Real Estate Advisor Law Blog

Most Expensive Real Estate

Brad Kaplan — Tue, 03 Apr 2012 07:27:03 -0600

Business Insider recently published the 4th Quarter 2011 list of the cities with the most expensive real estate (follow the link to see the article). The chart is below. The list quickly underscores what an affordable environment in which we live and work in the United States.

Put That Unproductive Space to Use !

Brad Kaplan — Fri, 16 Mar 2012 09:01:57 -0600

Take a look at how the Korean's are putting previously unproductive space to use and combining internet sales with brick and mortar real estate. Good idea huh !

Where to Start with Public Infrastructure

Brad Kaplan — Thu, 08 Mar 2012 08:32:04 -0600

In order to replace aging public infrastructure assets you have to move the existing ones out of the way. See the video below on how a bridge across the Ohio River was removed to make way for a replacement. This one is for our readers who are in the demolition, road building and engineering industries. Enjoy !

Opportunities in the Housing Market

Brad Kaplan — Wed, 29 Feb 2012 09:30:34 -0600

2012 is likely to be similar to 2010 and 2011 in many segments of the real estate industry. However, the residential rental market is frequently mentioned as a bright spot. There is more demand than supply to meet the needs of the market place. Apartment communities and apartment buildings will surely meet most of the need with an already existing ready to go inventory.

The over building and easy credit of the pre-recession period put many homeowners into properties which are presently under water. The lenders are faced with the decision to either:

1. Foreclose and sell;

2. Amend and extend the loan; or

3. Allow the homeowners to short sell.

None of which are good options for anyone. Employment opportunities make increasing family incomes difficult to achieve; so even employed homeowners which are not in default can not keep up as their homes lost market value as a result of foreclosures and over supply. The best thing for the home owner is to remain in their home, keep it up and seek to stabilize the neighborhood.

We can wait for the government to legislate a solution, or we can consider what is best for our lending institutions, communities and neighbors. Richard Florida in his book The Great Reset identifies the problem, cause and some solutions such as:

1. Reduce interest rates to reset the home financing to a level in which the homeowner can afford to remain in the home. Surely, this would cost less than foreclosing and selling a home at a loss.

2. Agree with the homeowner to take a deed in lieu of foreclosure, transfer ownership of the home to either the lender or a rental company; rent the home to the former homeowner at a market rental rate; and give the homeowner or renter the option to buy the home back (with appropriate credits for previously paid equity etc.).

Keep the home occupied by the people who will take care of it the best and give them an opportunity to once again become a home owner. Everyone wins when the property values in a neighborhood stabilize.

Lenders and developers can create opportunity where everyone benefits and the capital cost is low.

Reminder: Statutes Require Residential Builders to Provide Certain Notice to Home Buyers

Dacia Crum — Wed, 08 Feb 2012 13:02:26 -0600

Ohio and Kentucky statutes require residential builders to provide certain notice to home buyers. While there is no new law on this, the construction attorneys of Ulmer & Berne LLP have seen this issue come to light many times this past year; thus, prompting this refresher alert on Ohio and Kentucky notice statutes.

Both Ohio and Kentucky have notice statutes, which require that builders, upon entering into a contract for the construction of a residence (whether single-family or multi-family), provide notice of the builder's right to offer to cure construction defects before a homeowner may commence litigation against the builder for any alleged construction defects within the residence. Per Kentucky Revised Statute 411.260, such notice shall be substantially similar to the following form:

Sections 411.250 to 411.260 of the Kentucky Revised Statutes contain important requirements you must follow before you may file a lawsuit for defective construction against the builder of your home. You must deliver to the builder a written notice of any construction conditions you allege are defective and provide your builder the opportunity to make an offer to repair or pay for the defects. You are not obligated to accept any offer made by the builder. These are strict deadlines and procedures under state law, and failure to follow them may affect your abililty to file a lawsuit.

Per Ohio Revised Statute 1312.03, such notice must be conspicuous and in substantially the following form:

Ohio law contains important requirements you must follow before you may file a lawsuit or commence arbitration proceedings for defective construction against the residential contractor who constructed your home. At least sixty days before you file a lawsuit or commence arbitration proceedings, you must provide the contractor with a written notice of the conditions you allege are defective under Chapter 1312. [sic] of the Ohio Revised Code, [sic] the contractor has the opportunity to offer to repair or pay for the defects. You are not obligated to accept any offer the contractor makes. There are strict deadlines and procedures under state law, and failure to follow them may affect your ability to file a lawsuit or commence arbitration proceedings.

