#Climate Justice Valuations

[collapsedsquid]

I’ll conclude by returning to a theme I brought up earlier: the shrunken time horizon of the US ruling class. The current motley crew looks nothing like the set who planned the post-World War II order. They emerged from—or recruits were assimilated to—an ethnically and socially homogenous WASP aristocracy who felt themselves above quotidian distractions and rank commercial temptations. Of course, it was all in the interest of long-term accumulation under US guidance, but it was all successfully planned and executed (at least until things started slipping some in the 1970s). Now with the US in a long process of imperial decline, our planning elite seems fragmented and lost. You have Republicans criticizing Biden for not having shot down the Chinese balloon quickly enough, and Democrats acting as if it was an act of heroism. Our rulers don’t act like they have any good idea about coping with the rise of China, except with bellicose and one hopes ineffectual gestures, because God knows, we don’t want bellicose gestures to lead to an actual war.

And we have a capitalist class that has apparently given up on the future—incapable of dealing with the climate crisis, a truly dire threat, but also consuming capital rather than investing it. Net investment—net, that is, of depreciation—by both business and government—has been falling relative to GDP for decades. The vast flow of free money and 0% interest rates from the Federal Reserve has been channeled into an impressive set of bubbles: the most extended valuations of stocks in US history, crypto, unicorns, housing. It used to be normal to have one particular asset lead the way in a speculative orgy, whether it was stocks in the late 1990s or housing in the following decade. Now we’ve got multiple and serial bubbles that have only been partly deflated by the Fed’s tightening moves of the last year. And Wall Street is dearly hoping the central bank will reverse those moves in a few months and resume the cheap money flow. The bond vigilantes of the 1980s and 1990s, always on the lookout for an inflation that needs to be crushed, have largely disappeared.

I’ll give the last word to Etienne Balibar, who has diagnosed the affliction precisely. “We realize now that our ruling class is no longer a bourgeoisie in the historical sense of the word. It does not have a project of intellectual hegemony nor an artistic point of honor. It needs (or so it thinks) only cost-benefit analyses, “cognitive” educational programs, and committees of experts. That is why, with the help of the pandemic and the internet revolution, the same ruling class is preparing the demise of the social sciences, humanities and even the theoretical sciences.” The bourgeoisie no longer has any civilizational project, national or otherwise. Live for today, and if the water rises, they can just move inland. Or to their underground bunkers.

post-nationalism

[caintermediatescanner]

The Growth of Impact Investing and its Accounting Challenges

Impact investing has seen significant growth in recent years as more investors, corporations, and governments prioritize generating positive social or environmental outcomes alongside financial returns. With rising global awareness of environmental issues, social justice, and sustainable development, the demand for impact investments has surged. However, the rapid growth of this sector brings unique accounting challenges, especially for Chartered Accountants (CAs) who must navigate the complexities of measuring both financial and non-financial returns. This article delves into the growth of impact investing, the challenges it presents, and how CA students preparing for exams can use CA Entrance Exam Books, Scanner CA Intermediate Books, Scanner CA Foundation Books, and Scanner CA Final Books to stay ahead.

What is Impact Investing?

Impact investing involves directing capital toward ventures that aim to achieve specific social or environmental goals while also generating financial returns. Unlike traditional investments that focus solely on profit maximization, impact investments have a dual mandate: they seek measurable positive impacts, such as reduced carbon emissions, improved healthcare access, or increased educational opportunities.

As global challenges such as climate change, poverty, and healthcare inequality take center stage, impact investing is becoming a key strategy for individuals, institutions, and organizations committed to addressing these issues. The Global Impact Investing Network (GIIN) reports that the impact investing sector is expanding rapidly, attracting billions of dollars globally. In India, the government’s emphasis on sustainable development through initiatives like the National Action Plan on Climate Change (NAPCC) has further fueled interest in this area.

Impact of Impact Investing on Accounting

For Chartered Accountants, the growth of impact investing presents both exciting opportunities and significant challenges. Traditional accounting practices, which are centered around tracking financial performance, must adapt to include non-financial returns—such as social and environmental outcomes. These changes require CAs to rethink how they measure, track, and report on investments.

While financial performance metrics like ROI, net income, and cash flow are straightforward, the non-financial aspects of impact investments—such as social well-being or environmental sustainability—are harder to quantify. For example, a clean energy project might report on the number of households that gained access to electricity, but how does an accountant measure the broader environmental impact or improvements in public health?

