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Keep Your Lease A Lease: Seventh Circuit Finds the Severability of a Contract Defeats Re-characterization
In the December 2005 issue of this publication, this author reviewed the Seventh Circuit's decision in United Air Lines, Inc. v. HSBC Bank USA, N.A., 416 F.3d 609 (7th Cir. 2005) ('United I'). In that decision, the Seventh Circuit was asked to determine whether a transaction involving land at the San Francisco airport that was denominated as a lease in the agreement would be treated as a lease for bankruptcy purposes. The Seventh Circuit held that it would look at the substance of the transaction and beyond the form and labels imposed by the parties' documentation.
Recently, the Seventh Circuit issued another opinion regarding the potential re-characterization of a lease in the United Airlines case. United Airlines, Inc. v. HSBC Bank USA, 453 F.3d 463 (7th Cir. 2006) ('United II'). Like United I, this case involves a ground lease of land at an airport and a financing transaction to build facilities for United's use, but this time in Denver. The results of United II are opposite to United I. What is the court's major distinction? Unlike United I, the ground lease and the financing transaction in United II were part of one inseverable document instead of two separate contracts. This holding presents a potentially, surprisingly simple safeguard to lessors/financing providers in the documentation of their agreements.
The DOJ's Corporate Enforcement Policy: One Year Later
The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.
Use of Deferred Prosecution Agreements In White Collar Investigations
This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.
How AI Has Affected PR
When we consider how the use of AI affects legal PR and communications, we have to look at it as an industrywide global phenomenon. A recent online conference provided an overview of the latest AI trends in public relations, and specifically, the impact of AI on communications. Here are some of the key points and takeaways from several of the speakers, who provided current best practices, tips, concerns and case studies.
New York's Latest Cybersecurity Commitment
On Aug. 9, 2023, Gov. Kathy Hochul introduced New York's inaugural comprehensive cybersecurity strategy. In sum, the plan aims to update government networks, bolster county-level digital defenses, and regulate critical infrastructure.