Although the aforementioned statutes do not contain any apparent language regarding repercussions to builders for not following these requirements, providing such notice is a good way to educate the buyer and provide the builder the opportunity to address the buyer's complaints before a suit is filed and attorney's fees start to mount.

Ohio Public Construction Reform - Update

Jesse Lipcius — Thu, 02 Feb 2012 14:33:58 -0600

New rules promulgated under Ohio’s Public Construction Reform (the “Reform”) have been released by the Joint Committee on Agency Rule Review. The new rules include: (1) Rules for Prequalification of Prospective Bidders on Subcontracts; (2) Rules for Best Value Selection of Construction Manager and Design-Build firms; and (3) Rules for the Form of Subcontracts. The Rules for Prequalification and Best Value become effective 2/02/12, and the Rules for the Form of Subcontracts became effective 12/26/11. The Joint Committee also released a new form of subcontract for public jobs in Ohio.

Among other requirements, the new Prequalification Rules: (1) place significant emphasis on a bidding subcontractors' goals and history related to diversity and economic inclusion; and (2) permit a public authority to require a construction manager or design-build firm to employ additional criteria, in order to suit the unique needs of a project, including "knowledge of the local area and working relationships with local suppliers." As such, local subcontractors with strong supplier relationships, firm diversity goals and proven track records for economic inclusion should have an advantage when bidding public works in Ohio.

The new Prequalification Rules and other important information concerning the Reform may be found at http://ocr.ohio.gov/

"Pocket Neighborhoods": A Concept Worth Consideration

Brad Kaplan — Tue, 03 Jan 2012 12:45:37 -0600

Architect Ross Chapin, who has spent his career championing the "pocket neighborhood" concept has proven that "walkability" and "new urbanism" concepts which are successful in the Northwestcan be successful in the Midwest. TheInglenook community development in Carmel, Indiana is proof that "pocket neighborhoods" can be successful anywhere. We particularly like the concept for in-fill parcels and in first and second ring suburbs. To learn more about the concept see the links above and the video below.

Embrace Change

Brad Kaplan — Tue, 27 Dec 2011 08:50:53 -0600

As 2011 winds down and 2012 ramps up, I wanted to share with our readers the following thoughts from Seth Godin which he wrote on his blog recently:

Unexpected turbulence

Is there really any other kind?

If we see turbulence coming, we tend to avoid it. The art is in knowing that turbulence might come and looking forward to it, bracing for it and embracing it at the same time.

If your plan will only succeed if there is no turbulence at any time, it's probably not a very good plan (either that or you're not going anywhere interesting.)

See you soon !

What Is In; What Is Out: One Lawyer's Perspective

Scott Kadish — Tue, 20 Dec 2011 13:48:11 -0600

It is the time of the year to reflect on what happened this past year. What is trending? What did we do right? What did we do wrong? What can we expect next year?

Tweeting is in. Now the challenge is to figure out a way to monetize it as opposed to just joking with my kids. In fact, the whole social media thing is trendy. But to what end? Notwithstanding this Blog, until someone way smarter than I can figure out some new way to utilize it, I am writing it out of my business plan. (It may stay in my social plan for a while because there is funny interesting stuff out there. You can follow me on Twitter and decide for yourself though whether anything I say is interesting or funny. My kids would probably say NOT.)

Apple – computers, tablets, phones – is in. All the way in. Even law firms who as an industry are ultra-concerned about security have made the switch. I resisted as long as I could in fear of my fingers being too fat to work the touch screen. People told me I’d get used to it – they were right. Not sure how I ever lived without my Apple phone, I-Pod, I-Pad and PC.

Urban life is in. In Cincinnati, it’s Over The Rhine. Washington Park being completely upgraded, several new restaurants, bars, shops and apartments, really cool old world architectural features, and Findlay Market. Gives local business owners a real chance. New Urbanism and Walkability are in.

3-D is in. New movies, remakes of old movies – all 3-D. I like the 3-D effect, but do I really need to see Beauty and the Beast all over again just to see a candle stick hover over my head?

Electric cars? Why isn’t that a done deal yet. I mean a real car you would actually like to own and drive. Why aren’t they everywhere?

Is it me or is the list of impressive politicians shrinking? We need to fix the system so that we are attracting the best and brightest to help govern.

