Federal Regulatory Recap: A Summary of Recent Rulemaking Actions Taken or Proposed Affecting the Energy Industry
December 16, 2023 —
Anthony B. Cavender - Gravel2Gavel Construction & Real Estate Law BlogIt is clear that these have been busy months for federal environmental regulators, especially those working at EPA, the federal departments and the Council on Environmental Quality. Even the Department of Agriculture has found itself coping with greenhouse gases (GHG) issues in its administration of the laws applicable to agriculture and the national forests. The ambitious scope of the current “all of government” approach may be discerned after learning how many disparate federal agencies are employed in implementing this policy. So many actions have been proposed or completed that some state officials are experiencing “comment fatigue” because they are being overwhelmed by the scope, size, and complexity of these federal initiatives. The Environmental Protection Agency is, of course, at the forefront of these actions and activities, as described below.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
The Contractor’s Contingency: What Contractors and Construction Managers Need to Know and Be Wary Of
December 04, 2023 —
Skyler L. Santomartino - Peckar & Abramson, P.C.Contractors and construction managers who enter into cost reimbursable contracts subject to a guaranteed maximum price (GMP) are responsible for all project costs exceeding the GMP. For this reason, it is imperative that contractors negotiate and incorporate into the GMP a financial buffer that accounts for the unanticipated project costs that are not reimbursable as change orders or costs of the work. This is where the contractor’s contingency comes into play.[
1]
The contractor’s contingency is a vehicle that allows contractors to mitigate some of the risks inherent in GMP contracts. When drafted properly, a contingency clause allows the contractor and only the contractor to access funds set aside by the owner to address unpredictable or unknown project costs.
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Skyler L. Santomartino, Peckar & Abramson, P.C.Mr. Santomartino may be contacted at
ssantomartino@pecklaw.com
American Arbitration Association Revises Construction Industry Rules and Mediation Procedures
April 08, 2024 —
Dennis Cavanaugh & Larry Grijalva - Construction Law ZoneThe American Arbitration Association (AAA), one of the longest-standing and experienced alternative dispute resolution (ADR) administrators, has unveiled a significant update to its Construction Industry Rules and Mediation procedures. This update, last revised in 2015, became effective March 1, 2024. Changes to the AAA Construction Industry Rules are significant as these rules are incorporated by default in American Institute of Architects standard construction forms, which are widely used in the industry.
Advancements in remote access technology drive a substantial number of new changes. Others are designed to streamline the arbitrator appointment process and certain prehearing procedures and to make arbitration more cost-efficient by enhancing the arbitrator’s case management authority. Some of the more notable changes are:
Fast Track
F-1: The limit for cases eligible for AAA’s Fast Track Procedures has been increased from $100,000 to $150,000 so long as no claim or counterclaim exceeds that amount.
Reprinted courtesy of
Dennis Cavanaugh, Robinson & Cole and
Larry Grijalva, Robinson & Cole
Mr. Cavanaugh may be contacted at dcavanaugh@rc.com
Mr. Grijalva may be contacted at lgrijalva@rc.com
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White and Williams Celebrates 125th Anniversary
March 04, 2024 —
White and Williams LLPWhite and Williams LLP, a global-reaching law firm headquartered in Philadelphia, PA, is celebrating its 125th Anniversary. Since its founding in 1899, the Firm has grown to two hundred lawyers with offices in Connecticut, Delaware, Maryland, Massachusetts, New Jersey, New York, Rhode Island, and Pennsylvania.
“We are proud to celebrate our 125th anniversary. We are grateful to all of our clients for the trust that they place in our firm to handle their important litigation and transactional matters. The partnership we enjoy with our clients is special and a source of great pride to all of us at White and Williams. We are deeply committed to the success of our clients' goals and objectives,” stated Tim Davis, Managing Partner. “We look forward to celebrating this historic milestone with our clients, attorneys, staff and alumni throughout 2024,” added Davis.
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White and Williams LLP
Illinois Court of Appeals Addresses Waiver and Estoppel in Context of Suit Limitation Provision in Property Policy
February 05, 2024 —
James M. Eastham - Traub LiebermanIn Naperville Hotel Partners, LLC v. Liberty Mut. Fire Ins. Co., 2023 IL App (3d) 220440-U the Illinois Third District Court of Appeals addressed whether failure to include reference to a limitations provision in reservation of rights correspondence to an insured can be deemed a waiver of the provision or otherwise estop the insurer from relying on the provision.
The claim involved water damage sustained at the Insured’s motel as a result of numerous rain events that occurred between 2015 and 2020. Liberty Mutual issued an insurance policy that covered several buildings including the subject hotel. The policy required that any legal action based on the coverage had to be brought "within two (2) years after the date on which the physical damage occurred, extended by the number of days between the date you submitted the statement of loss to us and the date we deny the claim in whole or in part."
Plaintiffs filed their claim with Liberty Mutual in May 2019. In June of 2019 Liberty Mutual sent a reservation of rights letter to the Insured which requested more information and listed the "immediate written notice of loss" provision as a potential basis for excluding coverage but did not list the two-year time-limitation on legal action. Liberty Mutual also did not mention the provision in subsequent communications with the Insured.
