Gibbons Law Alert

Gibbons Law Alert

Author: Gibbons P.C.

NYSDEC Commissioner Directs Agency to Investigate PFAS Contamination in Consumer Products

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Posted in Environmental and Green Issues

On January 25, 2021

New York State Department of Environmental Conservation (NYSDEC) Commissioner, Basil Seggos, announced last week that he is directing the Department to conduct a new investigation of potential per- and polyfluoroalkyl substances (“PFAS”) contamination in consumer products. PFAS have been designated as chemicals of emerging concern by the U.S. Environmental Protection Agency (EPA). Specifically, Commissioner Seggos has directed the Department to “take a hard look at new science shared by the U.S. Environmental Protection Agency about potential PFAS contamination in consumer products, including insecticides, pesticides, and other crop protectant products packaged in fluorinated high-density polyethylene (‘HDPE’) containers.” Earlier this month, the EPA had issued a press release that stated, “the agency has determined that fluorinated HDPE containers that are used to store and transport a mosquito control pesticide product contain PFAS compounds that are leaching into the pesticide product.” The EPA press release that triggered the Commissioner’s directive announced the EPA’s investigation into companies that use fluorinated containers and companies that provide container fluorination services, in an effort to identify potential sources of contamination. The directive from Commissioner Seggos is the latest in a line of actions taken by New York to address PFAS contamination, including a statewide investigation of potential sources of PFAS and the establishment of drinking water maximum contaminant levels for two PFAS...

Lack of Plaintiff Article III Standing Proves Fatal to Eleventh Circuit in FACTA Class Action Settlement

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Posted in Class Action Defense

On January 25, 2021

In a 7-to-3 en banc decision, the Eleventh Circuit vacated a high-stakes $6.3 million class settlement on standing grounds. In James Price v. Godiva Chocolatier, Inc., et al, the court held that a named plaintiff lacked standing to bring a claim under the Fair and Accurate Credit Transactions Act (FACTA) on behalf of a proposed settlement class. The plaintiff, Dr. David Muransky, filed a class action complaint against Godiva claiming a violation of FACTA, which prohibits “merchants from printing more than the last five digits of the card number (or the card’s expiration date) on receipts offered to customers.” After visiting a Godiva retail store in Florida, the plaintiff was handed a receipt that contained the first six and the last four digits of his credit card number–a technical violation of FACTA. The plaintiff claimed that the violation was “statutory in nature” and did “not intend[] to request any recovery for personal injury.” The plaintiff further framed the class’s harm from violations as “irreparable harm as a result of the defendant’s unlawful and wrongful conduct,” and that “Plaintiff and members of the class continue to be exposed to an elevated risk of identity theft.” The putative class was so large that Godiva could have faced statutory damages, punitive damages, and costs of more than $342...

Planning Ahead: The Critical Importance of Early Agreement on the Proportional Scope of Preservation

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Posted in E-Discovery: Legal Decisions and Court Rules

On January 21, 2021

In M.A. v. Wyndham Hotels & Resorts, Inc., and H.H. v. G6 Hospitality LLC, the United States District Court for the Southern District of Ohio, Eastern Division, rejected plaintiffs’ objections to the Magistrate Judge’s decision excluding certain types of electronically stored information (ESI) from defendants’ duty to preserve. In doing so, the District Court emphasized the fact that the parties had spent a considerable amount of time addressing issues related to ESI and that plaintiffs had consented to the exclusions during a status conference with the Magistrate Judge. In adopting the Magistrate Judge’s recommendation, the District Court based its decision on “guiding principles of proportionality, default standards in other jurisdictions, and current trends in ESI discovery.” Plaintiffs filed related complaints against several hotel locations and parent companies pursuant to the Trafficking Victims Protection Reauthorization Act (TVPRA). In April 2019, plaintiffs sent letters to defendants reminding them of their duty to preserve potentially discoverable ESI. A number of discovery disputes ensued related to proposed confidentiality and ESI orders. While this decision also addresses issues related to confidentiality, the primary focus of this post is the dispute regarding defendants’ obligation to preserve certain types of ESI. In particular, plaintiffs objected to an oral decision rendered by the Magistrate Judge finding that defendants were not obligated to preserve:...

