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Regardless of the outcome of the anticipated June 28, 2012, Supreme Court decision on healthcare reform, leaders in the industry say that they are already focused on cost containment. Panelists at a recent healthcare summit say they are looking to take some services out of the hospital and put them in more convenient (and cheaper) locations. Calling it the “retailing of medical office real estate,” healthcare companies are now providing some services in retail buildings or repurposing other types of real estate instead of building the more costly typical medical office building.

Ever since the Pruneyard decision, public shopping malls have been seen as an extension of the public square. Although the property is private, protesters have free speech rights granted by the U.S. and California Constitutions. This can create problems for landlords who are trying to provide a pleasant retail environment for their guests and tenants. Watch this video for more background information on the free speech rights issues.

Recent case law has changed the rules, but Allen Matkins has created a set of model rules for shopping center landlords. These rules address the time, place and manner issues upon which free speech can be limited in shopping malls.

A unanimous Supreme Court held, on March 21, 2012, that parties who receive administrative compliance orders from the U.S. Environmental Protection Agency ("EPA") under the authority of the federal Clean Water Act are entitled to "pre-enforcement review," that is, they may bring lawsuits to challenge the jurisdictional basis for such orders in court. When EPA determines that a person is discharging a pollutant into the "waters of the United States" without a permit, the Clean Water Act requires EPA either to issue a compliance order or to file a lawsuit to enforce the Act's requirements. Compliance orders have become a preferred tool for EPA to obtain quick remediation through "voluntary compliance." Parties who questioned the government's assertion of federal jurisdiction over their property either had to obey the government's compliance order, thereby losing the benefits of their ownership of their land, or refuse to comply, thereby risking ruinous liability for penalties of up to $37,500 per day if EPA decided to sue and the court decided that the government had properly asserted federal jurisdiction.

WRAP insurance in a single "WRAP insurance program" can cover all players in a construction project. These programs are typically either owner controlled or contractor controlled. These WRAP programs can often save significant project costs due to reduced premiums and reduced costs of potential litigation.

Drop and swap transactions can allow for big tax savings, but executing these transactions requires careful planning. A drop and swap transaction is one in which shares of a property owned by a partnership are distributed to each partner and then used to purchase a new property. Timing, however, is critical because if the time between the drop and swap (or the reverse swap and drop) is short, it can be argued that the property was never held for investment purposes - a requirement for a 1031 exchange. It's important that you consult an attorney and carefully plan your drop and swap transaction. Running afoul of the positions taken by the IRS or the California Franchise Tax Board could result in an audit or a trip to court.

In California, mechanic's lien laws changed. Owners are now entitled to receive a "notice of mechanic's lien." Previously, owners had no way of knowing about a mechanic's lien without running a title report. This often led to frustration among owners who were taken by surprise and were often unable to refinance due to liens that they were unaware of. The new changes require that the owner be sent a "notice of mechanic's lien" before the claim is filed.