Accounting Challenges in Impact Investing

The rise of impact investing brings several accounting challenges for CAs, who must now consider both financial and non-financial metrics when evaluating investments. The primary challenges include:

1. Measuring Social Impact

One of the most significant challenges in impact investing is measuring social and environmental impact. While financial outcomes can be easily quantified, the social returns, such as improvements in education, health, or sustainability, are harder to measure. Chartered Accountants must develop methods and metrics to track these outcomes effectively. For instance, impact measurement could involve metrics such as the number of people lifted out of poverty, the reduction in carbon emissions, or improvements in literacy rates. Developing these methodologies requires expertise and familiarity with frameworks such as the Global Impact Investing Rating System (GIIRS) and the Impact Reporting and Investment Standards (IRIS).

2. Valuation of Impact Investments

Valuation is another key challenge. Traditional valuation models for financial investments focus solely on market value, earnings potential, or future cash flows. However, when it comes to impact investments, CAs must factor in both financial returns and social/environmental outcomes. This makes the valuation process more subjective and complex. Impact investments may require adjustments to traditional valuation methods, incorporating future impact potential or social value into financial models.

3. Standardization of Reporting

Unlike traditional financial reporting, there is no universal standard for impact reporting. Although frameworks like GIIRS and IRIS exist, they are not universally adopted, which complicates the process of ensuring consistency and comparability. Chartered Accountants must stay informed about the various impact reporting standards and frameworks to provide clear, consistent, and transparent reports for investors and stakeholders.

4. Auditing of Impact Investments

Auditing impact investments presents unique challenges. While traditional audits focus on verifying financial data, impact audits require CAs to assess the social or environmental outcomes claimed by the investments. CAs must ensure that the reported impact aligns with actual outcomes, which may require them to employ new auditing techniques and verify non-financial data.

How Chartered Accountants Can Adapt

Given the unique challenges of impact investing, Chartered Accountants must equip themselves with the knowledge and tools necessary to handle these new accounting responsibilities. Here are some ways CAs can stay ahead:

Continuous Learning and Education CAs must stay up to date with the evolving standards and practices in impact investing. For students preparing for the CA exams, CA Entrance Exam Books, Scanner CA Intermediate Books, Scanner CA Foundation Books, and Scanner CA Final Books are essential resources. These books not only cover core accounting principles but also provide insights into emerging topics such as sustainability reporting and impact investing.

Mastering Impact Measurement Frameworks CAs should familiarize themselves with various impact measurement frameworks, including the IRIS (Impact Reporting and Investment Standards) and GIIRS (Global Impact Investing Rating System). These frameworks provide standardized methods for measuring and reporting on social and environmental outcomes, which can help Chartered Accountants in evaluating and reporting on impact investments.

Adapting to New Reporting Standards The lack of standardized reporting frameworks in impact investing means CAs must be adaptable and resourceful in their approach. By leveraging resources like the CA Foundation Scanner and CA Intermediate Scanner, students can gain a solid understanding of current and emerging standards, which will help them navigate the complexities of impact investment reporting in their careers.

Leveraging Technology CAs can also benefit from the growing role of technology in accounting. Tools such as cloud accounting software, data analytics, and artificial intelligence can help streamline the process of measuring and reporting both financial and non-financial outcomes. By incorporating these tools, CAs can ensure that impact investments are properly tracked and reported, making it easier for investors to assess both financial returns and social impact.

Conclusion

The growth of impact investing offers Chartered Accountants exciting opportunities to shape the future of finance, blending traditional financial goals with positive social and environmental outcomes. However, it also presents significant challenges, particularly in measuring and reporting impact. By staying informed through resources like CA Entrance Exam Books, Scanner CA Intermediate Books, Scanner CA Foundation Books, and Scanner CA Final Books, CAs can equip themselves with the knowledge and skills needed to succeed in this evolving field. As the impact investing sector continues to grow, the role of Chartered Accountants in ensuring transparency, accountability, and accurate reporting will only become more crucial, making it a promising and dynamic area for future professionals.

This article integrates the keywords CA Entrance Exam Books, Scanner CA Intermediate Books, Scanner CA Foundation Books, and Scanner CA Final Books while discussing the growth of impact investing and its accounting challenges, offering practical advice for CA students.

