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Summarizing Changes to NEPA in the Fiscal Responsibility Act (P.L. 118-5)

September 05, 2023 — Anthony B. Cavender & Marcus Manca - Gravel2Gavel Construction & Real Estate Law Blog
The National Environmental Policy Act (NEPA) was signed into law on January 1, 1970, and it has rarely been amended or revised since then. NEPA is basically a procedural statute which requires Federal permitting authorities, before a major federal project is approved, to carefully consider the significant environmental consequences of the proposed federal action. NEPA has been employed to conduct a probing review of wide variety of federal projects and actions, and the President’s Council on Environmental Quality (CEQ) has promulgated a comprehensive set of rules and guidance documents that must be followed or consulted. (See 40 CFR Section 1500 et seq.) The first set of NEPA rules was issued in 1978, and very little was done to bring the rules up to date until 2020. The first phase of this review has been completed, and a second and final phase will soon be underway. The NEPA review process includes the use of “categorical exclusions,” environmental assessments and environmental impact statements to measure the environmental impact of a proposed project. Over time, the rules and their implementation and judicial interpretation have become ever more complex, and an enormous body of NEPA case law has resulted. The recent Congressional debt limit deliberations provided an opportunity to revise some of these procedures, and the Fiscal Responsibility Act, signed into law on June 3, 2023, included at Title III, a section devoted to “Permitting Reform.” Reprinted courtesy of Anthony B. Cavender, Pillsbury and Marcus Manca, Pillsbury Read the full story...
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com

Real Estate & Construction News Roundup (06/06/23) – Housing Woes, EV Plants and the Debate over Public Financing

July 10, 2023 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, we look at the increasing difficulty of purchasing a home, potential international fallout from a new trade deal a renewed commitment by one American automaker to electric vehicles, and more! It’s becoming increasingly more difficult for house hunters to find homes, specifically in certain major cities. (Khristopher J. Brooks, CBS) Due to years of overuse and a decades-long drought, Arizona has halted new housing construction of parts of metro Phoenix. (AP via NBC) After several claims by the FTC over privacy concerns regarding its voice assistant Alexa and doorbell camera Ring, Amazon has agreed to pay over $30 million in fines. (Ayana Archie, NPR) Read the full story...
Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

Montana Trial Court Holds That Youths Have Standing to Bring Constitutional Claims Against State Government For Alleged Climate Change-Related Harms

September 18, 2023 — Paul A. Briganti & Julia Castanzo - White and Williams LLP
On August 14, 2023, in a “landmark” ruling, a Montana state court held that youth plaintiffs had standing to assert constitutional claims against the State of Montana, its governor and state agencies for “ignoring” the impact of greenhouse gas (GHG) emissions on climate change. Held v. State of Montana, Cause No. CDV-020-307 (1st Judicial Dist. Ct., Lewis & Clark Cty., Mt.). Agreeing with the plaintiffs, the court concluded that a limitation in the Montana Environmental Policy Act (MEPA), which prohibited the state from considering climate impacts when issuing permits for energy projects, violated the plaintiffs’ right under the state constitution to a “clean and healthful environment.” MEPA, enacted in 1971, states that its purposes include “provid[ing] for the adequate review of state actions in order to ensure that . . . environmental attributes are fully considered by the legislature in enacting laws to fulfill constitutional obligations . . . .” In 2011, the legislature amended the statute to curtail the scope of environmental reviews. Under the so-called MEPA limitation, Montana agencies cannot consider “an evaluation of greenhouse gas emissions and corresponding impacts to the climate in the state or beyond the state’s borders.” Mont. Code Ann. § 75-1-201(2)(a). In 2023, the legislature added a provision that eliminated equitable remedies (i.e., the ability to “vacate, void, or delay a lease, permit, license, certificate, authorization, or other entitlement or authority”) for litigants who “claim that [an] environmental review is inadequate based in whole or in part upon greenhouse gas emissions and impacts to the climate in Montana or beyond Montana’s borders . . . .” Id. § 75-1-201(6)(a)(ii). Reprinted courtesy of Paul A. Briganti, White and Williams LLP and Julia Castanzo, White and Williams LLP Mr. Briganti may be contacted at brigantip@whiteandwilliams.com Ms. Castanzo may be contacted at castanzoj@whiteandwilliams.com Read the full story...

Nevada’s Changing Liability Insurance Landscape—State Insurance Regulator Issues Emergency Regulation and Guidance Addressing Controversial “Defense-Within-Limits” Legislation

August 28, 2023 — Geoffrey B. Fehling & Andrew S. Koelz - Hunton Insurance Recovery Blog
We recently posted about Nevada becoming the first state to prohibit defense-within-limits provisions in liability insurance policies. Defense-within-limits provisions—resulting in what is called “eroding” or “wasting” policies—reduce the policy’s applicable limit of insurance by amounts the insurer pays to defend the policyholder against a claim or suit. In response to uncertainty and industry concern about the potential effects the new law may have on the state’s insurance marketplace, Nevada’s Division of Insurance issued an Emergency Regulation and Guidance to Insurers on the new law to minimize disruption to the marketplace. After noting that the new law “has the potential to eliminate or greatly reduce the availability of certain policies of liability insurance and significantly increase their costs, which will affect all types of Nevada businesses, non-profit entities, and state and local governments,” Nevada’s Division of Insurance addressed three issues relating to the new law in the Emergency Regulation:

The meaning of the term “policy of liability insurance,” as used in the new law.
The insurers to which the new law does not apply.
How defense coverage is required to be made available.

