Monday, January 27, 2025

 

Corporate Transparency Act Update: It’s Not April Fools Yet But It Kinda Feels Like It….

By: Amanda Messa, General Counsel, LEMOINE

I’m starting to think the courts are either (a) secretly conspiring to keep in-house counsel guessing as to whether they need to carve-out time to focus on Corporate Transparency Act (CTA) filings or (b) trying to increase Division 11’s blog activity on The Connector.  Either way, here’s a quick update on the latest in the CTA legal saga – the gift that just keeps on giving.  On January 23, 2025, in the Texas Top Cop Shop case, the United States Supreme Court granted the Government’s request to stay the nationwide injunction on the enforcement of the CTA issued by the United States District Court for the Eastern District of Texas, Sherman division.  On its face, this ruling appeared to allow enforcement of the CTA by FinCEN (Financial Crimes Enforcement Network).  The ruling did not go to the underlying merits of the dispute surrounding the CTA but rather was procedural in nature.  The substantive issues in that case are scheduled to be taken up by the Fifth Circuit Court of Appeals in the coming months. 

Late last week, FinCEN posted the following update on its website clarifying that companies are not currently required to file beneficial ownership information because of a separate nationwide order issued in Texas:

“As a separate nationwide order issued by a different federal judge in Texas (Smith v. U.S. Department of the Treasury) still remains in place, reporting companies are not currently required to file beneficial ownership information with FinCEN despite the Supreme Court’s action in Texas Top Cop Shop. Reporting companies also are not subject to liability if they fail to file this information while the Smith order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.”

The bottom line is there continues to substantial uncertainty surrounding enforcement of the CTA with multiple ongoing legal battles and now a new presidential administration.  If you haven’t already allocated time to dig in on applicable exemptions and filing requirements, it looks like it’s probably time to pour yourself a large cup of coffee and engage in some light reading on the subject. 

Tuesday, January 14, 2025

Meet the Forum's In-House Counsel: ROBERT PRESTON BROWN

This post was originally published by the D1 Blog, The Dispute Resolver, on November 11, 2024 by Jessica Knox.  Link to original post: https://abaconstructionforumdivision1.blogspot.com/2024/11/meet-forums-in-house-counsel-robert.html

 


Company:
 McKenney's, Inc.

Email: robert.p.brown@mckenneys.com

Website: www.mckenneys.com

College: Georgia State University (B.A. Political Science)

Law School: Emory University School of Law (JD 1989)

States Where Company Operates/Does Business: Headquartered in Atlanta, GA along with an office in Charlotte, NC, and does business in VA, NC, SC, TN, GA, AL, and FL. 


Q: Describe your background and the path you took to becoming in-house counsel.

A: I dreamed of being a lawyer in high school, but that was not a realistic option for me at that time. So, after working my way through college, I took a job as a service technician and soon was promoted to a salesperson. My sales job worked out very well, and four years into it, my wife gave me an ultimatum -- seek your dream job now or forever hold your peace on the matter. Thereafter, married with two children, I quit my job, my wife returned to teaching, and I went to law school.

My legal career began at a large firm in Atlanta, and a few years into it I had the good fortune to work on a construction case. As the firm got more construction cases, we created a Construction Law Section. That section boomed with business, which afforded me the opportunity to handle my own cases as First Chair and serve as “Managing Partner” in large multi-million-dollar international construction arbitrations.

Based on that experience, gained over 14 years at the firm, The Shaw Group recruited me to serve as its Vice President of Litigation. In that role, I was responsible for Shaw’s legal disputes and my “portfolio” of claims often exceeded a billion dollars. My 8½ year tenure at Shaw ended when Shaw was acquired by Chicago Bridge & Iron.

After leaving Shaw, I was presented with an opportunity to join McKenney’s, Inc. as its first General Counsel and as a business partner in the company. I have been at McKenney’s for over 10 years, which will soon end as I plan to retire from the company next year. 

Q: How does working in-house compare or differ from firm life?  

A: On the road to becoming an equity partner at my firm, one of my most critical keys to success began to shift from producing an excellent legal product to selling an excellent legal product. I found that ironic since I left my first career as a salesperson to practice law, and it seemed like continued success in my legal career would require, in no small part, transitioning back into a salesperson as Rainmakers rule at law firms. As in-house counsel, I do not have these same demands. 

Being in-house also intensified my need to be an efficient, effective problem-solver, which I very much enjoy. One of my most challenging, yet rewarding, legal career experiences occurred soon after my promotion to Deputy General Counsel. Shaw’s senior management gave me the special assignment of serving as Legal Counsel for Shaw’s Vogtle Units 3 & 4 multi-billion-dollar nuclear power project. Decisions and solutions had to be made and carried out in real time, often with no margin for error. An in-house counsel position allows you to be “in the trenches” with the business leaders and meaningfully contribute to the company’s success.

