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Take Caution Before Transferring Portions of a Project (Especially to Affiliates)
Because the challenges facing a developer multiply when it no longer owns an entire project, careful planning and documentation are required in advance of any transfer. While this article addresses issues that arise when different portions of a project are owned by different parties (transfers in general), the main focus is on the issues that arise when different portions of the project are owned by affiliated parties (transfers to affiliates), primarily because those issues are easy to overlook.
Drug & Device News
The latest happenings for your review.
Cooperatives & Condominiums
In-depth analysis of recent rulings.
Index
Everything contained in this issue, in an easy-to-read format.
A Quagmire of Obligations
Pending in bankruptcy court in Corpus Christi, TX, is <i>In re ASARCO, LLC, et al.</i>, the largest environmental bankruptcy case ever filed. This article explores the ramificatinos of the case.
In the Marketplace
Highlights of the latest equipment leasing news from around the country.
Recovering the Value of Preferential Transfers of Goods or Equipment: Seller Beware
Imagine you are an equipment manufacturer. You sell $45 million in goods to a reliable customer on credit, shipping them to a third-party warehouse to be held for the customer to pick up when needed. Months later, unable to pay and sliding toward bankruptcy, the customer returns the unused equipment. The next thing you know, the customer, having filed for bankruptcy, sues YOU to recover not only the $45 million value of the returned equipment, but also an additional $55 million in cash payments the customer had made.
Truck Leasing in a Down Economy: How to Prepare
The apparent downturn of the economy is currently most prevalent in the trucking sector, which saw a dramatic increase in repossessions and liquidations in the past year. This article discusses strategic options for lessors.
Business Incentives in the Economic Stimulus Act of 2008: A Welcome Boost for the Leasing Industry
This article explains the terms of the Economic Stimulus Act of 2008 that impact the leasing industry, explains how the terms in the act are likely to affect leasing companies, and explains how leasing companies can benefit from them.
April issue in PDF format
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  • The 'Sophisticated Insured' Defense
    A majority of courts consider the <i>contra proferentem</i> doctrine to be a pillar of insurance law. The doctrine requires ambiguous terms in an insurance policy to be construed against the insurer and in favor of coverage for the insured. A prominent rationale behind the doctrine is that insurance policies are usually standard-form contracts drafted entirely by insurers.
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  • Abandoned and Unused Cables: A Hidden Liability Under the 2002 National Electric Code
    In an effort to minimize the release of toxic gasses from cables in the event of fire, the 2002 version of the National Electric Code ("NEC"), promulgated by the National Fire Protection Association, sets forth new guidelines requiring that abandoned cables must be removed from buildings unless they are located in metal raceways or tagged "For Future Use." While the NEC is not, in itself, binding law, most jurisdictions in the United States adopt the NEC by reference in their state or local building and fire codes. Thus, noncompliance with the recent NEC guidelines will likely mean that a building is in violation of a building or fire code. If so, the building owner may also be in breach of agreements with tenants and lenders and may be jeopardizing its fire insurance coverage. Even in jurisdictions where the 2002 NEC has not been adopted, it may be argued that the guidelines represent the standard of reasonable care and could result in tort liability for the landlord if toxic gasses from abandoned cables are emitted in a fire. With these potential liabilities in mind, this article discusses: 1) how to address the abandoned wires and cables currently located within the risers, ceilings and other areas of properties, and 2) additional considerations in the placement and removal of telecommunications cables going forward.
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