Another thing broken is college sports. Division 1 football needs a playoff. The whole conference alignment makes no sense (San Diego State is in the Big East?). Title 9 does not work anymore. It has led to the elimination of whole sports programs at some schools, the reduction of baseball scholarships at all schools and other inequitable consequences. We need to support gender equity – I just don’t think Title 9 is the way to do that anymore. And the NCAA has lost its way. The purpose of the NCAA should be to protect the student athlete. It seems instead that it exists solely to protect the income streams of the largest universities.

Real estate lending has changed. Lenders are much more involved in the entire deal structure – not just the terms of the loan but the terms of the underlying deal. Much less willing to take risks. Leases, acquisitions, redevelopment – all tougher to do. Lenders may be right to take this approach. But it places increased level of importance on the experience, intellect and service attitude of the lender and its attorneys.

I am concerned about business prospects for 2012. But I was concerned going into 2011, and 2011 ended up pretty good. Wishing everyone a happy, healthy, prosperous 2012.

Smart Buildings Done Easy !

Brad Kaplan — Thu, 01 Dec 2011 09:38:20 -0600

Take an old technology which has not seen any real updates in decades, make it internet connected and add a few semiconductors (to make it smart) and radically change the way offices and homes consume energy ! That is what the Nest Learning Thermostat promises to do. See the video below.

Until Death Do Us Part

Brad Kaplan — Wed, 02 Nov 2011 11:22:54 -0600

Commencing January 1, 2012, legal, real estate and insurance professionals will be required to advise clients of KRS 381.280 which creates a forfeiture of property rights for the taking of the life of a party in interest to the same prior to such parties executing deeds and other documents in question. It works like this: take the life (and actually be convicted of a felony) of your spouse, heirs, beneficiaries under wills, trusts or insurance policies or a joint tenant with right of survivorship and you will loose your interest in the property which you shared with the dearly departed. There are several exceptions to the general rule; see the text of the statute at the link provided above. To all of our friends who are lawyers, real estate and insurance professionals, please take note and prepare for the education of your clients.

Top 10 Reasons to go to ICSC Law Conference

Scott Kadish — Tue, 25 Oct 2011 11:44:58 -0600

The ICSC Law Conference is being held this week in Phoenix. It alternates from the West to the East each year - this year it's out West. It is a great conference for any attorney practicing in the retail real estate industry. Here are the top 10 reasons for attending:

10. There is a seminar on negotiating skills, which is really a seminar on how to listen - a skill we all need to improve.

9. It is always at a beautiful resort.

8. Arnold Golden Gregory has a party. So Abe Schear is buying you drinks.

7. There are seminars on insurance coverage in retail leases. I firmly believe that if you really understand how insurance and indemnity work together in a lease, you can win every issue.

6. Easy way to socialize with clients.

5. There is always a great featured speaker. Might be a nationally known celebrity, or an insightful national commentator.

4. Most opposing attorneys will be there and so you can negotiate face to face on pending leases (while not being pressured to turn around a draft immediately since everyone understands you are at ICSC and thus unable to do so).

3. You get CLE - lots of it.

2. There are small interactive seminars where you will learn useful information.

1. And the number one reason to attend is that you can meet in person opposing attorneys with whom you are doing leases. It is then much harder for that attorney to be obnoxious and difficult after you have met them face to face.

It really is the chance to meet people you are working with in person in a relaxed setting that is the biggest benefit.

Hope to see you there !

Southern Title Insurance Corp. Ceases Issuing New Policies

Jodi Rich — Wed, 12 Oct 2011 12:36:19 -0600

Southern Title Insurance Corp. is suspending issuing new policies as of September 15, 2011. In a press release, it cited a higher than usual number of claims arising from policies issued from 2005 to 2008. The agents which issued those policies are no longer associated with Southern Title. The company also cited "a substantial recent agent defalcation".

Southern Title is an underwriter of title insurance policies. The press release stresses that Southern Title remains solvent and that there are sufficient funds to pay claims of current policyholders. However, if you have a transaction where Southern Title is acting as the title company or has been included in the purchase agreement as the escrow agent and/or title company, the parties should agree to use an alternative agent and underwriter.

