Environmental Due Diligence

Regulatory Re-Interpretation Triggers Contractual Indemnity

Air Pollution, Corporate and Real Estate Transactions, Disclosure of Environmental Liabilities, Environmental Due Diligence /

Historical environmental compliance is critically important in corporate transactions especially when a business or facility may be subject to a regulatory programs that is evolving or subject to re-interpretation such as the New Source Review program. In such cases, the parties will try to contractually allocate the risks. Despite the fact that these agreements are […]

Regulatory Re-Interpretation Triggers Contractual Indemnity Read More »

Bankruptcy Discharge Bars Claim of Purchaser Agst Former Oil Well Operator

bankruptcy, Environmental Due Diligence, oil spills /

In Shelton Property Rural Acreage, LLC v Placid Oil Co., 2011 U.S. App. LEXIS 16681 (5th Cir. 8/10/11), Placid Oil operated oil wells on leased property from 1942 to 1956. In 1986, Placid filed a chapter 11 bankruptcy proceeding. The bankruptcy court issued a confirmation order in 1988 that contained a discharge of all claims

Bankruptcy Discharge Bars Claim of Purchaser Agst Former Oil Well Operator Read More »

Statute of Limitations Bars Purchaser’s Claim For 1981 Pipeline Spill

Disclosure of Environmental Liabilities, Environmental Due Diligence, oil spills /

In Carolyn Vickers Inc. v. Unocal Corp., 2011 Cal. App. Unpub. LEXIS 9642 (Ct. App-2nd Dist. 12/19/11), Alan Little Ventures (ALV) purchased a 4.1 acre tract of land in San Luis Obispo in 2005. The land had been subdivided into 17 lots by the sellers, Phyllis and Alex Madonna (the “Madonnas”), and was zoned for

Statute of Limitations Bars Purchaser’s Claim For 1981 Pipeline Spill Read More »

California Appeals Court Rules Reopening of NFA Letter Does Not Trigger Contractual Indemnification

common law, Corporate and Real Estate Transactions, Environmental Due Diligence, oil spills, Underground Storage Tanks /

Anyone who has negotiated the purchase of a gas station is aware that these agreements are incredibly complex. The contracts have dense definitions, dependent and inter-related provisions, and grant broad discretion to the sellers in determining the scope and conduct of the cleanup. A buyer who does not retain an environmental attorney who has previously

California Appeals Court Rules Reopening of NFA Letter Does Not Trigger Contractual Indemnification Read More »

NJ Appeals Court Rules ISRA Does Not Provide Basis for Voiding Sale of Tax Lien

Environmental Due Diligence /

The New Jersey Industrial Site Recovery Act (“ISRA”, f/k/a Environmental Cleanup Resonsibility Act or “ECRA”) requires industrial establishments to undergo environmental investigation and cleanup when they are to be closed or transferred. I have always felt that if we had a national ISRA law, the country would have a lot fewer brownfield sites. One of

NJ Appeals Court Rules ISRA Does Not Provide Basis for Voiding Sale of Tax Lien Read More »

Acquisitions Bring CERCLA Liability to Banking Conglomerate

CERCLA, Corporate and Real Estate Transactions, Environmental Due Diligence, Lender Liability /

From a purely legal standpoint, the recent ruling In Tennessee v. Roane Holdings Ltd., 2011 U.S. Dist. LEXIS 143703 (E.D.TN 12/14/11) was not unusual. The court ruled on a motion to dismiss that a party who had entered into an administrative order on consent could not bring a cost recovery action under CERCLA section 107

Acquisitions Bring CERCLA Liability to Banking Conglomerate Read More »

Foreclosing Banks Increasingly Using Environmental Insurance For Sales Risks

Corporate and Real Estate Transactions, Environmental Due Diligence, Lender Liability /

As the nation slowly lifts itself out of the effects of the Great Recession, lenders are beginning to increase the pace of foreclosures on commercial properties. The volume of foreclosures is likely to significantly increase during the next few years as the loans that were originated during the height of the credit bubble become due.

Foreclosing Banks Increasingly Using Environmental Insurance For Sales Risks Read More »

No Administrative Claim For Hotel Damaged By Methane from Bankrupt Landfill Operator

bankruptcy, Corporate and Real Estate Transactions, Environmental Due Diligence, Lender Liability /

It seems like there were a lot of cases in 2011 involving commercial properties impacted by methane gas from former landfills. A recent case involved a novel question if the owner of a hotel damaged by methane gas migrating from a landfill could seek administrative claim status in a chapter 7 bankruptcy case. In the

No Administrative Claim For Hotel Damaged By Methane from Bankrupt Landfill Operator Read More »

A Lawyer, an Underwriter and an Appraisor-An Update

Brownfields, Disclosure of Environmental Liabilities, Environmental Due Diligence, Lender Liability /

The title of this post sounds like a teaser to a bad joke but unfortunately it refers to the latest round of motions in two sprawling lawsuits involving a defunct planned community that was to be developed on what proved to be a part of a world war 2 bombing practice range. The defendants include

A Lawyer, an Underwriter and an Appraisor-An Update Read More »

Ct Upholds Limitation of Liability in Consultant Negligence Case

asbestos, consultant malpractice, Environmental Due Diligence /

When retaining environmental consultants, one of the key issues to review in the consultant’s standard terms and conditions is the limitation of liability (LOL) clause. This clause frequently seeks to cap the consultant’s liability at the amount of its fees. Because consultants are usually expected to carry at least $1MM in liability coverage,  clients often want consultants to be liable

Ct Upholds Limitation of Liability in Consultant Negligence Case Read More »

Scroll to Top