[tik4tatthetat]

The State of Professional Sports in the USA: A Complex Landscape

The State of Professional Sports in the USA: A Complex Landscape Professional sports in the USA are a cultural behemoth, a multi-billion dollar industry that captivates millions and shapes the national identity. But beneath the roaring crowds and dazzling displays of athleticism lies a complex landscape, marked by shifting power dynamics, evolving fan engagement, and pressing social issues. A Shifting Power Dynamic: The traditional power structure in professional sports is undergoing a transformation. Athletes are increasingly leveraging their influence and platforms to advocate for social justice, challenge league policies, and demand fair compensation. This shift is fueled by social media, which allows players to connect directly with fans and control their own narratives. LeBron James, for example, has become a powerful voice on issues like racial inequality and voter suppression, while Naomi Osaka's stand on mental health sparked important conversations about athlete well-being. Furthermore, the rise of player empowerment is intertwined with the growing influence of players' unions. Unions are negotiating more favorable contracts, pushing for greater revenue sharing, and playing a crucial role in shaping league policies on issues like drug testing, player safety, and disciplinary action. This evolving power dynamic is redefining the relationship between athletes, leagues, and team owners. The Evolving Fan Experience: The way fans consume professional sports is rapidly changing. Cord-cutting and streaming services are disrupting traditional broadcasting models, forcing leagues to adapt and explore new ways to reach audiences. Social media platforms have become essential tools for fan engagement, providing real-time updates, behind-the-scenes content, and opportunities for interaction with players and teams. Moreover, the rise of esports and gaming is challenging the dominance of traditional sports.  Leagues like the NBA 2K League and the Overwatch League are attracting younger audiences and blurring the lines between physical and digital competition. This trend is forcing established leagues to embrace gaming and explore new forms of entertainment to remain relevant. Social Issues Take Center Stage: Professional sports are increasingly intertwined with social and political issues. Athletes are using their platforms to raise awareness about racial injustice, gender inequality, LGBTQ+ rights, and climate change. Leagues are also taking a more proactive stance on social issues, partnering with organizations to promote diversity and inclusion, and using their influence to advocate for social change. However, navigating these issues is not without challenges. The NFL's handling of Colin Kaepernick's protests highlighted the complexities of balancing free speech and the league's image.  Similarly, debates over transgender athletes' participation in women's sports have sparked controversy and raised questions about fairness and inclusion. The Economic Landscape: The financial landscape of professional sports is a mix of staggering revenue and growing concerns about financial sustainability. Franchise valuations continue to soar, driven by lucrative media deals and global expansion efforts.  However, rising player salaries, the cost of building and maintaining stadiums, and the potential impact of economic downturns pose challenges for team owners and leagues. Furthermore, the increasing commercialization of sports has raised concerns about the influence of sponsors and the potential for conflicts of interest.  The growing popularity of sports betting also presents both opportunities and risks, with leagues grappling with how to regulate this burgeoning industry while protecting the integrity of the game. Looking Ahead: The future of professional sports in the USA is filled with both opportunities and uncertainties.  Leagues and teams that can adapt to the changing media landscape, embrace technological innovation, and engage with fans in new and meaningful ways will be well-positioned for success.  However, they must also navigate complex social issues, address concerns about financial sustainability, and maintain the integrity of the game in the face of growing commercial pressures. The athletes themselves will likely play an even greater role in shaping the future of professional sports.  Their influence and activism will continue to challenge the status quo and push for positive change, both within the sports world and beyond.  As the lines between sports, entertainment, and social activism continue to blur, the state of professional sports in the USA will remain a dynamic and fascinating reflection of American society itself.   tik4tat research team, 2024.                                                                                                                                                                                                                                                                                                 Your Life-Your Future Read the full article

[regencyfx03]

Navigating the Storm: How a Labour Party Win Could Shake Up GBP and Global Financial Markets

The potential victory of the Labour Party in the UK elections has ignited discussions among investors and analysts regarding its implications for the British pound (GBP) and global financial markets. With a different economic policy approach and a vision for the future, a Labour government could significantly impact various sectors. This article, brought to you by Regency FX, explores the potential ramifications of a Labour Party win, focusing on the GBP's performance and broader market dynamics.

Understanding the Labour Party's Economic Agenda

At the heart of the Labour Party's platform is a commitment to social justice, economic equity, and investment in public services. Under the leadership of Keir Starmer, the party has outlined ambitious plans to enhance infrastructure, improve healthcare, and address climate change. These policies prioritize a robust social safety net and public investment, which could transform the UK’s economic landscape.

