Recently, my colleagues Micah Miller, Melinda Barker, 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.
The Nevada State Contractors Board’s annual Contractor Training Day is scheduled for August 23 from 8:30 a.m. – 12:00 p.m. at 5400 Mill Street, Reno, NV 89502 and September 13 at the Clark County Building Department in Las Vegas. The free half-day event will cover (1) Liens and Contract Law and (2) Issues in Labor and Employment Law. For more information, contact Scott Smith at (702) 486-1165 or email@example.com.
Photo: Steve S., Studying, Taken November 9, 2006 – Creative Commons
The state and federal appellate courts have issued a surprising number of significant rulings in a variety of environmental and administrative law controversies in late July and early August:
- On August 8, the U.S. Court of Appeals for the Second Circuit issued a very long (127 pages) ruling affirming in all respects the (400-page) opinion of the U.S. District Court for the Southern District of New York which found that a massive judgment obtained by the Ecuadorian plaintiffs against Chevron for alleged pollution in the Ecuadoran rain forest by Texaco many years ago was, in fact, procured by fraud. The case is Chevron Corporation v. Donzinger, et. al. The District Court enjoined Donzinger and his associates from seeking to enforce in the United States an $8.6 billion judgment; imposed a constructive trust for Chevron’s benefit on any property that Donzinger and his associates received that is traceable to this judgment or its enforcement; and held that the conduct of this litigation against Chevron violated the Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. §§ 1961-1968 (RICO) and also warranted relief under the common law of New York. The defendants-appellants argued that Chevron had no Article III standing to pursue this action, and that to uphold the judgment for Chevron would violate principles of international comity and judicial estoppel. This result confirms again the inestimable value of an independent, fearless judiciary, which is so sadly wanting in many areas of the world.
Today, we published our alert Supreme Court’s Environmental and Administrative Law Decisions in 2015-2016 Term. In the Advisory, we provide a brief report on some of the significant U.S. Supreme Court actions from January through June 2016 related to environmental and administrative law.
*Pillsbury summer clerk Brittney Sandler made significant contributions to this article. Sandler is currently enrolled at Georgetown University Law Center where she serves as editor for the Georgetown Law Journal and as a legal research and writing fellow.
Photo: Phil Roeder, Supreme Court of the United States, Taken March 15, 2011 – Creative Commons
Today, the Financial Crimes Enforcement Network (FinCEN) announced, effective August 28, 2016 and continuing for 180 days, it is expanding its earlier Geographic Targeting Orders (GTO) requiring information about the natural persons behind shell companies used to purchase high-end residential real estate for “all cash.” FinCEN has been collecting this data on Manhattan and Miami-Dade County, Florida since January and believes it is “on the right track” in its anti-money laundering (AML) efforts and investigation of possible money laundering using real estate deals. It will collect this information in California for San Francisco, San Mateo and Santa Clara counties; Los Angeles County; and San Diego County. It will expand to all boroughs of New York City and to Broward and Palm Beach counties in Florida. Bexar county in Texas, that includes San Antonio is also included. Monetary thresholds for each area identified are provided in FinCEN’s announcement. Title insurance companies are required to comply with the GTO and provide the information.
Photo: Images by John ‘K’, Blue and Gold, Taken April 1, 2013 – Creative Commons
My colleagues Anthony Raven, Olivia Matsushita and Andrew White recently published an interesting advisory on the future of carbon dioxide (CO2) injection enhanced oil recovery (EOR). The Future of Carbon Dioxide Injection EOR in the United States is the first advisory in a periodic series exploring legal issues relating to CO2 EOR and serves as an introduction to the EOR process. Their next advisory will focus on issues relating to the regulatory regime for CO2 transportation.
Photo: Zappys Technology Solutions, CO2, Taken September 21, 2013 – Creative Commons
Pillsbury’s Policyholder Pulse Law blog recently posted an interesting blog, Use Contractor’s Pollution Liability Insurance to Clean Up Potential Gaps in Your CGL Coverage by Ashley E. Cowgill, on the importance of contractors having the right liability coverage in place in the event that a flash flood or other natural disaster causes damage that is classified by the insurer as a pollution event.
Photo: Erich Ferdinand, Deluge, Taken Nov. 29, 2012 – Creative Commons
Public development and infrastructure projects are on the rise in California. This is a good thing for the economy. But it also means that private property will often be needed to complete these projects. Public agencies may acquire private property upon payment of just compensation, without the owner’s consent, through an eminent domain action. Property near highways, railroads, public utilities, government buildings and other public facilities are frequent acquisition targets for expansion of these facilities, as are those properties in the path of development of growing cities. But virtually any property may be subject to public acquisition, either through condemnation of the entire property or of easements in the property.
Recently, my colleagues Brian Blum and Jim Chudy published an interesting piece titled Five Things about the IRS’s Proposed Regulations on the Spinoff Device and Active Business Tests discussing the IRS’ recent proposal of long-anticipated regulations tightening the “device” and “active trade or business” tests that are necessary for a corporation to distribute a subsidiary in a tax-free spinoff under Section 355 of the Internal Revenue Code. The proposed rules are in response to widely publicized spinoffs in which tiny businesses were matched with large minority equity interests or pools of
Anyone doing international construction work knows that the U.S. Securities and Exchange Commission’s (SEC) has been continually increasing its Foreign Corrupt Practices Act (FCPA) focus on U.S. companies doing business overseas. Here’s the latest: Recently my colleagues William Sullivan, Reza Zarghamee and Fabio Leonardi wrote an interesting piece, New SEC Payment Disclosure Rules Raise FCPA Concerns for Energy Companies, on the SEC June 27, 2016 announcement that it had adopted final rules requiring public disclosure, among other things, of certain payments made to foreign governments by resource extraction issuers in connection with the commercial development of oil, gas and mineral rights. These disclosure requirements are expected to raise FCPA enforcement concerns for energy companies, as both the SEC and the U.S. Department of Justice will scrutinize this information for cause to open parallel investigations and potentially pursue issuers for alleged FCPA violations.
Photo: Sean MacEntee, energy, Taken May 19, 2010 – Creative Commons