NewsWire

Global Climate Change Ruling Presents Widespread Risks for Business
The U.S. Court of Appeals for the Second Circuit's "overly broad" ruling in State of Connecticut v. American Electric Power Co. Inc. may have extraordinary implications, according to Richard O. Faulk, head of the Environmental Practice Group at Gardere Wynne Sewell. The court held that power utilities can be sued for creating a federal common law global warming public nuisance. "Although it appears to just impact utilities, the decision entails major risks for all industries," he says. "Any industry that generates greenhouse gas emissions is implicated, and that category includes virtually all businesses." The ruling's impact will be among the issues discussed at the Oct. 28 U.S. Chamber of Commerce Legal Reform Summit in Washington, D.C., where Faulk will serve as a "Climate Change: The New Mass Tort For the 21st Century?" panelist. To interview Mr. Faulk, contact Rhonda Reddick at 800-559-4534 or rhonda@androvett.com.

New EPA Rules Present Challenges for Struggling Businesses
More than 10,000 facilities across the United States, ranging from electricity producers and oil refineries to municipal landfills, must meet new Environmental Protection Agency requirements on monitoring greenhouse gas emissions by January 1. "As one of the first salvos in imposing a GHG regulatory system, it has a number of implications, particularly for public companies," says Scott Deatherage of Thompson & Knight. "The costs, financial disclosures and public relations aspects of this and other pending climate change legislation should be a strategic issue for corporate directors and managers." Although some industries had sought to delay the new requirements, facilities now have less than four months to prepare. "It may be a challenge for some businesses to make the significant investments in monitoring equipment and processes to meet that deadline." To interview Mr. Deatherage, contact Barry Pound at 800-559-4534 or barry@androvett.com.

Hospitals, Doctors Embracing Digital Medical Records
Digitizing medical records is one component of health care reform that has already gained momentum, as physicians and hospitals make substantial investments to revolutionize the way patient records are maintained. In addition to tapping governmental assistance, many independent physicians are seeking financial help from hospitals to make the costly transition. Healthcare industry attorney Mary Jean Geroulo of Stewart Stimmel LLP in Dallas warns that hospitals must be careful in navigating the federal rules governing the delicate relationships between hospitals and non-employee doctors. "There isn't a one-size-fits-all model for making the transition," she says. "The regulations significantly limit what a hospital can provide as an incentive to a non-employee physician, and the consequences of not complying can be substantial." To interview Ms. Geroulo, contact Robert Tharp at 800-559-4534 or robert@androvett.com.

Foreign Dollars May Flow to Mexican Oil Industry
Under newly enacted regulations, Mexico's state-controlled oil company has received greater autonomy to contract with foreign and national corporations for oil and gas services. Next month the Pemex board of directors is expected to approve specific guidelines for incentives for both Mexican and foreign investment in activities such as oil and fuel refining, storage, and pipeline transportation. "Both the Mexican government and Pemex believe they can significantly increase and diversify oil production by attracting technically capable, private service companies," says Gabriel Ruiz of Thompson & Knight's Monterrey, Mexico, office. "The new framework has the potential to attract more private investment by giving Pemex and its contractors greater legal tools and flexibility to help develop an ailing Mexican oil sector." To interview Mr. Ruiz about the Mexican oil industry, contact Barry Pound at 800-559-4534 or barry@androvett.com. 

Houston Oil Spill Could Lead to Legal Mess
Cleaning up the Houston Ship Channel after last weekend's oil spill should take a matter of weeks, but sorting out the legal issues could take months, says Houston maritime attorney Charles Herd of The Lanier Law Firm. "The economic consequences of oil spills go far beyond the water," says Herd, who has handled and monitored several oil spills in Houston and elsewhere. From vessels that were delayed due to the Ship Channel's closing, to businesses across the country whose operations were interrupted, there likely will be dozens of legal claims coming out of this incident. "While the owners of the ship that spilled the oil have taken responsibility, it will be interesting to see what happens when the Coast Guard and insurance companies complete their investigations." To interview Mr. Herd about maritime law issues, contact Alan Bentrup at 800-559-4534 or alan@androvett.com.

Resort Developer Imposing Unreasonable Dues, Stealing Dreams, Lawsuit Claims
Property owners at a Central Texas resort development on Lake Whitney have joined together in a federal class action RICO lawsuit charging that the developer is bilking funds intended to benefit all property owners at the resort. Owners at White Bluff Resort say the developer imposes unreasonable association fees that generate more than $4 million annually, and then diverts the money to other businesses. A state court already has ruled the fees improper, and attorney Martin Rose of Rose•Walker, L.L.P., in Dallas says response to the class action lawsuit has been overwhelming. "This is a case of a real estate developer who has abused his power by assessing ridiculous fees to line his own pockets rather than continue to develop the real estate," says Rose. "The people buying the lots are just everyday folks with dreams of retiring on the lake, and this company is stealing their dreams." To interview Mr. Rose, contact Robert Tharp at 800-559-4534 or robert@androvett.com.