Environmental Due Diligence

Environmental Liability and “Fractional” Property Interests

CERCLA, Corporate and Real Estate Transactions, Environmental Due Diligence / By

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 […]

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Due Diligence and “Recapitalization” Transactions

Environmental Due Diligence / By

Many real estate fortunes were amassed following the savings and loan (S&L) crisis of the late 1980s when the Resolution Trust Corporation (RTC) sold loan portfolios owned by defunct S&L entities at what later proved to be distressed pricing. At the depth of the Great Recession, distressed asset firms quickly raised huge amounts of capital

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District Ct Holds Vapor Intrusion Is Imminent and Substantial Endangerment

common law, Disclosure of Environmental Liabilities, Environmental Due Diligence, Hazardous Waste, vapor intrusion / By

The recent decision in Sisters of Notre Dame De Namur v. Mrs. Owen J. Garnett-Murray, 2012 U.S. Dist. LEXIS 78747 (N.D. Cal. 6/6/12) is the latest example of how vapor intrusion has become a game changer for toxic tort and RCRA litigation. Vapor intrusion was the only potential exposure pathway since groundwater was not used

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Contamination at Heart of Litigation Over Failed Subdivisions

common law, Disclosure of Environmental Liabilities, Environmental Due Diligence, Hazardous Waste, Lender Liability / By

The Great Recession caused hundreds of residential development projects to ground to a halt. Not surprising, these failed projects have spawned lots of litigation. An interesting Maryland lawsuit involves allegations of fraud and misrepresentation of environmental issues at a development site, and has ensnarled a foreclosing lender. In U.S. Home v Settler’s Crossing, 2010 U.S.

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Bank Not Liable for Failing To Disclose Environmental Issues At Foreclosure Sale

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

In Rhima v JPMorgan Chase Bank, 2012 U.S. Dist.LEXIS 70492 (N.D.Tx. 5/18/02), plaintiff was the successful bidder at a foreclosure auction for a warehouse property. The advertised terms and conditions of the foreclosure sale offer indicated that bidders would be provided with environmental reports and access to the property for inspection but the sale was

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Non-Reliance Clause Bars Walk-Away Bidder From Recouping Diligence Costs

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

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

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11th Circuit Affirms No Liability For Developer In Florida Bombing Range Case

Disclosure of Environmental Liabilities, Environmental Due Diligence / By

The latest installment of our “Home on the Bombing Range” series takes us to Florida at the site of what is now known as the former World War 2 Pinecastle Bombing Range (PBR). Virgilio v. Ryland Group, Inc., 2012 U.S. App. LEXIS 10094 (11th Cir. 5/18/12) is a class action lawsuit brought by purchasers of

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Consultant Not Liable to Residents of Housing Complex For Not Identifying Vapor Risks

Brownfields, consultant malpractice, Disclosure of Environmental Liabilities, Environmental Due Diligence, vapor intrusion / By

A California state court dismissed a negligence claim brought against an environmental consultant by residents of the infamous Ujima Village low income housing complex for failing to identify health risks associated with a former oil storage facility. The 300-unit Ujima Village complex had been constructed on a portion of the former 122-acre Athens Tank Farm

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Bank Not Liable For Auction Sale of Contaminated Property

Environmental Due Diligence, Lender Liability / By

In Lusk v First Century Bank, 2012 W. Va. LEXIS 241 (Sup. Ct. 4/27/12), the plaintiff/petitioners purchased a commercial property at an auction foreclosure sale. The Notice of Trustee’s Sale and Regency’s advertising notice stated that the sale was subject to “environmental regulations” and that the property was being sold in an “as is” condition.

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