What do wetlands, asbestos containing materials (ACM) and open regulatory violations all have in common? Answer: if ignored, these business environmental risks can turn an otherwise sound investment in commercial real estate into a bad one.
A recent federal case in New York was a reminder that in contract litigation, the parties should be careful what they claim about how "unambiguous" a contract provision assigning environmental liabilities, as elsewhere, and that in contract drafting, even apparently simple phrases have certain meanings and not others. The indirect lesson is that business people should not assume that environmental and real estate lawyers' insistence on the use of very specific terms in contracts is more academic than practical and serves no useful purpose. Indeed, the care with which such terms were defined and used provided the winning margin for Cytec Industries (Cytec).