Ohio's Public Construction Reform to Take Effect, In Part, September 28, 2011

Jesse Lipcius — Tue, 27 Sep 2011 10:51:08 -0600

The Ohio Legislature passed House Bill 153 on May 5, 2011. H.B. 153—a budget bill—which includes significant changes for Ohio’s public construction projects. Some changes will become effective on September 28, 2011, but others are forecast to become effective in early 2012. As such, we will have to wait a while longer to experience the full effect of the public construction reform.

The following is a sampling of impending changes to public construction works in Ohio:

(1) Prevailing Wage Law (effective September 28, 2011):

These adjustments to Ohio’s prevailing wage law will take effect on September 28, 2011:

Threshold for prevailing wage application to new construction rises from $78,258 to $125,000.00;

Threshold for prevailing wage application to renovation, reconstruction, remodeling, enlargement, repair, or painting work rises from $23,447.00 to $38,000; and

Implementation of a “safe harbor” from liability for a contractor found to have underpaid prevailing wage, if the contractor makes full restitution and each violation is no more than $1,000.00 per employee.

(2) New Options for Construction Delivery (forecast to become effective in early 2012):

One aspect of the reform will allow Public Authorities in Ohio to utilize one of several construction delivery systems for Public Improvements. In addition to Ohio’s classic “multiple prime” public contracting, under which the public authority awards several contracts directly to heavy trade contractors, Public Authorities will now have the option to construct a Public Improvement under any of the following construction delivery systems: (1) Construction Manager at Risk; (2) Design-Build Firm; (3) Design-Assist Firm; or (4) General Contractor.

(3) Pre-qualification Criteria (forecast to become effective in early 2012):

The Ohio Department of Administrative Services, State Architect’s Office, is currently drafting “prequalification criteria” that will be required of subcontractors before they may work on a Public Improvement. Once the criteria are established and approved by the State Attorney General’s office, we should begin to experience Public Authorities’ implementation of the new construction delivery options.

(4) Bonding Requirements (forecast to become effective in early 2012):

H.B. 153 will also impact bonding requirements for Ohio’s public construction projects. The first draft of the new bonding regulations was circulated the week of September 12, 2011. The proposed regulations called for the Construction Manager at Risk, Design-Build Firm, Design-Assist Firm, General Contractor, or Multiple Prime Contractors to procure performance and payment bonds for projects under $20 Million. For projects over $20 Million, however, bonding could be passed down to subcontractors.

Change the Locks !!!!

Brad Kaplan — Tue, 06 Sep 2011 09:24:34 -0600

The Illinois General Assembly has recently amended the Landlord and Tenant Act to add a new requirement for landlords: when a unit changes over to a new tenant the locks must be changed or rekeyed. This applies to dwelling units only. The Act is not applicable for dwelling units in a building of 4 units or less when the owner occupies one of the units. Failure to comply will make the landlord strictly liable for all resulting damages from theft suffered by the tenant. See the Act for specifics.

Financing Renewable Energy: Protect the Planet, Boost your ROI

Greg Stein — Tue, 30 Aug 2011 09:20:52 -0600

Protecting this planet’s natural resources for future generations is a moral obligation; unfortunately, moral obligations do not pay the bills. Coal is a nonrenewable resource that causes pollution. But it’s cheap. Renewable energy is often a more expensive alternative to using coal, oil, or natural gas to produce energy. Recognizing that renewable energy must be financially viable for individuals and businesses to shift away from nonrenewable sources, the Federal Government has bridged the financial gap by implementing a 30% tax credit for renewable energy projects. As an additional incentive, for 2011 only, installers can opt for a grant instead of a tax credit, and the Federal Government will simply cut a check to the installer for the eligible expenses. Eligible projects include solar power, wind energy, biomass, among other types of renewable energy.Coupling the renewable energy tax credit with other federal and state incentives, people have the opportunity to dramatically reduce the break-even period for renewable energy equipment and increase the profit potential. One example is new market tax credit, which offers installers the opportunity to obtain an additional 39% tax credit. Not all projects are eligible for both credits, but utilizing them together for eligible projects will substantially improve an installer’s return on investment. Because of these benefits, tax laws play an important role in financing renewable energy projects.

Renewable energy projects pay for themselves in a couple of ways. First, the projects will produce “free” energy for the user. Once the equipment is in place, the only cost for the energy will be maintenance expenses to keep it in good repair. Alternatively, installers that do not want to use the renewable energy can enter into Power Purchase Agreements (PPA) with other users for the sale of the renewable energy. An example of this scenario is an entity that owns solar panels leasing roof space to install the solar panels and then selling the energy produced by the solar panels to the owner of the building pursuant to a PPA. Since PPAs often last from five to fifteen years, they create the equivalent of an annuity for the installer.

