When environmental lawyers explain the scope of CERCLA liability to property owners, we frequently tell them that they could be liable for all contamination at a property even that dating back to the Civil War. Of course, an southern attorney might refer to that 19th century conflict as the War Between the States or the […]
Ct in MGP Case Awards Orphan Share For Civil War Era Read More »
The 2009 bankruptcy filing of Tronox, Inc. has spawned some interesting litigation. A trial commenced in May in the bankruptcy court for the Southern District of New York where a Litigation Trust formed as part of the Tronox reorganization plan is seeking $25B in damages from Kerr-McGee, a subsidiary of Anadarko Petroleum. Tronox, a manufacturer
In U.S. v. NCR Corp., 2012 U.S. App. LEXIS 16097 (7th Cir. 8/3/12) the United States Court of Appeals for the Seventh Circuit declined to adopt the Third Restatement of Torts reflecting a national trend away from joint liability. This ruling seems to fly in the face of the legislative history of the Comprehensive Environmental
7th Circuit Declines To Apply Third Restatement of Torts in Apportionment Case Read More »
A majority of justices found that the individual mandate of the Affordable Care Act violated the Commerce Clause of the U.S. Constitution in National Federation of Independent Businesses v Sebelius. The Commerce Clause is the underpinning for the jurisdiction of the federal government to enact and enforce environmental laws such as CERCLA and RCRA. Thus,
Obamacare Survives But Will CERCLA or RCRA? Read More »
Last week, we discussed due diligence for transactions involving purchases of equity interests in entities that own property that are in technical default of the mortgages. This post discusses potential environmental liability for fractional ownership interests in the underlying property. First year saw students are taught in Real Property Class that property ownership consists of
Environmental Liability and “Fractional” Property Interests Read More »
The Delaware Supreme Court ruled that a bidder that declined to proceed with a $170 million could not recover recoup $1.2 million in due diligence and negotiation costs. In RAA Management, LLC v. Savage Sports Holdings, Inc., 2012 Del. LEXIS 271 (Del. 5/18/12) , investment fund RAA Management (RAA) was invited by an investor bank
Non-Reliance Clause Bars Walk-Away Bidder From Recouping Diligence Costs Read More »
The most recent decision in Flake v. Schrader-Bridgeport Int’l, Inc., 2011 U.S. Dist. LEXIS 30372 (M.D. Tenn., Mar. 23, 2011) is just another chapter in this long-running environmental saga involving a successor liability, bankruptcy, toxic tort and environmental justice issues along with a piece of American automotive history. This well-traveled case began in a Tennessee county
Environmental Saga Involves Successor Liability, Bankruptcy and Environmental Justice Read More »
It is hard to tell if Malcolm Carter Enterprises v. Microsemi Real Estate, Inc., 2011Cal. App. Unpub. LEXIS 3583 (Ct. App.-4th Div 5/12/11) is a case of buyer’s remorse, sloppy drafting or simply the lack of a meeting of the minds. It is surprising that what should have been a fairly straight-forward transaction resulted in
Was It Buyer’s Remorse, Sloppy Drafting or Simply No Meeting of the Minds? Read More »
In Precision Brand Products. v. Downers Grove Sanitary District, 2011 U.S. Dist. LEXIS 88009 (N.D. 8/811), the Illinois Environmental Protection Agency (“IEPA”) detected TCE in private wells serving a residential community adjacent to the Ellsworth Industrial Park (EIP) in Downers Grove, Ill in 2001. The federal EPA conducted an investigation and issued PRP notices. A
Court Finds No Successor or Parent Liability For “Indirect” (Grandparent) Corporation Read More »
In the usual veil piercing case, a plaintiff asks a court to disregard a corporate entity so the assets of the owner can be used to satisfy the liability of the entity. However, sometimes the plaintiff seeks to use corporate assets to satisfy the debts of a shareholder under a theory known as “reverse veil-piercing”.