One significant aspect of Labour's economic agenda is its focus on raising taxes for the wealthiest individuals and corporations while providing relief for lower and middle-income families. This proposed tax shift aims to fund essential public services, stimulate economic growth, and reduce income inequality. Investors will need to closely monitor how these tax policies could affect corporate profits and consumer spending.

Impacts on the GBP

A Labour Party victory could lead to increased volatility in the GBP. Investors often react swiftly to changes in government and policy direction, and the uncertainty surrounding Labour's agenda may trigger fluctuations in the currency. If the market perceives the Labour government's plans as beneficial for economic growth, the GBP may strengthen against other currencies. Conversely, concerns over increased taxation or potential business regulation could weaken the pound.

The Bank of England's response to a Labour government will also be crucial. If the Labour Party's economic policies prompt expectations of inflationary pressure, the central bank may need to adjust interest rates accordingly. An increase in interest rates could support the GBP, making UK assets more attractive to foreign investors. However, if economic growth does not materialize as anticipated, the Bank may face challenges in balancing monetary policy.

Investor Sentiment and Market Reactions

The financial markets thrive on certainty and predictability. The uncertainty surrounding a Labour Party win could lead to a cautious approach among investors, prompting them to reassess their portfolios. Sectors such as real estate, utilities, and renewable energy may experience heightened interest, given Labour's commitment to green energy and infrastructure investment.

Conversely, industries that could be adversely affected by increased taxation or regulatory changes, such as banking and financial services, may see a decline in stock prices. Investor sentiment is likely to shift as market participants evaluate the potential impact of Labour's policies on their respective sectors.

The political landscape's volatility could also result in a flight to safe-haven assets, such as gold and government bonds, as investors seek stability amid uncertainty. These movements can lead to fluctuations in the global financial markets as traders react to the shifting sentiment in the UK.

Global Financial Markets and Cross-Border Implications

A Labour Party win in the UK could have ripple effects across global financial markets. As one of the world's largest economies, changes in UK policy can influence global trade, investment flows, and currency valuations. For instance, a significant shift towards increased public spending and investment in green technologies may encourage other nations to adopt similar policies, impacting international economic relationships.

Additionally, a Labour government could reshape the UK’s relationship with the European Union (EU). If the Labour Party seeks to re-establish closer ties with the EU, it may lead to negotiations on trade agreements that could benefit the UK economy. Enhanced trade relations could bolster investor confidence, leading to increased foreign direct investment.

However, any uncertainty regarding the UK’s post-Brexit trade policies may still weigh on investor sentiment. Traders will be closely monitoring how Labour's policies interact with existing agreements and whether new arrangements will be favorable for both the UK and its trading partners.

Navigating the Financial Landscape Post-Election

As the political landscape shifts, market participants must adopt a proactive approach to navigate the potential changes. Diversifying investment portfolios, closely monitoring economic indicators, and staying informed about Labour's evolving policies will be essential strategies for investors.

Furthermore, keeping an eye on market reactions to Labour's proposed policies will help investors make informed decisions. Engaging with financial experts and utilizing advanced trading tools can also enhance decision-making in a rapidly changing environment.

Conclusion

The prospect of a Labour Party win in the UK has the potential to shake up the GBP and global financial markets. With ambitious economic policies aimed at promoting social justice and public investment, Labour's approach may lead to both opportunities and challenges for investors. Understanding the implications of these changes and adapting strategies accordingly will be crucial in navigating the storm that may follow the election.

As the political landscape evolves, the response from the financial markets will be closely watched. Investors will need to remain agile, leveraging insights from experts like Regency FX to make informed decisions and seize opportunities in an uncertain yet potentially transformative economic environment. The journey ahead may be complex, but with careful navigation, investors can position themselves for success amid the changing tides.

[bouncybrain]

CharcterHub Exploration: Worlds

I briefly mentioned this in the last post about the social zones of the site. Worlds (Story Worlds) are a way to help organize your characters and stories by worlds, and/or by location within that world. This is going to be a lot more helpful if you're more into worldbuilding than character-building. Since I'm only going over this one creation aspect of the site on desktop, you're getting pictures again!

There's a few other things I'll probably go over in other posts, since I wrote this while waiting for events to unlock, so either stay tuned or block the characterhub tag since I use them all on these posts.