Q: What kind of work does your company do? Do you focus on specific sectors, states, or regions?  

A: The Shaw Group was a global Fortune 500 company providing engineering, construction, fabrication, environmental, and industrial services in industries ranging from Power, Energy, Oil & Gas, Chemical, Environmental, Infrastructure, and Government.

McKenney’s, Inc., one of the largest mechanical contractors in the United States, provides construction, engineering, design, HVAC, plumbing, controls, commissioning, and maintenance services in the commercial, healthcare, government, and higher education markets working on projects such as office towers, stadiums, hospitals, and data centers. 

Q: What advice would you give to outside counsel about how to meet or even exceed their client's expectations?  

A: The single most important piece of advice I would give outside counsel about how to meet or exceed their client’s expectations is: you must obtain and maintain a crystal-clear understanding of what the client’s expectations are. Seems simple, but that often is more elusive than you think. Sometimes, the client and/or the in-house representative of the client have not fully formed their expectations, or the expectations have changed over the course of the matter. So, outside counsel must build a reliable communication channel into the business, and ensure your on-going interactions have the proper objectives and are with the right people. Do not just provide updates on the status of the matter. Engage in an ongoing dialogue to keep track of the goals and expectations of the client and, critically, continually confirm what the client defines as success. It is not always winning the case. If you truly understand, and in many instances help define, what qualifies as success at any given point in the matter, you give yourself the best chance of meeting or exceeding the client’s expectations.

Q: What are the work/business-related issues that tend to keep you up at night? 

A: AI offers great promise that comes with real peril, which can fall upon the in-house counsel to protect against. Senior management recognizes the need to have stringent safeguards in place to guard against employees loading the company’s confidential or proprietary information into any AI systems. That, however, can fall short of adequately protecting the company when you fully comprehend how insidiously AI systems, which thrive on data, super-efficiently gather, analyze, and synthesize mega amounts of data. So, companies can successfully prevent their confidential/proprietary data from entering through the front door of AI systems. However, the proliferation of embedded AI, its ease of use, and its prompt delivery of tangible benefits, has me questioning whether market leading companies seeking to take advantage of AI can implement AI use policies and procedures that successfully prevent AI from siphoning off the market leaders’ data and making it available to their competitors to educate themselves on how they can overtake the market leaders.  

Q: What do you plan on doing after retiring? 

A: Having reached 45 years of blissful marriage, my wife and I both agree retirement for me will not involve sleeping late and lounging around the/her house. Instead, like most retiring construction attorneys, I hope to spend time doing arbitrations and mediations. I prefer serving as a mediator, which I have been doing on a part-time basis for the past 10½ years while serving as McKenney’s General Counsel. I somehow found the time to do that because of the fulfilment I derive from helping people reach amicable resolutions, particularly when that appears impossible. Interestingly, rather than my 14 years as an outside counsel litigator, I find my in-house experience – eight plus years working to resolve billions in claims for a General Contractor and ten plus years resolving all claims for a subcontractor – most beneficial to me as a mediator.

Monday, December 30, 2024

The Corporate Transparency Act- To File or Not to File….That is the Holiday Question?

By: Amanda Messa, General Counsel, LEMOINE

UPDATE:  The Holiday Fun Continues….For Now

Just when we thought all hope for a peaceful beginning to 2025 was lost….a different Fifth Circuit panel has come to the rescue – On December 26, 2024, the U.S. Court of Appeals for the Fifth Circuit entered an order that has the effect of again prohibiting the enforcement of the Corporate Transparency Act (CTA) and staying all CTA filing deadlines.  As part of its ruling, the Fifth Circuit panel said it was taking such action in order to preserve the constitutional status quo while the court considers the parties’ substantive arguments in an expedited appeal.  The Fifth Circuit has issued an expedited briefing schedule and oral argument is currently scheduled for March 25, 2025.

Stay tuned for further litigation developments – and make sure you’ve gathered the information required to file if the injunction is once again lifted.

ORIGINAL POST:  In early December, we were given what many viewed was an early Christmas present from the U.S. District Court for the Eastern District of Texas – a beautiful and shiny nationwide preliminary injunction halting ALL deadlines and filing requirements under the Corporate Transparency Act ("CTA").  In the weeks following the issuance of the injunction, you could almost hear the joy of in-house lawyers as they sighed a sigh of relief and scratched that item from their long and never-ending to do lists.  Unfortunately, the holiday story doesn’t end there.  Much to the chagrin of many business owners and certainly some in-house lawyers too, on December 23, 2024, the U.S. Court of Appeals for the Fifth Circuit got an idea – an awful idea – when the Court granted a stay of the preliminary injunction enjoining the CTA entered in the case of Texas Top Cop Shop, Inc. v. Garland

As it currently stands, in addition to our other responsibilities in the New Year, it appears we will need to get back to analyzing the 23 exemptions under the CTA to determine if a filing will be required for our reporting companies in early January 2025.     

