Minnesota Environmental Response and Liability Act
December 20, 2009 | Barna, Guzy & Steffen, Ltd.Minnesota Environmental Response and Liability Act Suppose you were an owner of real estate in the 1960’s. Suppose also that you leased the real estate you owned to an oil company in 1961. The oil company placed fuel tanks on the real estate. In 1962 the oil company spilled fuel on your real estate. It slowly seeped into the soil and eventually contaminated the ground water as well as the soil. In 1988 the city where the land is located condemned the property. Now fast forward to today. The city sues you for the cost of the clean up based on current real estate law. Can you be held liable to clean up your real estate today when the fuel spill is discovered? The answer, believe it or not, is quite possibly yes. Many real estate owners in Minnesota are facing these liability issues today as a result of the Minnesota Environmental Response and Liability Act (“MERLA”). MERLA is what is called a “superfund” law. It was enacted primarily to identify and clean up abandoned and existing sites contaminated by hazardous substances. The key features of MERLA are that it: 1. Imposes joint and several liability on responsible persons; 2. Imposes strict liability, that is, liability without regard to fault or negligence, on…
Read MoreBuilding Mold – A "Growing" Problem
December 20, 2009 | Joan M. QuadeMold has been around since the beginning of time, but never has there been such a frenzy of media coverage, claims, litigation and concern about mold and its affects on our buildings and on our health. Even though millions of types of mold have been around forever, the types we are currently seeing proliferate in our buildings, are different in that they are destructive fungi. The molds, in some cases, are actually eating away at the structure of the building and can compromise the integrity of a building in a very short time. Along with the concerns of property damage, there is also concern for personal injury since many of these molds, even if not specifically “toxic mold” or “black mold” do have health consequences associated with their presence. No one has set specific standards on mold exposure in relationship to health, however, it appears that everyone agrees that certain kinds of mold exposure can affect ones health and present special problems for some children, the elderly and those who have compromised immune systems. There are no current comprehensive studies to lead one through the connections between mold and health and only time will tell how these issues are resolved. After a problem is discovered, there are important decisions to be made . ….
Read MoreBankruptcy Overview and the Unexpired Lease
December 20, 2009 | Joan M. QuadeMany clients over the years have had questions regarding bankruptcy law and the consequences of a tenant in possession of commercial space, filing Bankruptcy. The bankruptcy law is complex and comprehensive. The following is meant as a simplified overview and, of course, you should consult with an attorney on specific cases. Bankruptcy is covered by Federal Law. The purpose of the Bankruptcy Act is to convert the estate of the debtor into cash and distribute it fairly among creditors. Once a debtor files Bankruptcy, there is an automatic “Stay”. In regards to collection activity, this means it is a violation of the Stay for any creditor to do anything to attempt to collect a debt. It stops all collection activity including collection letters being sent by the creditors. Chapter 7 covers liquidation. See 11 U.S.C.S. 701 et seq. This is where a debtor is unwilling or unable to repay their obligations, and involves the debtor surrendering to a trustee all assets that are not specifically exempted by the bankruptcy laws for liquidation into cash. See Re Ross, 95 B.R. 509 (Ohio 1988). The estate is dismantled, converted to cash, and distributed equitably among the creditors. A trustee in a Chapter 7 case may be either appointed by a United States Trustee or elected…
Read More