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Check out my latest blog for Pillsbury’s Policyholder Pulse titled A Subcontractor’s Defective Work Is an Occurrence: Weedo Wobbles … and Falls Down. It discusses a recent ruling in New Jersey,  Cypress Point Condominium Assoc., Inc. v. Adria Towers, L.L.C., on the issue of whether damage caused by a subcontractor’s faulty workmanship constitutes “property damage” and an “occurrence” under a property developer’s commercial general liability insurance policy.

Additional Source: Weedo v. Stone-E-Brick, Inc.

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Two Court of Appeals, one in the District of Columbia and the other in Texas, issued opinions regarding the federal Highway Beautification Act, 23 U.S.C. § 131 (HBA) and its state counterpart, the Texas Highway Beautification Act, respectively. The first decision illustrates how the courts will apply the principles of administrative law in a wide variety of cases. The plaintiffs had to demonstrate they had standing to prosecute their claims, and if so, whether the Department of Transportation’s (DOT) interpretation of the HBA was reasonable. In addition, the decision gives the agencies the elbow room to make room for emerging technologies.

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The Equal Access to Justice Act (EAJA) directs a court to award fees and other expenses to prevailing party in a civil action against the United States unless the government’s position was substantially justified or special circumstances make an award unjust. The EAJA has been used to recover attorney’s fees from the United States in connection with challenges to federal administrative actions. In the case of SecurityPoint Holdings, Inc. v. TSA, decided on September 2, 2016, the U.S. Court of Appeals for the D.C. Circuit held that SecurityPoint was entitled to substantial attorney’s fees (in the amount of $86,714.78) under the EAJA when its successful litigation against the TSA was a remand to the agency that required some corrective action. In so ruling, the Court of Appeals overruled Waterman Steamship Corp. v. Maritime Subsidy Board, a decision that had the effect of making SecurityPoint ineligible for the award of attorney’s fees, and may expand the right to recover these fees in the future. Continue Reading ›

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Our colleagues, Kimberly Higgins, Julia Judish, Selena Brady, Rebecca Carr Rizzo, John Jensen and Dick Oliver, today published their alert titled Final Rules and Guidance Issued on “Blacklisting” Executive Order, Controversial Mandate Requires Disclosure of Labor and Employment Violations as Part of the Federal Contracting Process discussing the Federal Acquisition Regulatory Council’s final rules and the Department of Labor’s published final guidance implementing President Obama’s 2014 “Fair Pay and Safe Workplaces” Executive Order 13673.

 

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Our colleagues Dick Oliver, Selena Brady and Travis Mullaney, in SBA To Begin Accepting Online Applications for Small Business Mentor-Protégé Program, encourage everyone to check out the Small Business Administration’s (SBA) new government-wide mentor-protégé  program for all small businesses, covering Historically Underutilized Business Zone (HUBZone) businesses, Women-Owned Small Businesses (WOSB), Service-Disabled Veteran-Owned small  businesses (SDVOSB), and other small businesses generally. The new program expands mentor-protégé access to a wider community of federal contractors than the pre-existing SBA 8(a) Business Development program. The SBA will start accepting applications for the new Small Business Mentor-Protégé Program via the online portal on October 1, 2016.

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In the case of National Resources Defense Council , et al. , v. Illinois Power Resources, LLC and Illinois Power Resources Generating, LLC, decided August 23, 2016, the United States District Court for the Central of District of Illinois held that the defendants, who operate a coal-fired power plant in Bartonville, Illinois, failed to establish that they were entitled to various regulatory and statutory defenses in this Clean Air Act (CAA) citizen suit. The District Court found that the plaintiff environmental organizations had standing to file this lawsuit, observing that even an “identifiable trifle” can establish an injury-in fact.

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Recently, my colleagues Jennifer Jordan McCall, Kim Schoknecht and Elizabeth Fry published an alert titled Proposed Section 2704 Regulations that discusses proposed regulations that, if adopted, would affect the valuation of family-owned businesses interests transferred among family members by eliminating certain discounts currently recognized under the law. The U.S. Treasury Department released the proposed regulations on August 2, 2016. They will be subject to public comment for the next 90 days and a public hearing will be held on December 1, 2016.

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On August 17, 2016, the Fourth District Court of Appeals sitting in San Antonio held, in a 2 to 1 decision, that a City of Plastic bagsLaredo ordinance prohibiting the distribution of “single use” plastic bags at check-out counters in order to reduce litter was preempted by state law, namely, Section 361.0961 of the Texas Solid Waste Disposal Act (SWDA). The case is Laredo Merchants Association v. City of Laredo, and it could be important for many Texas cities coping with solid waste management issues.

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Lockheed Martin Corporation, one of the largest defense contractors in the United States, operated three Californialockheed-300x200 facilities that manufactured solid-propellant rockets for the United States Department of Defense pursuant to contracts subject to the Federal Acquisition Regulations. Substantial quantities of hazardous substances were released by the facilities over the years which resulted in extensive environmental contamination, especially groundwater pollution. In 2008, Lockheed filed a CERCLA Section 107 cost recovery lawsuit against the United States, seeking the recovery of its past and future costs to remediate these sites. The lawsuit was filed several years after the company began remediation activities at these sites. Both Lockheed and the United States have conceded that they are potentially responsible parties at these sites. The United States in turn, filed a CERCLA contribution action against Lockheed, and this long and costly litigation resulted, which the U.S. Court of Appeals for the DC Circuit may have brought to an end. The case is Lockheed Martin Corporation v. U.S., decided August 19, 2016. Continue Reading ›

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In Third Circuit defends challenge to its authority to rule in pipeline expansion project, I was provided with an opportunity to make the point that the states and the federal government are equal sovereigns under the Constitution, which often requires some careful balancing of interests.