Below is a summary of the revised deadlines as posted on FinCEN’s website:

  • Reporting companies that were created or registered prior to January 1, 2024 have until January 13, 2025 to file their initial beneficial ownership information reports with FinCEN. (These companies would otherwise have been required to report by January 1, 2025.)
  • Reporting companies created or registered in the United States on or after September 4, 2024 that had a filing deadline between December 3, 2024 and December 23, 2024 have until January 13, 2025 to file their initial beneficial ownership information reports with FinCEN.
  • Reporting companies created or registered in the United States on or after December 3, 2024 and on or before December 23, 2024 have an additional 21 days from their original filing deadline to file their initial beneficial ownership information reports with FinCEN.
  • Reporting companies that qualify for disaster relief may have extended deadlines that fall beyond January 13, 2025. These companies should abide by whichever deadline falls later.
  • Reporting companies that are created or registered in the United States on or after January 1, 2025 have 30 days to file their initial beneficial ownership information reports with FinCEN after receiving actual or public notice that their creation or registration is effective.

The legal battles and holiday fun surrounding the CTA are not over.  As a result, we will all need to continue to monitor for additional updates and guidance from FinCEN or a superseding order from the courts as a result of the ongoing litigation.  One final (and hopefully helpful) holiday tip – FinCEN has developed a fairly comprehensive Frequently Asked Questions page that is a good resource as you run into questions related to these filings:

https://fincen.gov/boi-faqs

Happy Holidays!

Monday, December 9, 2024

 2024 FALL MEETING TAKEAWAYS

By: Carl J. Circo

The Fall Meeting featured and focused on construction design. While the program was packed with great information, material, and networking opportunities, here were my main highlights:

  • Diversity & Inclusion Breakfast—Carla Swickerath (Studio Libeskind) spoke passionately about architectural responses to several tragedies, including the antisemitic murders at the Tree of Life Synagogue in Pittsburgh and the September 11th attack at the World Trade Center. The presentation demonstrated (quite literally) how design can be healing at a powerful symbolic level. It served as a reminder that the practice of architecture matters far beyond any of its legal aspects.
  • Plenary1, "Design: Where it All Begins"—This session reinforced the importance of understanding the different perspectives of each project participant, beginning with the earliest stages of the design process, and reiterated that simply listening is every bit as important as demonstrating technical skills.
  • Plenary 2, "Less than Perfection: Demystifying the Standard of Care for Design Professionals"—This session examined the important relationship between a design professional's contractual standard of care and professional liability insurance.
  • Plenary 3, "Leave it to the Professionals: Why Construction Administration Services Should Not be Optional"--This  presentation focused upon the design professional's responsibilities for document review (e.g., submittals, change orders, requests for information) and the importance of the design professional's role in observing the work and assisting in the payment process, with claims and disputes, confirming and ruling upon substantial completion, and project closeout and final completion.
  • Division 6 & 11 lunch program—This program offered practical information, tips, and best practices focused on using AI technology for compliance with wage-theft laws.
  • Workshop A: "Best Practices for Negotiating Design Contracts"—This workshop provided practical tips and consideration relating to, among other design-specific issues, treatment and handling of IP licenses, and warranty, payment, and indemnification practices.
  • Plenary 4, "Viewing the Design-Build Process and Contractual Concerns Through the Eyes of the Project Participants"—This session offered helpful insights regarding the ever-emerging project delivery method referred to as progressive design-build, dispute resolution, and the importance of the keystone construction project principle of maintaining collaborative relationships to successfully and productively manage design-build projects.
  • Plenary 5, "The Impact of BIM on Design and Construction: Legal and Practical Perspectives"—This program covered the critical legal issue surrounding the movement toward designating a BIM document as a contract document. Beyond this, the session explored different levels of development in BIM models and the importance of a BIM execution plan.
  • Plenary 6, "AI in Construction: Navigating Legal & Ethical Terrains"—This session reviewed relevant aspects of the ABA’s Model Rules of Professional Conduct and emphasized AI challenges with respect to privacy and confidentiality. The session also covered project-specific practical matters related to AI (e.g., the benefits of AI for project productivity and for managing schedule and budget).


