading the charge on Mayorkas’s removal is Congressman Chip Roy (R-TX-21). Last Monday, Roy advocated for Mayorkas’ impeachment.
“It’s time to draw a line in the sand, for the sake of our country, our communities, our kids, and those who seek to come here. It’s time to impeach @SecMayorkas for failing to uphold immigration law, enforce Title 42, and secure our border,” said Roy. “We demand a secure border and safe neighborhoods. It’s our country. These are our terms.”
https://twitter.com/chiproytx/status/1422278133470973961
As context for his call to impeach Mayorkas, Roy cited the preliminary border patrol numbers on illegal immigrants for July. This included over 205,000 encounters, with 37,400 total known “gotaways.” For the fiscal year 2021, there are 1.3 million of those so far.
Gotaways are illegal immigrants that are observed breaching the border but not apprehended.
Roy noted that these totals reflect the largest monthly encounter for illegal immigrants in all of DHS history. The current total is bigger than every full-year total since last year. In addition to that data, Roy shared that agents and officers have seized over 8,500 pounds of fentanyl during the first nine months of fiscal year 2021 – enough to kill every American citizen five times over.
Then on Monday, Rody led 21 House Republicans to demand answers on the Biden Administration’s border crisis from Mayorkas and DHS on Monday.
“[The] numbers are appalling and are a direct result of the Biden Administration’s weak border policies and your lackluster performance as the Secretary of the Department of Homeland Security. DHS’s mission is ‘with honor and integrity, we will safeguard the American people, our homeland, our values.’ Frankly, you are not fulfilling that mission,” wrote Roy. “The southern border is in crisis despite the Biden Administration’s refusal to call it what it is. The American people can see the numbers, and Americans in communities across the nation are feeling the burden of our open borders.”
The House Republicans requested information including any executive orders to repeal or rescind policies in effect before President Joe Biden’s inauguration, the total number of illegal immigrants (including children) and their demographics, the number of U.S. Customs and Border Patrol (CBP) and Office of Field Operations agents who were reassigned from border patrol sectors to shelters detaining illegal immigrants, the number and handling of COVID-19 positive illegal immigrants, and information on all illegal immigrant shelter operations and their funding.
Biggs didn’t sign onto Roy’s letter.
Representatives Randy Weber (R-TX-14)), Beth Van Duyne (R-TX-24), Michael Cloud (R-TX-27), Debbie Lesko (R-AZ-08), Marjorie Taylor Greene (R-GA-14), Gregory Steube (R-FL-17), Doug Lamborn (R-CO-05), Troy Balderson (R-OH-12), Glenn Grothman (R-WI-06), Vern Buchanan (R-FL-16), Bob Gibbs (R-OH-07), Matthew Rosendale (R-MT), David Rouzer (R-NC-07), Dan Bishop (R-NC-09), Lauren Boebert (R-CO-03), Bob Good (R-VA-05), Barry Moore (R-AL-02), Madison Cawthorn (R-NC-11), and Jody Hice (R-GA-10) signed onto the letter.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinnejournalist@gmail.com.
by Terri Jo Neff | Aug 9, 2021 | News
By Terri Jo Neff |
The owners and operators of the several critical pipelines which crisscross Arizona have been directed by the Department of Homeland Security’s Transportation Security Administration (TSA) to make cybersecurity a priority, the second such mandate this year.
A Security Directive issued in late July requires owners and operators of TSA-designated critical pipelines which transport hazardous liquids such as gasoline, diesel, and jet fuels, as well as natural gas (also known as methane) to implement a number of “urgently needed” protections against cyber intrusions.
The mandate also applies to dedicated high vaper pressure (HVP) pipelines used for the transport of liquefied petroleum gases (LPGs) such as propane, normal butane, and isobutane.
According to the Arizona Corporation Commission, Arizona is served by several interstate pipeline transmission systems including Cross Country Energy Corp’s Transwestern Pipeline, Dominion Energy’s Southern Trails Pipeline, Energy Transfer Partners’ Transwestern Pipeline, Kinder Morgan’s El Paso Natural Gas, Mohave Pipeline, Questar’s Southern Trails Pipeline, Southwest Gas, and TransCanada’s North Baja Pipeline.
There are then several intrastate distribution and transmission pipelines, including Abbott Nutrition, Alliant Gas Arizona, Applied LNG Technologies, Arizona Public Service, Calpine Pipeline, Desert Gas Services, Duncan Rural Services, Gila River Power, Mineral Park Mine, Nucor Steel Kingman, Pimalco Aerospace Aluminum, Plains LPG Services, Swissport Fueling, UniSource Energy, and Zapco / Biogas Energy Tactics.
The recent Security Directive requires those operating critical pipelines to put into place mitigation measures to protect against ransomware cyberattacks and other threats to information technology and operational technology systems. They must also develop and implement a cybersecurity contingency and a recovery plan, and conduct a cybersecurity architecture design review.
“Through this Security Directive, DHS can better ensure the pipeline sector takes the steps necessary to safeguard their operations from rising cyber threats, and better protect our national and economic security,” according to Alejandro Mayorkas, Secretary of Homeland Security. “Public-private partnerships are critical to the security of every community across our country and DHS will continue working closely with our private sector partners to support their operations and increase their cybersecurity resilience.”
DHS and TSA issued an initial Security Directive in May following a ransomware on Colonial Pipeline, which moves gasoline, diesel, and jet fuel from Texas to the eastern United States. Colonial Pipeline paid a $4.4 million ransom to hackers who accessed the company’s billing software, triggering a pipeline shutdown until it was certain the cyberattack had not targeted the company’s operational software.