Second, renewable energy produces an intangible, transferable benefit called a Renewable Energy Credit (REC). A REC represents the environmental benefits of 1 megawatt hour of electricity that can be sold to Ohio utilities and service companies, which can satisfy their legal requirement to produce certain amounts of renewable energy by purchasing RECs. RECs are thus a second source of revenue from renewable energy projects.

While many people recognize the value of renewable energy, cost remains an important consideration in choosing a source of electricity. Tax credits are a powerful tool to enable people to have the best of both worlds: higher profits and a healthier planet.

The Best Real Estate Advice a Small Business Will Ever Receive

John Weber — Mon, 08 Aug 2011 05:44:22 -0600

I may be over-selling this post a bit, but not by much. There’s no doubt for most small businesses and start-ups that the first, and perhaps only, real estate transaction the firm will enter into is a commercial lease. Whether it is for a retail store, manufacturing or studio space, or a restaurant, there are a few things the small business owner should keep in mind while reviewing that first lease.

There is no such thing as a form lease. In all likelihood the Landlord will present you with a lease, pre-printed with your business name and other details inserted, and say it’s his typical form lease. Do not hear the word “form” and assume you can’t negotiate. No doubt the landlord presents the same lease to all prospective tenants – but you know your business, the landlord doesn’t. Read every provision as if it’s open for discussion, and keep in mind the particular needs of your business that are likely not reflected in the form.

“Base Rent” isn’t the only rent. The term that will rightfully be most heavily negotiated in your lease is the base rent – i.e. the fixed amount you pay each month. Even if you get a great deal on base rent, the lease in totality may not be a good business value based on other charges. First, most commercial leases will be “triple net,” a fancy way of saying that the tenant is also responsible for taxes, insurance and operating charges. The most flexible of these are the operating charges. Make sure you’re not being charged for expenses that don’t benefit your space, and that you pay a proportionate amount to other tenants if the space is in a multi-tenant center. Also keep an eye out for “percentage rent.” In leases with percentage rent provisions, the tenant will pay a percentage of its revenue over a certain dollar amount to the landlord. This isn’t necessarily bad for the tenant, as it provides a mutual incentive for landlord and tenant to want the business to succeed, and it may be coupled with a lower base rent. Percentage rent provisions must be reviewed with care though.

Notice the notices. Once you sign your lease and move in, keep the lease in a place where it’s easy to reference. Consider drafting a quick lease summary, possibly with the assistance of your attorney, which reminds you of critical dates and costs under the lease. Many sections of the lease will have requirements for the tenant to give notice to the landlord. For example, if you have the option of renewing your lease a notice will undoubtedly be required, sometimes as much as a year in advance of lease expiration. The tenant must follow the notice requirements precisely to avoid forfeiting its right to any option periods.

Of course these brief provisions are not the only things to keep in mind when reviewing your small business’s first lease. It’s always advisable to make the small investment to have your attorney review the lease before signing. But by keeping the above advice in mind you can avoid some of the most common leasing mistakes made by small businesses.

Ohio Historic Tax Credit Program Renewed in Budget Bill

John Weber — Mon, 01 Aug 2011 05:48:13 -0600

Ohio’s legislature recently approved, and Governor Kasich signed, a fiscal year 2012-2013 budget that includes a renewal of the Ohio Historic Preservation Tax Credit Program(the “Program”) for coming years in perpetuity. The new budget provides for annual credits to eligible projects worth up to $60 million, which matches prior years’ funding allowances. Several modifications to the Program promise to make it more appealing to eligible building owners. For the first time, foreign and domestic insurance companies can take advantage of the Program, and projects may now be completed in “phases.” Also, whereas ODOD was previously required to rescind approval to projects that fail to move forward within 18 months of approval, it now has discretion over whether to sustain the project despite such delays.

Certain aspects of project approval and oversight are revamped under the new budget. Once rules are adopted by the Ohio Department of Development, applicant projects will be required to go through a cost-benefit analysis that will determine whether the project will result in a net revenue gain in state and local taxes once it is placed in service. Any project expenditure over $200,000 must also be certified by an accountant.