     PITTSBURGH FORUM SOCIAL WRAP-UP

By: Amanda Messa

While Pittsburgh may be commonly referred to as the “Steel City” for its dominant role in the history of the U.S. steel industry, from October 23-25, 2024, Pittsburgh became known as Division 11’s “Social City” providing us unique and memorable experiences as part of the annual Fall Meeting.   For many of us, it was our first trip to Pittsburgh but I feel confident after experiencing all the city had to offer in terms of food, drinks and even a little last minute sports entertainment, it won’t be our last.  We certainly started things off on an elevated note with our Division 11 dinner at Monterey Bay Fish Grotto where we experienced the most scenic Pittsburgh view paired with an outstanding culinary experience.  We left dinner full – not only from the unique seafood dishes served – but also, the meaningful and interesting discussions we got to have with our fellow Division 11 members that evening.  We covered everything from legal department structures to artificial intelligence.  And to top it all off, we got to celebrate when I got the exciting news at dinner my son made the middle school basketball team.

In addition to our Division 11 dinner, there were opportunities throughout the week for networking with Division 11 members at the hotel bar – During some of those networking sessions, I was even able to elicit some “fun facts” about our members.  As it turns out, we have a former college mascot among us (Geaux Tigers!) – we’ve got a member who grew up with lions, a member who can ski 34+ miles at over 58 mph and someone who has literally saved two lives.  Rumor has it if you come to our next meeting in Tampa, you can meet these fascinating members too.

On our second day in Pittsburgh, we attended sessions and got to cheer on two of our very own Division 11 members – Jimmy Germano’s plenary panel educated us on approaches for design professionals providing Construction Administration services and Shelby Skeabeck brought industry experts together at our lunch meeting to discuss a Davis-Bacon related app that helps contractors with compliance issues.  Later that evening, thanks to a last minute suggestion from Jon Walden, a small but mighty group of Division 11 members (and some additional recruits from other Divisions) got to cheer on Pittsburgh as they pulled off a huge win against Syracuse.

If you missed out on Pittsburgh, don’t worry because there are more great opportunities to socialize with Division 11 just around the corner- we can’t wait to see everyone in Tampa and Austin!











Wednesday, September 18, 2024

 

CONSTRUCTION LAW ED.

D11 members who teach or have an interest in the academic aspects of construction law may be interested in the recent launch of Construction Law Ed., a free resource offering materials and ideas for construction law teachers and students. The site, which is entirely non-commercial, is a cornerstone of my campaign to raise the standing of construction law in the academy. While Construction Law Ed. is my personal project, I am actively pursuing collaborations with Forum members and other construction lawyers to support and advance construction law education. If you teach a course relating to design or construction and we have not already touched base, I would love to hear from you. Also, I am working with other construction law instructors to develop a national list of lawyers willing to make guest appearances (in person or virtually) in construction law courses. Even if you do not teach and have no interest in guest appearances, however, please consider taking a look at the website and sharing it with any contacts you have in law schools and in programs for engineering, architecture, and construction management students. The URL is: https://constructionlawed.org

Thanks,

Carl Circo, Ben J. Altheimer Professor of Legal Advocacy and D11 Steering Committee member

Friday, August 30, 2024

On August 15, 2024, during our Membership Meeting monthly call we had a hot topic speaker, Cari Stinebower of Winston & Strawn.  She gave a presentation on the Corporate Transparency Act and the new registration requirements for any company doing business in the USA. She presented to our group and provided the following information below (in summary) and also provided the attached slides for our use and reference. Special thanks to Kathy Rowe of Freehold Capital Management for bringing her to the group. Presentation

On September 30, 2022, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) published a highly anticipated rule (the BOI Reporting Rule) that implements the ultimate beneficial ownership information (BOI) reporting requirements of the Corporate Transparency Act (the CTA).

The CTA, which is part of the Anti-Money Laundering Act of 2020 (the AML Act) and enacted into law as a part of the National Defense Authorization Act for Fiscal Year 2021, establishes BOI reporting requirements for the vast majority of privately held corporations, limited liability companies and other similar entities created in, or registered to do business in, any of the states in the United States (U.S.), including the District of Columbia, Puerto Rico and other U.S. Territories (collectively, Reporting Companies). 

The BOI Reporting Rule became effective on January 1, 2024. Note that on November 29, 2023, FinCEN issued a final rule amending the BOI Reporting Rule to extend the filing deadline for initial BOI reports from 30 calendar days to 90 calendar days for entities created or registered on or after January 1, 2024. Click here to see the final rule. On December 12, 2023, FinCEN published frequently asked questions on the BOI Reporting Rule. Click here to see the FAQs. In addition, FinCEN has published a Small Entity Compliance Guide.  Click here to link to that Guide


Featured Posts

  Corporate Transparency Act Update:  It’s Not April Fools Yet But It Kinda Feels Like It…. By: Amanda Messa, General Counsel, LEMOINE I’m...