Tuesday, May 24, 2016

Fixing that public benefit corporation shield law

The mayor's displeasure with one project almost led to a really short sighted law.  At least for now it looks like that law won't be quite as bad as it could have been.
The legislation, with a key amendment, is headed to the House floor for a final vote after being approved by the Committee on Civil Law and Procedure.

The original bill attempted to make it more difficult for a losing bidder by requiring the developer to post cash or security to file a lawsuit. The amount would have reached into the tens of millions of dollars for projects like the World Trade Center, which is owned by the New Orleans Building Corp. The requirement -- which would have applied to current and pending lawsuits -- was scratched under an amendment by Committee Chairman Raymond Garofalo.
Anyway, they're still going to court in October. There's a remote possibility that the judge will make them restart the bidding process. But then there's also a remote possibility a sinkhole could just swallow the whole building by then.

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