Reprinted courtesy of Geoffrey B. Fehling, Hunton Andrews Kurth and Andrew S. Koelz, Hunton Andrews Kurth Mr. Fehling may be contacted at gfehling@HuntonAK.com Mr. Koelz may be contacted at akoelz@HuntonAK.com Read the full story...

Someone Who Hires an Independent Contractor May Still Be Liable, But Not in This Case

April 18, 2023 — Katherine Dempsey - The Subrogation Strategist
In Allstate Veh. & Prop. Ins. Co. v. Glitz Constr. Corp., 2023 N.Y. App. Div. LEXIS 1180, 2023 NY Slip Op 01171, the Supreme Court of New York, Appellate Division, Second Department (Appellate Court), considered whether a contractor could be found liable for its subcontractor’s alleged negligence in causing injury to a homeowner’s property. The homeowner’s insurer, as subrogee of the homeowner, sought to recover damages from the contractor despite an allegation that the subcontractor – an independent contractor – caused the injury to the homeowner’s property. Finding that there was no evidence that any of the exceptions to the non-liability rule related to hiring independent contractors applied, the Appellate Court affirmed the lower court’s decision granting judgment in favor of the contractor. In this case, the homeowner hired the contractor (defendant) to convert her garage area into a bedroom and an office. The defendant later hired a subcontractor to perform the electrical rough-in work. At trial, the homeowner’s insurer (plaintiff) presented evidence that the subcontractor, who damaged an existing wire with a drill bit, caused an electrical failure that resulted in a fire. The defendant argued that it could not be held liable for the subcontractor’s alleged negligence because the subcontractor was an independent contractor and, on appeal, the Appellate Court agreed. Read the full story...
Reprinted courtesy of Katherine Dempsey, White and Williams LLP
Ms. Dempsey may be contacted at dempseyk@whiteandwilliams.com

How Retro-Commissioning Can Extend the Life of a Building—and the Planet

July 10, 2023 — Matthew Zweibruck - Construction Executive
Sustainability initiatives in the built environment need not be limited to new construction or other large expenditures. Aging facilities have the potential to extend their years of service while also combating greenhouse gas emissions. But what is the best course of action? From building design initiatives such as net zero and electrification to renewables and green building certifications, it can be a complicated and overwhelming field to navigate. Building owners and property managers may question if they are pursuing the correct programs to minimize their organization’s negative impacts on the environment. With all the initiatives, buzzwords and fancy awards surrounding these initiatives, there are energy-efficiency strategies available to buildings that cut through this noise—strategies that are cost effective, quick to implement, widely abundant and result in an immediate reduction in a building’s impact on climate change. Reprinted courtesy of Matthew Zweibruck, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...

Meet D1's Neutrals Series: KENNETH FLOREY

June 12, 2023 — Marissa L. Downs - The Dispute Resolver
Company: Robbins Schwartz Office Location: Chicago, IL Email: kflorey@robbins-schwartz.com Website: https://www.rsnlt.com/attorneys/kenneth-m-florey/ Law School: DePaul University (JD 1992) Types of ADR services offered: Mediation, Arbitration, Project Neutral Affiliated ADR organizations: AAA Panel of Arbitrators and Mediators Geographic area served: Nationwide Q: Describe the path you took to becoming an ADR neutral. A: I’ve been involved in construction litigation my entire career as an attorney, going on 30 years. After being an advocate for all sides to these disputes (owners, contractors, and design professionals), I recognize the immense value of ADR to clients and decided to start shifting my litigation experience and skills to the neutral realm as an arbitrator and mediator. Read the full story...
Reprinted courtesy of Marissa L. Downs, Laurie & Brennan, LLP
Ms. Downs may be contacted at mdowns@lauriebrennan.com

Traub Lieberman Partner Eric D. Suben Obtains Federal Second Circuit Affirmance of Summary Judgment in Insurer’s Favor

April 10, 2023 — Eric D. Suben - Traub Lieberman
In the underlying action, a property owner hosting a motorcycle rally was sued after a motorcycle collided with an auto near the entrance to the premises, injuring the cyclists. The cyclists sued the property owner, among others, alleging failure to supervising traffic on the adjoining roadway. The property owner tendered the claim under its CGL policy, which was endorsed with an “absolute auto exclusion,” precluding coverage for claims “arising out of or resulting from the ownership, maintenance, use or entrustment to others of any…auto.” The CGL insurer disclaimed coverage based on the endorsement. In the ensuing coverage litigation, Traub Lieberman represented the insurer, and moved for summary judgment arguing that the “absolute auto exclusion” was dispositive of coverage on the facts alleged, citing case law from New York state courts enforcing similar exclusions to preclude coverage for multi-vehicle accidents. The insured argued in opposition that the outcome should be controlled by Essex Insurance Company v. Grande Stone Quarry, LLC, 82 A.D.3d 1326, 918 N.Y.S.2d 238 (3rd Dep’t 2011), in which the court declined to apply such exclusion in the case of a single-vehicle accident caused by a dangerous condition of the insured’s premises. The federal district judge disagreed with the insured’s argument in this regard, granting Traub Lieberman’s motion for summary judgment in favor of the insurer. Read the full story...
Reprinted courtesy of Eric D. Suben, Traub Lieberman
Mr. Suben may be contacted at esuben@tlsslaw.com

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