The Real Estate Bloom
The real estate industry is booming in states where marijuana is blooming—that is, in states that have legalized the medicinal and recreational use of marijuana. Here is a quick overview. In November 2016, voters in California, Maine and Massachusetts, all approved the legalization of recreational marijuana use. On January 1, 2018, California’s law will go into effect, and the state will start issuing temporary licenses to cannabis businesses. On December 6, 2017, Los Angeles approved a series of cannabis regulations, making it the largest city in the United States with legal recreational marijuana. Massachusetts will implement retail marijuana sales on July 1, 2018. While Maine has plans to open retail marijuana stores in the summer of 2018, it is unclear exactly when their laws will go into effect. Continue Reading ›
EPA Declines To Issue CERCLA Financial Responsibility Rules For Hardrock Mining Industry But Leaves Open What It Might Do For Other Industries
Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), commonly referred to as Superfund, was enacted in December 1980, and Section 108(b) provides that the Environmental Protection Agency (EPA) shall promulgate, no later than December 11, 1985, financial responsibility requirements for classes of facilities—designated by EPA—consistent with “the degree and duration of risk associated with their production, transportation, treatment, storage or disposal of hazardous substances.” Despite this directive, EPA has not issued any financial responsibility rules under Section 108(b). This record of inaction prompted a lawsuit demanding compliance with the law.
Seventh Circuit, Critical of Purchasing Company’s Due Diligence, Declines to Find Seller Breached of the Duty of Good Faith
On November 27, the U.S. Court of Appeals for the Seventh Circuit decided the case of Betco Corporation v. Peacock, et al., which concerns a contractual dispute between the buyer and the seller of companies that produce and market a biodegradation product that is utilized in waste management and control. After paying out the escrow contemplated by the parties’ contract, Betco Corporation (Betco) “discovered that certificates of analysis were being re‐used or falsified by the sales team.” Critical of Betco’s due diligence efforts, the Seventh Circuit held that Betco
“failed to develop its argument in the district court that its breach of contract claim was in fact a claim for intentional misrepresentation that should have survived the Agreement’s one‐year time limit. Thus, it waived this claim, and we decline to hear its merits.
However, Betco did not waive its claim against Malcolm Peacock for breach of the duty of good faith. But our only inquiry in analyzing this claim is whether Malcolm acted in a way that injured or destroyed Betco’s ability to receive the benefits of the contract. Because Betco proffered no evidence at trial of consumer complaints, it cannot show that it was deprived of its contractual expectations. To the contrary, Betco received a company producing a successful line of products to the satisfaction of its customers.”
Ninth Circuit Confirms That Defendant Had Fair Warning That His Conduct Violated The CWA
On November 27. the U.S. Court of Appeals for the Ninth Circuit decided an important Clean Water Act (CWA) jurisdictional case, United States. The Ninth Circuit unanimously affirmed the defendant’s criminal convictions for knowingly discharging dredged or fill material from a point source into a “water of the United States” on private property without a permit. At issue was whether the Government proved that these waters were subject to the CWA in accordance with Justice Kennedy’s concurring opinion in Rapanos v. U.S., which set forth the “significant nexus” test for jurisdiction over certain wetlands.
Fourth Circuit Issues Ruling Protecting Actions of Nuclear Plant Operator
On November 20, the U.S. Court of Appeals for the Fourth Circuit decided the case of Cox, et al., v. Duke Energy, Inc. et al., affirming the ruling of the U.S. District Court for the District of South Carolina’s grant of the defendants’ motion for summary judgment in a 42 U.S.C. § 1983 civil rights lawsuit, holding
“(1) that Fleming had validly waived his right to sue the Darlington County Sheriff’s Office, the Sheriff, and the deputies; (2) that Duke Energy and its vice president were private actors not operating “under color of” state law as required for liability under § 1983; and (3) that Fleming’s remaining state law claims were preempted by federal law’s exclusive regulation of nuclear safety.”
DC Circuit Upholds Validity of Crossing Agreement Between Michigan State Officials and the Government of Canada
On November 21, the U.S. Court of Appeals for the District of Columbia, in Detroit International Bridge Company v. Government of Canada, et al., affirmed the ruling of the U.S. District Court for the District of Columbia that a 2012 “Crossing Agreement” between State of Michigan officials and the Government of Canada authorizing the construction of a second bridge to span the Detroit River separating Detroit and Windsor, Canada, was a legal exercise of their legal authority.
Association of Irritated Residents v. Kern County: Temporary Shutdown Does Not Reset the Baseline for CEQA Environmental Analysis
On November 21, the California Fifth District Court of Appeal issued its decision in Association of Irritated Residents v. Kern County Board of Supervisors, 2017 WL 5590096, a challenge to the County’s Environmental Impact Report (EIR) and approval for modifications at the Alon Bakersfield Refinery. Among other things, the Association of Irritated Residents (AIR) claimed that, since crude oil processing was shut down when work on the EIR began, the EIR should have considered the refinery’s inactive condition as the “baseline,” treating impacts of resuming typical operation as impacts of the new project. Rejecting AIR’s argument, the court held that, since refinery operations fluctuated over time, the use of data from operations in a representative prior year to identify the baseline level of activity was appropriate under the California Environmental Quality Act (CEQA). Continue Reading ›
For DoD Acquisitions, Conference Report For FY 2018 NDAA Includes Enhanced Debriefing Rights and Pilot Program For Protester Payment of Government Costs For Denied GAO Bid Protests
Today, our colleagues Dick Oliver and David Dixon published their Client Alert titled Changes for Bid Protests in FY 2018 NDAA. On November 8, the U.S. Senate and House Armed Services Committees announced that they had reached an agreement to reconcile the different versions of the National Defense Authorization Act for Fiscal Year 2018 (FY 2018 NDAA) passed by the Senate and House earlier in the year.
Meaning of “In Connection With” and “Pursuant To” Under Oil Pollution Act A Question of First Impression in Fifth Circuit
On November 7, in U.S. v. American Commercial Lines, LLC, the U.S. Court of Appeals for the Fifth Circuit affirmed the District Court’s ruling that American Commercial Lines (ACL), the owner of a tug boat whose contracted crew’s actions caused a massive oil spill in the Mississippi River, cannot rely on the Oil Pollution Act’s (OPA) third party defenses to avoid paying the U.S. Government another $20 million to reimburse the government’s response costs, and otherwise it was not entitled to limited liability because of the nature of the conduct of the operator’s employees.
There is no dispute that the July 23, 2008 spill was caused by [DRD Towing Company’s (DRD)] wrongful conduct and regulatory violations, committed in the course of carrying out its contractual obligation to transport ACL’s fuel-filled barge. Accordingly, the spill was caused by the gross negligence, willful misconduct or regulatory violations of ‘a person acting pursuant to a contractual relationship with’ ACL, and ACL is therefore not entitled to limited liability.
Ninth Circuit Issues Guidance on RCRA Section 1006 Anti-Duplication Provision
On November 2, the U.S. Court of Appeals for the Ninth Circuit issued its long-awaited ruling in Ecological Rights Foundation v. Pacific Gas & Electric Company, which clarifies the Resource Conservation and Recovery Act’s (RCRA) Section 1006 anti-duplication provision that can play a key role in RCRA enforcement actions. The Ninth Circuit reversed the District Court’s ruling and remanded the matter to enable the District Court
“to consider EcoRights’ arguments with respect to the stormwater pathway that the relevant wastes are “solid wastes” and that PG&E’s actions present an imminent and substantial endangerment to health or the environment under RCRA.”