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Illinois Governor’s Executive Order prohibited sale of food or beverages for on-premises consumption held to partially excuse restaurant tenant’s rent payment obligations. In “Court Holds COVID-19 Executive Order Triggers Lease’s Force Majeure Clause, Excusing Some Rent Obligations,” colleagues David L. MillerPatrick J. PotterJessica H. Lee, and Katherine Sauter examine the order in the sixth article in a series of alerts on insolvency topics affecting real estate.

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GI-623690468-contactless-technology-300x200On May 1, Texas began Phase I of its economic reopening, permitting certain businesses to begin operating again. Many states have since followed. As state governors look to continue to reopen with additional safety precautions in place, several (including California, Kansas, Texas, Ohio and Delaware) have implemented rules that require the use of face coverings in public places when social distancing is not an option, which includes work places. COVID-19-related orders have impacted construction projects statewide, though many states are reopening and construction projects are getting underway again, if their progress was even affected in the first place.

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In this blog post, colleagues, Joel M. Simon, Matthew Oresman, Kenneth Suh, Russell DaSilva, and Gloria H. Kim provide a simplified decision tree to assist you in making a selection that is right for your business. The flowchart presented here highlights certain differences between the facilities (however, not all requirements for each facility are addressed).

 

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The pandemic is expected to lead to a significant and sustained increase in remote working. The shift to remote working will have major implications for end user computing solutions and services regardless of industry. In “Impact of Remote Working on End User Computing Solutions and Services,” colleagues Jeffrey D. Hutchings and Craig A. de Ridder discuss key considerations that CIOs need to consider for addressing this shift in the workplace and update their outsourcing agreements for end user computing services.

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Here’s a report on several new decisions made over the past few days.

U.S. SUPREME COURT

U.S. Army Corps of Engineers v. Northern Plains Resources Council
On July 8, 2020, the Court has issued a partial stay of the decision of the U.S. District Court for Montana, which had held that the nationwide use by the Corps of Engineers of its Nationwide Permit 12 to permit oil and gas pipelines must be vacated because the Corps, when it reissued these permits in 2012, failed to follow the requirements of the Endangered Species Act. The breadth of this ruling seems to have surprised and alarmed many past and perspective permittees of the Corps. The stay will not apply to the ongoing Ninth Circuit litigation.

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June 2020 may forever be known as the month that international arbitration invaded the U.S. Supreme Court docket. In “Important International Arbitration Issues Fill Supreme Court Docket“, colleagues Richard Deutsch discuss how these rulings will likely impact critical strategic decisions early in international arbitrations.

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Both the House and Senate passed legislation by unanimous consent to extend the deadline for applications for Paycheck Protection Program loans until August 8. In Congress Approves Extension of PPP, colleagues Matthew OresmanLori Panosyan, and Jenny Y. Liu discuss the extended deadline to apply for Paycheck Protection Program (PPP) loans.

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As COVID-19 reverberates through the real estate and construction industries, impacted companies should revisit their employee compensation programs to preserve cash and drive performance while maintaining legal compliance. This is particularly true for companies normally dependent on high rents in cities, where commercial tenants are trading brick-and-mortar office space for work-from-home arrangements, and freeing up employees—unshackled by any commuting concerns—to relocate in pursuit of lower housing costs.

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Several interesting decisions have recently been made by federal and state courts.

FEDERAL APPELLATE COURTS

The U.S. Seventh Circuit Court of Appeals – ARCO Shifts from State to Federal and No Vigor for VIM
On June 18, 2020, the court decided the case of Baker, et al. v. ARCO, holding that the revised federal removal statutes authorize the removal to federal court of a state-filed complaint against several defendants by the former residents of an Indiana housing complex who contended that the defendants were responsible for the industrial pollution attributed to the operations of a now-closed industrial plant. The housing complex was constructed at the site of the former U.S. Smelter and Lead Refinery. During the Second World War, the plant produced products for the use of the government war effort, thus triggering the applicability of the federal removal statutes.

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This November, California voters will decide whether commercial and industrial properties will lose their Proposition 13 protection against property tax reassessment. In “The Split-Roll Initiative is Posted to Rock California’s Property Tax System“, colleagues , and  explain.