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James M. Eastham, Traub LiebermanMr. Eastham may be contacted at
jeastham@tlsslaw.com
Real Estate & Construction News Roundup (10/04/23) – NFL Star Gets into Real Estate, DOJ Focuses on “Buyer-Broker Commissions”, and the Auto Workers’ Strike Continues
November 13, 2023 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, seller impersonation fraud becomes an issue in the United States, major retailers are closing over 3,000 stores nationwide, the Tampa Rays are set to construct a new $1.3 billion stadium, and more!
- NFL star Tyler Lockett is preparing for his life and career after football by becoming a real estate broker in both Washington state and Texas. (Brady Henderson, ESPN)
- Seller impersonation fraud has become a major scam in the United States with 73% of real estate firms reporting an increase in these schemes since the beginning of the year. (Diane Tomb, Fortune)
- “Buyer-broker commissions” are a focus for the U.S. Justice Department as they have filed a “statement of interest” in one case in Massachusetts while there are several other pending lawsuits in U.S. courts. (Mike Scarcella, Reuters)
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Pillsbury's Construction & Real Estate Law Team
Carbon Sequestration Can Combat Global Warming, Sometimes in Unexpected Ways
April 02, 2024 —
Michael S. McDonough, Robert A. James & Amanda G. Halter - Gravel2Gavel Construction & Real Estate Law BlogWhether by land, by sea or through human innovation, carbon sequestration is likely coming to (or already happening in) a destination near you. As our planet, overdosed on greenhouse gases, battles climate disasters, a logical solution is to simply stop pumping carbon dioxide into the air. Legislation worldwide is aimed at that target, but reducing output alone may not be enough. There are still billions of tons of extra CO2 already in the atmosphere—this crossroads is where sequestration comes into play.
Carbon sequestration is exactly what it sounds like—the storage of CO2. Once carbon is sucked out of the air, or in some cases pulled directly from industrial smokestacks, sequestration can be undertaken in a lot of different ways. Carbon storage happens naturally, when forests and oceans absorb and convert CO2 into organic matter, but carbon dioxide can also be artificially injected into deep underground rock formations (or wells), or in some cases technological approaches repurpose carbon into a resource like concrete, or as a catalyst in a closed-loop industrial system. However it’s accomplished, the point of sequestration is to stabilize carbon and ensure it doesn’t creep back into our atmosphere. Researchers, like those at the United Nations’ Intergovernmental Panel on Climate Change, now say that CO2 removal is vital to keeping global warming to 1.5 degrees Celsius (past that threshold, climate change could reach catastrophic levels). A 2023 University of Oxford study estimated that, currently, about two billion metric tons of carbon dioxide are being removed each year, primarily through land management (i.e., planting trees), and suggested that we need to double that amount to avoid dangerous global warming levels.
Reprinted courtesy of
Michael S. McDonough, Pillsbury,
Robert A. James, Pillsbury and
Amanda G. Halter, Pillsbury
Mr. McDonough may be contacted at michael.mcdonough@pillsburylaw.com
Mr. James may be contacted at rob.james@pillsburylaw.com
Ms. Halter may be contacted at amanda.halter@pillsburylaw.com
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DOI Aims to Modernize its “Inefficient and Inflexible” Type A Natural Resource Damages Assessment Regulations
March 25, 2024 —
Amanda G. Halter, Jillian Marullo & Ashleigh Myers - Gravel2Gavel Construction & Real Estate Law BlogThe U.S. Department of the Interior (DOI) published a
proposed rule aimed at modernizing and streamlining the “Type A” Natural Resource Damage Assessment (NRDA) regulations under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) and the Clean Water Act (CWA). (The comment deadline was later
extended.) The revisions,
first previewed in a January 2023 Advanced Notice of Proposed Rulemaking (ANPR), are intended to fulfill “the original statutory purpose of providing a streamlined and simplified assessment process” with the overarching goal of facilitating settlements and expediting restoration efforts following injury resulting from pollution in a broader range of cases.
The NRDA regulations provide two paths to assessing natural resource damages (NRD): (1) the more complex, site-specific Type B procedures for detailed NRDAs and (2) what is intended to be the standard, simplified Type A assessment procedures requiring minimal field observation. Particularly, the Type A process is reserved for two specific aquatic environments (coastal and marine areas or Great Lakes environments) when a relatively minor release of a single hazardous substance occurs, resulting in a smaller scale and scope of natural resource injury, and the rebuttal presumption for the Type A procedure is limited to damages of $100,000 or less under the current version of the rule.
Reprinted courtesy of
Amanda G. Halter, Pillsbury,
Jillian Marullo, Pillsbury and
Ashleigh Myers, Pillsbury
Ms. Halter may be contacted at amanda.halter@pillsburylaw.com
Ms. Marullo may be contacted at jillian.marullo@pillsburylaw.com
Ms. Myers may be contacted at ashleigh.myers@pillsburylaw.com
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