The May directive mandated the reporting of all confirmed and potential cybersecurity incidents to DHS’s Cybersecurity and Infrastructure Security Agency (CISA). Each pipeline owner or operator was also required to immediately designate a Cybersecurity Coordinator who would be available 24 / 7 to federal officials.
There was also a requirement for an internal review of all current cybersecurity practices by the end of June, as was a report to TSA and CISA of all gaps in remediation measures.
TSA’s heightened attention on pipeline cybersecurity issues follows the agency’s efforts over the last two decades to enhance the physical security preparedness of hazardous liquid and natural gas pipeline systems across the country.
by AZ Free News | Aug 9, 2021 | News
The Arizona Attorney General’s Office is warning consumers to be on alert against property rental scams. As the Arizona housing market continues to price many out of purchasing a home, a growing number of residents are seeking rental properties.
According to the Arizona Attorney General’s Office (AGO), scammers are seizing the opportunity to prey on unsuspecting consumers. Two of the most prevalent scams involve individuals advertising rental properties that they do not own or manage, and individuals advertising rental properties as a way to obtain personal and banking information to steal identities.
Landlords looking to lease their property are also advised to be aware of individuals offering to pay deposits or rent with certified funds in excess of the actual amount owed, and requesting the excess funds be wired back to the renter. Return the check or wait until the certified funds have cleared your account before returning any excess funds.
The AGO offers the following tips to consumers seeking to rent homes and apartments:
- Be skeptical of rental prices “well below” market price for similar properties.
- Look up the property address on a search engine to verify that the property is not “for sale” elsewhere, or physically drive by the property to verify that it actually exists.
- Be wary of poorly written rental descriptions that include misspellings or bad grammar.
- Avoid companies or individuals listing rental properties who are not reachable by phone during normal business hours; who tell you that they are out of state or out of the country; or who request communication via text only.
- Be skeptical of companies or individuals charging “up front” fees in addition to the normal application and credit check fees.
- Always be wary of companies or individuals requesting personal information such as your social security number and bank account information up front.
- Don’t pay the security deposit until you have a signed lease.
- Avoid companies or individuals requesting payments be sent overseas or by wired funds, gift cards or through peer-to-peer payment apps (such as Cash App).
- Deal with reputable companies or agents who have appropriate licenses.
There are several online resources available for consumers to check appropriate licenses and review information regarding a company’s reputation. The Arizona Department of Real Estate contains information regarding licensed Real Estate Professionals. The Better Business Bureau is also a good source of information regarding a business’ reputation.
by Corinne Murdock | Aug 8, 2021 | Education, News
By Corinne Murdock |
Maricopa Community Colleges (MCCCD), announced they will offer educational events on critical race theory and other social justice topics through new “Cultural Humility and Equity Office Hours.” Both students and faculty may participate in these optional events, which run from next week until the end of 2022.
The content of the Cultural Humility and Equity Office Hours challenges recently-passed state laws. House Bill (HB) 2898 prohibits schools from teaching students that any race, ethnic group, or sex is superior to another and/or deserving of discrimination. Schools in violation of the law may be fined up to $5,000 for each violation. House Bill (HB) 2906 prohibits the state and any local government from requiring employee trainings, orientations, or therapies suggesting that someone is inherently and either consciously or subconsciously racist, sexist, or oppressive. Governor Doug Ducey signed both bills into law over the course of this summer; however, they don’t go into effect until September 29.
Although these Cultural Humility and Equity Office Hours are characterized as optional, MCCCD Board Member Kathleen Winn told AZ Free News that there’s an unofficial expectation for faculty to participate. This pressure reportedly comes from the Faculty Executive Committee (FEC).
“[The faculty] are in fear. When something like this happens and they feel differently, they pretty much just suck it up because what happens is retaliation. Retaliation is alive and well at the community college. They retaliate against someone that’s against their doctrine,” explained Winn.
As of press time, AZ Free News learned that none have taken legal action against MCCCD.
MCCCD Office of Diversity, Equity, Inclusion, and Engagement (DEIE) issued the announcement last week. Their first event, “Racelighting and Critical Race Theory,” will occur on Wednesday. According to the supplementary reading list for the event, racelighting is a take on gaslighting in which members of any race except the white race second-guess their experiences of racism and/or don’t recognize that negative life circumstances or events are a result of systemic racism.
Other readings for Wednesday’s event include a bill of rights for “people of mixed heritage,” and a 2014 article discussing critical race theory in K-12 and higher education. Critical race theory proponents have argued that critical race theory isn’t being taught in K-12 schools.
The other upcoming events for this year are: “Hiring Equity” with Professor Jaime Herrera, September 1; “Deferred Action for Childhood Arrivals (DACA),” September 8; “Dismantling Microaggressions in STEM and MCCCD” categorized as a “nationally recognized student-led session” and led by Dr. Nicole Neal, Chandler-Gilbert Community College, and students, date to be determined; “Structural Oppression in Higher Education: Accessibility” with Drs Jo Pina and Karen Winters, Justin Yarbrough, and Lisa Hitzler, October 13; “The Shift of Political Parties in the U.S.” by Professor John Coughlin, November 3; and “The Power of Music” by Professor Rod Golden. Next year, there is currently one event scheduled for each month.
Next year’s topics include “Educational Equity: The Ungrading Project,” “Educational Equity: What LGBTQT Students Want,” “Intersecting Religion with other Social Identities,” and “What it Means to Be White in the USA.”
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinnejournalist@gmail.com.
