Wednesday, June 10, 2009

Green Lawsuits Starting to Sprout

Litigation over green buildings that don't get LEED certification (Leadership in Energy and Environmental Design), resulting in the failure of building owners to receive tax credits is on the rise.

Contractors have allegedly represented to developers and building owners that their building will be environmentally friendly and qualify for tax credits.

In a recent case, the developer claimed that a builder failed to meet environmental standards set by the U.S. Green Building Counsel, a Washington D.C. based non-profit that creates standards and certifies buildings as environmentally friendly.

Many municipalities have been offering tax credits or zoning variances for construction that meets the USGBC standards. It is expected that in the future, municipalities will require all buildings to meet such standards. What happens when buildings don't meet the standards?

The builders will claim that the certification entities have wrongfully withheld certification. They may even attempt to add the certification companies as defendants, which may be difficult since they are private companies who claim they have no legal obligation to approve projects.

Other issues in this area include what happens when buildings are built to green standards, but don't deliver green results and result in other unforeseen problems.

You can be sure there will be much litigation in this area in the days, weeks, and years to come.


Read this New York Times Article for more reveling information: http://greeninc.blogs.nytimes.com/2009/05/29/the-legal-risks-of-building-green/

Report by Harvard Law School Points to Potential Legal Problems in Building Green: view the PDF here: http://www.mgkflaw.com/Green%20Building%20Revolution.pdf

For more information about building green, view the NRDC site: http://www.nrdc.org/buildinggreen/leed.asp