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The U.S. Court of Appeals for the Sixth Circuit, in In re: United States Department of Defense and United States Environmental Protection Agency Final Rule:  Clean Water Rule: Definition of “Waters of the United States,” 80 Fed. Reg. 37,050 (June 29, 2015), in a split opinion, confirmed that it has jurisdiction under the Clean Water Act to hear challenges to the new rule promulgated by the EPA and the U.S. Army Corps of Engineers re-defining  the regulatory definition of “Waters of the United States.” Recall that the Sixth Circuit earlier issued a nationwide stay of the implementation of the new rule, pending its determination that it has jurisdiction to hear challenges to this new rule. The regulatory definition of “Waters of the United States” is fundamental to the regulatory operation of  the CWA and those required to obtain a CWA permit will be watching the Sixth Circuit carefully.

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Subcontractor default insurance (SDI) was created more than twenty years ago. Despite its relatively recent vintage, SDI is now offered by multiple insurers and is quickly replacing traditional subcontractor payment and performance bonds as a go-to option on large-scale construction projects. SDI has many benefits that surety bonds don’t. We’ll be going into this in substantial detail at our Fourth Annual Subcontractor Default Insurance Forum that Pillsbury co-presents, along with our friends at Willis Towers Watson, in Scottsdale in May.

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On January 29, 2016, the Texas Supreme Court, in Railroad Commission of Texas v. Gulf Energy Exploration Corporation, unanimously reversed a decision of the Court of Appeals for the Thirteenth District (Corpus Christi) which had sustained the liability of the Texas Railroad texasflagCommission for the erroneous plugging of an abandoned offshore well, and remanded the matter for a new trial. Under Chapter 89 of the Texas Natural Resources Code, one of the Commission’s responsibilities is to protect Texas’ land and water from pollution by providing additional means to plug abandoned wells. Chapter 89 also provides a “liability defense” to those engaged in plugging operations in good faith.
The Texas Supreme Court ruled that the Commission was entitled to have the jury assess its good faith defense. Interestingly, the Texas Supreme Court also held that the “good faith” defense will also apply to Gulf Energy Exploration Corporation’s breach of contract claim against the Commission, and that the defense is not limited to tort actions.

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The Freedom of Information Act (FOIA), first enacted more than 40 years ago, governs the release of information to the public of data generated by and submitted to the federal government. A recent decision by a U.S. District Court in Washington, DC, Competitive Enterprise Institute v. Office of Science and Technology Policy, describes one of the most important exceptions that serves to restrict the release if internal government documents, the “deliberative process privilege.”The District Court discussed this exemption in connection with its review of the Information Quality Act (IQA) and statements made in a short White House video on global warming director of the OSTP appeared in a brief White House video in which the director of the Office of Science and Technology Policy (OSTP) asserted that there was a growing body of evidence linking the weather phenomenon known as the “Polar Vortex” to global warming. The District Court held that 47 pages of internal communications (mostly drafts) that preceded the issuance of a three page letter by the OSTP responding to the Competitive Enterprise Institute’s (CEI) concerns about the video were covered by this FOIA deliberative process privilege exemption.

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On February 8, 2016, two significant decisions regarding the Federal Tort Claims Act (FTCA) were issued by the federal courts in the wake of the Supreme Court’s guidance in U.S. v. Kwai Fun Wong,135 S. Ct. 1625, 1638 (2015), that “the FTCA’s time bars are nonjurisdictional and subject to equitable tolling.”  These two recent decisions, Garling, et al., v. U.S. and Trinity Marine Products, Inc. v. United States, leave open the question regarding when equitable tolling of an FTCA claim will be available and, moreover, it may depend upon the jurisdiction in which the claims are filed.

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Pillsbury would like to congratulate the winners of the “Built by Women” contest in DC, which highlights women’s contributions to the city of Washington D.C in the areas of architecture, engineering, womeninconstructionconstruction, and real estate. Categories include Civic, Commercial, Cultural, Institutional, Landscape, Mixed-Use, Residential, Transportation, Urban Design.  The Built By Women initiative was started by the Beverly Willis Architecture Foundation to celebrate the contributions of women to the built environment and to support women pursing building professions.

You can view the full list of winners on the BWAF website here.  Additionally, the National Building Museum will honor the winning sites in the historic Great Hall the weekend of March 19 and 20.  Congratulations to all of the winning women on your accomplishments and contributions to D.C.’s built environment.

Photo:  University Salford Press Office, Women in Construction – Creative Commons

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On February 5, 2016, the U.S. Court of Appeals for the Eleventh Circuit, in the case of Palmer Ranch Holdings, LTD, et al., v. Commissioner of Internal Revenue, issued a long and complex ruling baldeagle-1-300x200that largely affirms the Tax Court’s decision regarding a contested evaluation of a conservation easement that resulted in significant claimed deductions. Perhaps somewhat surprisingly, the Tax Court sided with Palmer Ranch on its valuation of the conservation easement and the Eleventh Circuit went onto voice concern that the valuation was lowered from $25 million to $21 million by the Tax Court.

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The Environmental Protection Agency (EPA) is required by Section 108 of the Comprehensive Environmental Response, Compensation, and liability Act of 1980, 42 U.S.C. §§ 9601–9675 (CERCLA), to establish financial assurance and responsibility rules for classes of facilities that mopare associated with the production, transportation, treatment, storage or disposal of hazardous substances. Despite the deadlines provided by the law, more than 30 years have passed without any rules or proposed rules being published by EPA.

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The Presidio Army Base in San Francisco, once the headquarters of the Sixth Army and a favorite post of many soldiers and their families, is now a National Park and a National Historic Landmark. For many presidio-300x200years, plans to renovate and protect the old post have been thoroughly discussed and vetted. On January 27, 2016, the U.S. Court of Appeals for the Ninth Circuit removed one more obstacle to the consummation of these plans by  affirming the district court’s summary judgment in favor of the Trust.

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In the case of Center for Biological Diversity, et. al v. U.S. Forest Service, the U.S. Court of Appeals for the Ninth Circuit, in an unpublished opinion released on January 12, 2016, reversed the lower court’s dismissal of a Resource Conservation and Recovery Act legs(RCRA) Citizens Suit filed against the U.S. Forest Service which alleged that the U.S. Forest Service violated the RCRA by failing to regulate the disposal of spent lead ammunition in a national forest. Reviewing the allegations in the complaint, the Court of Appeals held that the plaintiffs had established standing—their claims are “not wholly insubstantial or frivolous.” The Court of Appeals noted that the government could make the argument in the lower court that the U.S. Forest Service was not a “contributor” to the solid waste problem, something the RCRA Citizen Suit provision requires.

Photo:  ClickFlashPhotos / Nicki Varkevisser, Painty Legs – Creative Commons