Attorneys of a certain age may fondly remember watching a particularly absurd ABC Family comedy game show in the late ‘90s and early ‘00s. Anchored by host Drew Carey (the real Drew Carey, not the svelte, bespectacled hipster who now tells you to get your pets spayed and neutered on The Price is Right) and his signature tagline “Where the rules are made up, and the points don’t matter!”, Whose Line Is It Anyway was a staple on the boxy living-room TVs of my youth.
For some time now, questions have hovered over a certain kind of incentive deal. Where most agree that it’s fine to use incentives for manufacturers, distribution centers or corporate headquarters, what about large-scale mixed-use real estate developments? In particular, what if part of the project rents apartments?
In late 2012, an American company, Ralls Corporation, with two Chinese ultimate owners, purchased certain wind farm projects in Oregon, including associated real estate. What began as a routine cross-border transaction sparked a three-year lawsuit between Ralls Corporation and the Committee on Foreign Investment in the United States (CFIUS), an inter-agency committee housed within the Executive Branch and tasked with reviewing foreign investments in the U.S. based on national security concerns. In a nutshell, CFIUS determined that Ralls Corporation’s acquisition of the wind farm projects posed a national security threat, and required Ralls Corporation to divest its interest in the project.
Court of Appeals reverses judgment for bank customer on breach of fiduciary duty claim in case where representations in question were made by an individual that was not employed by the Bank at that time.