Reminder: CharacterHub offers two subscription models that unlock more options during creation and such, but I am not subscribed. These are all the base, free experience.

When you hit the "create" button, you get a lot of options to work with. The second one listed is "Story World" and the one we're going through together.

While I have a lot of OCs, I haven't uploaded enough interconnected ones that need a world to keep track of the worldbuilding (despite my love of worldbuilding), so I'm not going to actually publish one, but I'll walk through all the steps and options here.

First, the creation page:

The full list of options are as follows, verbatim as I can get, in the order of the drop-down list (* marks default):

{General}

Species

Culture

Magic

Location

Economy*

Factions

Climate*

Religion*

{Countries And Continents}

Number Of Continents

Countries And Nations In The World

Relationships Between Countries And Nations

Political Dynamics And Stability

Level Of Urbanization

Aspects Of Popularity Or Pride

Societal Structure And Hierarchy

Climate And Harshness

Natural Resources

Sources Of Energy

Weapons

Physical Anomalies

Faith And Religion

Food

Holidays And Celebrations

Laws And Authority

Systems Of Education

Clothes And Fashion*

Popular Jobs And Forms Of Work

Popular Forms Of Entertainment

Available Technologies And Advancement

{Cultural Identity And Heritage}

Motto

Fun Facts

Genre

Traditions And Rituals

Art And Aesthetics

Fashion And Apparel

Philosophical Schools

{Governance And Social Order}

Ruler

Laws And Authority

Justice System

Public Services And Utilities

Secret Societies

Propaganda And Information Control

Intelligence And Espionage

Guilds And Associations

Colonialism And Expansion

Social Mobility

{Technological And Magical Advancements}

Available Technologies And Advancement

Inventions And Innovations

Technological Constraints

Magic

{Economic And Resource Management}

Economy*

Economy And Trade

Resource Scarcity

Currency And Valuation

Environmental Conservation

{Historical And Temporal Context}

History And Lore

How Time Passes

Timekeeping And Calendars

Exploration And Discovery

Adventure And Quests

{Communication And Information}

Languages And Dialects

Communication Networks

Surveillance And Privacy

{Lifestyle And Social Dynamics}

Popular Jobs And Forms Of Work

Popular Forms Of Entertainment

Recreation And Sports

Tourism

Tourist Appeal

Festivals And Competitions

{Geopolitics And International Relations}

Diplomatic Relations

Relationships Between Countries And Nations

Political Dynamics And Stability

{Science Research And Exploration}

Science And Research

Space And Astronomy

Conflict And Resolution

{Urban And Environmental Planning}

Level Of Urbanization

Transportation Systems

Traffic

Characteristic In World Shape Or Form

To keep this post from also being an absolute fucking monster of a review of the site, I think this is a fantastic idea to have as well! While you can put your characters in folders to separate them, and put worldbuilding on those profiles, having the option to completely separate the universe your characters occupy is useful. Instead of having to go through and tweaking or dumping stuff unrelated directly to each character, you can just... edit the world itself.

I don't know if I'll upload characters who exist in a 'verse that requires worldbuilding to understand well, but if I do, I'll be using this.

Also, the extent of the free options is handy in realizing what you might be missing out on in the worldbuilding you've already done. Using every single one might be a little excessive, in my opinion, but having so many of them is great! One of the hardest parts of worldbuilding is knowing whether you've got enough detail, or if you're missing something in the middle of all your notes, so the clean UI and number of options is great.

I'd recommend CharacterHub on the worlds alone, honestly. And all the stuff in this post, again, is free. (5GB image storage aside.)

[drawingconclusions]

THE TRUMP TRIALS I'm not vying to be Trump's Vice-President pick, but you likely knew I was going to cover this topic anyway. Former President Trump can sometimes be verbally abrasive to many and he often commits several unforced errors, but something about these trials against him seem overtly political to me and many others.

Gregg Jarrett penned an insightful article on Fox News regarding the hush money trial, breaking down how illogical & meritless it is. According to him, Stormy Daniels apparently at one point denied the affair, then turned around and denied that denial! (So does that mean she legitimizes her accusations only when it's convenient?) Also, lawyer Jarrett makes it clear that Non-Disclosure Agreements (a key topic in the case) aren't illegal and whether Trump knew about it or not, it isn't criminal to have knowledge of a "non-crime". Finally, the election in question took place in 2016, and yet D.A. Alvin Bragg accuses Trump of "falsifying" records in 2017, post-election! How in the world does that work?!