NJ’s New Economic Incentive Legislation Includes Supplement to Brownfields Program

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Posted in Development/Redevelopment

On January 14, 2021

The New Jersey Economic Recovery Act of 2020 (NJERA), recently signed into law by Governor Murphy, includes an important new tax incentive for Brownfields called the “Brownfields Redevelopment Incentive Program Act” (BRIPA),  included as Sections 9 through 19 in the act. BRIPA supplements the existing “Brownfield and Contaminated Site Remediation Act” (BCSRA), which provides funds for reimbursement of varying components of remediation costs at Brownfield sites based on certain eligibility criteria, including the Hazardous Discharge Site Remediation Fund and the Brownfield Site Reimbursement Fund. Under BRIPA, as under BCSRA, a “Brownfield site” is any commercial or industrial site that is “vacant or underutilized and on which there has been, or there is suspected to have been, a discharge of a contaminant.” BRIPA further expands the definition of Brownfield sites to include sites where there is or suspected to be contaminated building materials. BRIPA takes an approach similar to that of the New York Brownfields Cleanup Program by awarding tax credits of up to the lesser of 40 percent of remediation costs or $4 million under redevelopment agreements entered into by the state and a developer. There is a cumulative cap of $50 million that can be awarded annually under BRIPA. Projects that are eligible for tax credits under BRIPA are those that are located at...

Gibbons Environmental Law Department Congratulates Former Director Shawn LaTourette on Being Named NJDEP Acting Commissioner

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Posted in Environmental and Green Issues

On January 14, 2021

The Gibbons Environmental Law Department proudly congratulates former Director Shawn LaTourette on his being named Acting Commissioner of the New Jersey Department of Environmental Protection (NJDEP) by Governor Murphy. Shawn joined the Gibbons Environmental Law Department as an associate in 2015 where he was provided with a supportive platform on which to develop and expand his legal and environmental skills. Recognizing his significant talent, Gibbons elevated him to Director in 2018. Shortly thereafter, he was tapped to serve as Chief Counsel for the NJDEP. During his time at Gibbons, he was an integral part of the Environmental Law Department where he worked on complex environmental litigation matters under the New Jersey Spill Compensation and Control Act and the federal Comprehensive Environmental Response, Compensation, and Liability Act, as well as other significant litigation matters involving contract and common law claims between private parties. He also represented clients in cutting-edge permitting and regulatory compliance matters, and on brownfields redevelopment projects. “We are extremely proud of Shawn, and we are glad that our department was able to enhance his development as an environmental attorney such that he has been able to succeed so profoundly in public service,” said Camille V. Otero, Director and Chair of the Gibbons Environmental Law Department. “Shawn was a vital part of our Department’s...

Former Gibbons Director Shawn LaTourette Named NJDEP Acting Commissioner

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Posted in Environmental and Green Issues

On January 13, 2021

Shawn LaTourette, formerly a Director in the Environmental Department at Gibbons P.C., has been named Acting Commissioner of the New Jersey Department of Environmental Protection (NJDEP), as announced by New Jersey Governor Murphy earlier today. Mr. LaTourette previously served as NJDEP Chief Counsel. Mr. LaTourette joined Gibbons in 2015 as an associate and was promoted to Director in 2018, prior to joining the NJDEP. At Gibbons, his practice focused on environmental and closely related legal fields, in both litigation and transactional settings involving environmental conditions, land use, and development. He helped clients across various industries manage compliance with and enforcement of state and federal environmental and land use laws, including their application to commercial, real estate, construction, and infrastructure transactions. At Gibbons, Mr. LaTourette was the firm’s go-to lawyer to handle all environmental aspects of our clients’ real property acquisitions, developments and redevelopments, and construction projects, which included some of the most high-profile real estate, construction, and infrastructure matters in New Jersey. “When he was here, all of us at Gibbons recognized that Shawn was a rising leader in the environmental bar in New Jersey and throughout the region,” said Patrick C. Dunican Jr., Chairman and Managing Director of the firm. “We are delighted to congratulate him on proving us right.” For an article on...

