May 2013

NJ Ct. Vacates NJDEP Denial of Innocent Party Grant

During the early years of New Jersey’s remediation program, challenging decisions of the New Jersey Department of Environmental Protection (NJDEP) bordered on Quixotic mission. Times have changed, though, and courts are no longer intimated by NJDEP and we have discussed a number of cases where courts have overruled the agency’s decisions. See dry cleaner case and […]

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Fifth Circuit Affirms Dismissal of Bond Counsel in Bombing Range Case While Other Parties Settle

We have previously discussed the complex litigation involving a planned development on a portion of a World War 2 bombing range in Louisiana . In the latest installment of this saga, the Court of Appeals for the Fifth Circuit affirmed the dismissal of a legal malpractice claim filed against bond counsel in Coves of the Highland Community

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NYSDOH Issues New Guidance For Vermiculite Insulation

Back in April  2011, the New York State Department of Health (NYSDOH) Environmental Laboratory Approval Program (ELAP) along with the NYSDOH Bureau of Occupational Health (BOH) along with the NYS Department of Labor (DOL) issued a list of frequently asked questions (FAQs) that are commonly received by the agencies regarding asbestos analysis. This FAQ List was

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Parties Battle Over Scope of Seller’s Post-Closing VCP Obligations

Carroll Co. v. Sherwin-Williams Co., 2013 U.S. Dist. LEXIS 47349 (D.Md. 4/2/13) involved a dispute over the cleanup obligations of a seller. This case illustrates the drawback of having of a seller complete a cleanup after closing. In December 2005, Carroll Company (Carroll) entered into an Asset Purchase Agreement to purchase a chemical blending and

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NY Case Illustrates Dangers of Completing Environmental Questionnaires

The decision in Revell v Guido, 956 N.Y.S.2d 343 (App. Div-3rd Dept. 2012) is another example of the limits of “as is” contracts when it comes to environmental issues. The doctrine of caveat emptor is still valid in commercial transactions but may not insulate sellers from liability when they make misstatements in environmental questionnaires or

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Ct Allows Environmental Escrow Claim Agst FDIC To Proceed

What happens to a remediation escrow account when the funds are deposited in a bank that is subsequently closed and Federal Deposit Insurance Corp (FDIC) is appointed as a receiver? Some of the issues that need to be considered are illustrated in Kuruvilla Edukutharayil v. FDIC, 2013 U.S. Dist. LEXIS 8840 (N.D.Ill. 1/23/13). In this

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Methane Gas, an Apartment Complex and a Bankruptcy Filing

A federal bankruptcy court authorized the owner of the upscale Marble Cliffs Crossing Apartments complex in Columbus, Ohio to install a methane gas remediation plan over the objections of the purchaser of the mortgage note, holding that the plan was necessary to protect the safety of tenants and was critical for preserving the value of

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Ct Allows CERCLA Claim Agst Bank To Proceed In Methane Case

Back in October 2011, we discussed a failed $35MM development project where a bank sought damages from three environmental consultants for failing to anticipate methane gas problems at the development site. The plaintiff, BancorpSouth Bank, was a successor by merger to The Signature Bank that had financed the project. The project consisted of 150-acre site that

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Parties Must Proceed To Trial on Meaning of “Satisfactory Phase 1” Contingency

The twin rulings in Westwood Dev. Partners, LLC v. Draper, 2012 Del. Super. LEXIS 161, 2012 Del. Super. LEXIS 162  (Del. Super. Ct., Mar. 29, 2012) eluded our radar screen last year due to the end of the year crush of deals. While these rulings are admittedly a bit stale, we are sharing them since they provide

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