The core Program details and benefits, however, remain unchanged. The Program provides a tax credit equal to 25 percent of “qualified rehabilitation expenditures,” up to a maximum of $5 million per project, to owners of certain historic buildings. The expenditures generally include construction for the building’s structure and interior that meets the U.S. Secretary of the Interior’s historic rehabilitation standards. To qualify as an eligible historic property, a building must either be (1) listed in the National Register of Historic Places; (2) a local landmark designated by a certified local government; or (3) located in a registered historic district.

Eligible owners interested in using the Ohio Historic Preservation Tax Credit should stay tuned for ODOD’s announcement of the next application period.

Green Leasing Unveiled - Part II

John Weber — Mon, 25 Jul 2011 05:47:12 -0600

In Part I of our series on the particulars of Green Leasing, we discussed Lease Term and Operating Expenses. Now we turn to a robust area for implementing sustainable processes between Landlords and Tenants:

Interior Alterations and Repairs

A typical commercial lease will have two separate sections, one on maintenance and repairs, and one on tenant improvements. The green leasing concern is the same in each – what requirements or incentives can be inserted in the Lease to assure that any changes to the premises live up to the parties’ expectations surrounding sustainability and energy efficiency?

First, the lease must deal with the minor, day-to-day changes that after move-in are typically the responsibility of the tenant. The perfect example here is lighting. As the landlord, does your third party rating agency require that you maintain certain forms of lighting? If you’re LEED-certified, it likely does. LEED for Commercial Interiors awards points for the percent reduction in lighting power below certain standards. If the tenant were to insert lighting that was not motion sensitive, for example, your lighting power reduction would be reduced and your LEED level of certification jeopardized. A simple insertion in the appropriate lease section requiring tenant to comply with landlord’s sustainability practices and any third-party rating system can give landlord some control of tenant’s actions in this area.

Second are those more major renovations undertaken by a tenant. Here, the lease needs to assure landlord and tenant cooperate and communicate to either (a) maintain any sustainable systems or third party ratings already employed for the project; or (b) for an initial build-out, agree on a level of sustainability or certification that is reasonable and desirable for each party. One major concern at this level is the contractors employed by tenant – a green lease should spell out that any professional engaged for tenant’s work must be LEED qualified (or a similar certification assuring the contractor is familiar with sustainable design). The lease may go so far as to specify the specific level of LEED certification to be sought for the interior design, although such a section would need sufficient caveats and waivers to assure neither party was accepting undue risk if the desired certification was not achieved.

Gunfire Leaving Your Property? You Might be a Nuisance

John Weber — Tue, 19 Jul 2011 12:53:26 -0600

Ohio’s Twelfth District Court of Appeals issued an interesting opinion earlier this year that wove together issues of statutory interpretation, expert testimony, property rights and nuisance. The end result? If you have bullets flying off your property, you might be strictly liable for nuisance.

Before the court in Batelle Memorial Inst. v. Big Darby Creek was a landowner – Batelle Memorial Institute – that claimed gunfire from an adjacent shooting range was flying onto its property endangering employees and visitors. Batelle sought, and was granted, a preliminary injunction in the trial court.

One interesting issue on appeal was whether a Batelle employee could not only testify as to his first-hand knowledge of the gunfire, but also offer his opinion as to where the gunfire originated from based on bullets found on Batelle’s property. Normally such opinion is reserved for expert testimony – but Batelle was in luck. Batelle is a research facility that, in part, researches national security and “ordnances.” The employee’s testimony was admitted by the trial court, and upheld on this appeal, as being “helpful in determining the point of origin of that particular bullet.”

On the fundamental issue -- whether the trial court properly granted an injunction against the shooting range’s alleged nuisance (bullets flying onto the neighbor’s property) – the Court again ruled in Batelle’s favor. The nuisance finding required that the shooting range failed to exercise “due care” in preventing gunfire from leaving its property. The trial court referred to an Ohio Administrative Code section governing shooting ranges, that states shooting ranges should substantially comply with NRA safety guidelines. Those NRA safety guidelines, in turn, state that all projectiles must be confined to the shooting range property. Thus, the shooting range was “negligent” for the bullets leaving its property, regardless of how or why they left, and regardless of any precautions taken by the shooting range. The court’s incorporation of the NRA manual essentially converted nuisance to a strict liability offense, more along the lines of trespass.

A very apropos case if you happen to own a shooting range: Make sure bullets don’t leave your property, because you can be negligent regardless of how extensive your precautions. Outside the shooting range world, it’s simply an interesting example of how common law and statutes can interplay to create an unexpected result.