due diligence

NY State Court Affirms Broad Liability for Owners of Property With Old USTs

Environmental Due Diligence, oil spills, Underground Storage Tanks / By

Article 12 of the New York State Navigation Law imposes strict liability on “dischargers” of petroleum. The term “discharger” has been broadly construed so that it can encompass owners of property with abandoned or inactive underground storage tanks (USTs) even where the owners never used the tanks. A recent New York State appeals court illustrates […]

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Confusion Over Scope And Timing of RCRA Cleanup Leads to Potential Liability for Brownfield Developer

Brownfields, Corporate and Real Estate Transactions, Environmental Due Diligence, Hazardous Waste / By

Last year, the brownfield community was rattled by the Ashley II decision of United States District court for the District of South Carolina holding that a brownfield developer failed to comply with the requirements of the Bona Fide Prospective Purchaser defense. The court ruled the developer did not comply with its post-closing continuing care obligations

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The Importance of Hiring an Environmental Consultant For Leaking NYC Heating Oil Tanks

consultant malpractice, Environmental Due Diligence, Navigation Law, oil spills, Underground Storage Tanks / By

Most buildings in New York City have fuel oil-fired burners to supply heat and hot water. The heating oil can range from #2 oil which is similar to diesel fuel to #6 fuel oil which is heavy and thick. Buildings typically store the fuel in storage tanks located in basements or beneath the sidewalk. The tanks

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Should a Vapor Encroachment Condition (VEC) Always Be a REC?

vapor intrusion / By

In a recent ASTM conference call, several consultants took the position that they could not envision a circumstances under which a “vapor encroachment condition” (VEC) identified pursuant to ASTM E2600-10 would not be a “recognized environmental condition” (REC) pursuant to ASTM E1527-05. I was surprised by this statement and therefore have decided to post about

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CMBS Lender Kept In Case Over Questions About Environmental Disclosure

Lender Liability / By

The federal district court for the Southern District of New York denied a motion to dismiss filed by Morgan Stanley Mortgage Capital, Inc (MSMC)that it failed to adequately disclose environmental conditions at a shopping center and should not be required to buy back the $81MM loan. This case has some yummy nuggets. In this case,

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NY Case Illustrates Why Borrowers Should Not Simply Rely on Lender Approval of Phase 1

consultant malpractice, Environmental Due Diligence / By

Lenders have long played a role as “surrogate regulator” in transactions. In many cases, lenders force potential borrowers to investigate suspected contamination and frequently require remediation under state oversight. Borrowers often balk at these requests any may even retain their own independent consultants to try to convince lenders that the work is not required or

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State Court Decision Ilustrates Dangers of Inadequately Evaluating Neighboring HRECs

Environmental Due Diligence / By

The ASTM E1527 Phase 1 standard contains a term “Historic Recognized Environmental Condition” or HREC. The term was added to the standard in 2000 to provide a tool for consultants to help distinguish between properties where there was a release in the past that was satisfactorily remediated with sites that have historic contamination that have

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State Appeals Court Affirms Damage Award Against Bank for Sale of Contaminated Property

Lender Liability / By

A New Jersey Appeals Court refused to disturb a $248,928 damage award against a bank involving a sale of contaminated property. The plaintiff had argued that the trial court had erred in calculating the damages flowing from the bank’s breach of contract. In Ritschel v. Spencer Savings Bank,SLA, 2011 N.J. Super. Unpub. LEXIS 1257 (May 16, 2011),

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Consultants Survive Lawsuit For Negligent Investigation and Remediation of Brownfield Site

Brownfields, consultant malpractice, Environmental Due Diligence / By

Buyer agreed to purchase former oil field in 1996 to develop for residential complex.  Contract included 40 pages detailing  remedial obligations of parties. Buyer had five years to complete investigate of property and inform seller of contamination. If cleanup exceeded $30MM, seller could take over cleanup. Contract also provided that after completion of sellers’ corrective

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Brokers in the Cross-Hairs For Environmental Disclosure

Disclosure of Environmental Liabilities, Environmental Due Diligence / By

With property values continuing to plummet in the wake of the Great Recession, it is probably not surprising that brokers are increasingly finding themselves embroiled in lawsuits over scope of environmental disclosure. The risk is particularly heightened in states with Property Conditions Disclosure laws. Common issues involve mold, lead-paint, asbestos, radon, poor drinking water quality and leaking home

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