CREMA Provides the Framework for the Regulated Recreational Cannabis Industry in New Jersey, but Disincentivizes Businesses From Seeking to Achieve Certain Legislative Goals

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Posted in Development/Redevelopment

On January 13, 2021

In November 2020, New Jersey voters passed the referendum to add an amendment to the State Constitution for the legalization of recreational cannabis by a resounding margin of 2 to 1. The amendment went into effect as of January 1, 2021; however, implementation and the establishment of the legal recreational cannabis market requires further legislative and regulatory action. As the first step in this process, the State Assembly and Senate each passed the New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act (“CREMA”). CREMA is the result of tireless legislative negotiation that began well before the November 2020 vote. The end result includes provisions aimed at public policy and social justice considerations, and at creating a competitive business marketplace. For example, under CREMA, the Legislature takes effort to address the disproportionate negative impacts that cannabis prohibition has had on Black New Jerseyans and other minority communities. With the goal of promoting social equity and redressing the historical impact of unequal application of drug laws on minority communities, CREMA provides priority for license applications to businesses located in “impact zones,” which are defined as municipalities that have a population of 120,000 or more or that rank in the top 40 percent for cannabis-related arrests, and mandates that at least 70 percent of tax revenue on...

Pushing the Limit: The District of Oregon Concludes that the Attorney-Client Privilege May Apply to Communications Not Involving Attorneys

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Posted in General Litigation

On December 22, 2020

In Ozgur v. Daimler Trucks N. Am. LLC, Judge Mosman, from the United States District Court for the District of Oregon, found that certain emails in the possession of Daimler Trucks North America LLC (“Daimler”) and that were sought by plaintiff were protected by the attorney-client privilege, as the communications were made for the purpose of obtaining legal advice, despite some of the emails not including an attorney as an author or recipient. In this action, plaintiff filed suit against Daimler for age discrimination in connection with his unsuccessful job application for a position opening posted by Daimler. The position that Daimler posted was already held by a foreign national whom Daimler sought to sponsor for a H1B1 visa so that he could remain in his position. In order to sponsor its employee, Daimler had to advertise the position and establish that there were no U.S. citizens who were willing and able to perform the position, then submit such proof to the Department of Labor. To assist in complying with the Department of Labor and immigration laws, Daimler retained outside immigration counsel. The emails disputed in this proceeding were communications involving outside counsel and Daimler employees, including a recruiting manager and a hiring manager. In determining whether the disputed emails were privileged, the court stated...

USEPA Provides Draft Guidance on Application of “Functional Equivalent” Analysis for Clean Water Act Permitting Program

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Posted in Environmental and Green Issues

On December 16, 2020

The United States Environmental Protection Agency (USEPA) issued a Draft Guidance Memorandum regarding how to apply the Supreme Court’s most recent Clean Water Act decision in County of Maui v. Hawaii Wildlife Fund from earlier this year. In that case (which we previously wrote about here and here), the Court held that the Clean Water Act Section 402 National Pollutant Discharge Elimination System (NPDES) program requires a permit where there is a “functional equivalent of a direct discharge” from a “point source” into “navigable waters.” As the USEPA draft guidance notes, the Court’s decision outlines “seven non-exclusive factors that regulators and the regulated community may consider in determining whether a “functional equivalent of a direct discharge” exists in a particular circumstance. The draft guidance aims to place the functional equivalent standard “into context within existing NPDES permitting framework.” Additionally, the draft guidance “identifies an additional factor” relevant to the analysis. The draft guidance emphasizes that the County of Maui decision did not modify the two threshold conditions that trigger the requirements for a permit. These conditions are that there must be an actual discharge of a pollutant to a water of the United States, and that that discharge must be from a point source. “Instead, Maui clarified that an NPDES permit is required for only...

Section 230: What Is It and Why Is Everyone Talking About It?

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Posted in Federal Legislation

On December 10, 2020

Section 230 of the Communications Decency Act of 1996 (“Section 230”), 47 U.S.C. § 230(c), has garnered significant attention in the media in recent months. But what is Section 230 and why are both President Trump and President-Elect Biden talking about its repeal? Section 230 is commonly referred to as the 26 words that created the internet. It ensures that an online platform can host and transmit third-party content without the liability that attaches to a publisher or speaker under defamation law, and encourages self-regulation by allowing online platforms to remove offensive content in good faith from their platforms. 47 U.S.C. §§ 230(c)(1)-(2). Yelp, Facebook, Twitter, and Wikipedia have flourished in part because of the simultaneous protection from liability for defamatory statements posted by third-party users and from the removal of harmful or discriminatory content. Some believe that repealing Section 230 is long overdue, because what started out as a law meant to reward online platforms that remove harmful content in good faith has transformed into a broad liability shield. In one circumstance, that protection extended even to an online platform that recommended terrorist content to a user based on that user’s preferences. See Force v. Facebook, Inc., 934 F.3d 53 (2d Cir. 2019). Others argue that the repeal of Section 230 would have many...

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