And regarding the previous case against Trump brought by New York State Attorney General Letitia James: I don't know whether or not the Trump organization inflated their stated valuations. If you don't already know by now, I'm not a real estate mogul. However, commercial real experts have stated that many companies & businesses supposedly overstate their commercial property valuations. And Fox News stated that the Trump organization even instructed the involved banks to not use their company's valuations! Seems to me there was no intent to defraud there. And yet Letitia James proceeded with the case and Judge Engoron happily decreed a near half-billion penalty!

In March of this year, the New York Post pointed out that NY Attorney General Letitia James served up a lawsuit against major beef producer JBS USA Food Co. Details of the case reveal that her complaint against JBS stems primarily from the left-leaning belief that beef contributes to climate change. It's absolutely unbelievable. So that's why I haven't seen those commercials touting New York as a go-to destination for new businesses anymore! It must be clear to everyone, even the NY tourism board, that any corporation or individual that goes against the "woke" mantra of the moment is doomed to face prosecution or harassment!

According to the well-known phrase, justice is meant to be blind and intended to be applied equally. Justice is not meant to be dished out vindictively to political opponents or used as a means of harassment against those who believe differently or who question the establishment. Whether or not you agree with Trump, whether you despise him or respect him, if we're honest, I think we can all agree that unfortunately we've entered a dangerous phase in America with the Biden administration's indictments against a leading political rival. And what Democrats don't seem to realize is that these haphazard charges are setting alarming precedents that can also be used against them in the future. As I've written before, do we really want to venture down this route as a country?

[oilgasexpwit56]

Oil and Gas Expert Witness

Navigating the Complexities of Oil and Gas Expert Witnesses

In the realm of legal disputes and litigation concerning the oil and gas industry, complexities abound. From environmental concerns to contractual disagreements, navigating the intricacies of this sector requires specialized knowledge and expertise. This is where oil and gas expert witnesses play a pivotal role. Serving as trusted advisors and knowledgeable authorities, these professionals provide critical insights and analysis that can sway legal outcomes and ensure justice is served.

1. The Importance of Expert Witnesses in Oil and Gas Litigation:

Oil and gas litigation often involves highly technical and nuanced matters that are beyond the comprehension of the average layperson or even legal professional. Expert witnesses bridge this gap by offering specialized knowledge and experience that can clarify complex issues for judges and juries. Whether the dispute revolves around drilling operations, environmental compliance, or valuation of assets, these experts provide invaluable insights that help stakeholders make informed decisions.

2. Qualifications and Expertise of Oil and Gas Expert Witnesses:

Effective expert witnesses in the oil and gas industry possess a unique blend of academic credentials, industry experience, and specialized knowledge. Many hold advanced degrees in relevant fields such as petroleum engineering, geology, or environmental science. Additionally, they often have years of hands-on experience working in various capacities within the oil and gas sector, giving them practical insights that cannot be gleaned from textbooks alone.

3. The Role of Oil and Gas Expert Witnesses in Environmental Disputes:

With growing concerns over climate change and environmental sustainability, disputes related to oil and gas operations' environmental impact are becoming increasingly common. Expert witnesses play a crucial role in assessing the environmental implications of drilling activities, pipeline construction, and other operations. By conducting thorough analyses and presenting evidence-based findings, these experts help courts evaluate the extent of environmental harm and determine appropriate remedies.

4. Resolving Contractual Disputes with Expert Witness Testimony:

Contracts are the lifeblood of the oil and gas industry, governing everything from exploration and production rights to royalty payments and asset transfers. When disputes arise over contractual interpretations or breaches, expert witnesses can provide clarity and interpretation of industry standards and practices. Their testimony can shed light on complex contractual language and industry norms, helping parties reach fair and equitable resolutions.

5. Valuation and Financial Matters in Oil and Gas Litigation:

Valuing oil and gas assets is a complex endeavor that requires a deep understanding of geology, engineering, and market dynamics. Expert witnesses specializing in valuation and financial matters play a crucial role in determining the fair market value of oil and gas reserves, production facilities, and exploration projects. Their analyses inform decisions regarding asset acquisitions, divestitures, and investment strategies, ensuring that parties are adequately compensated for their interests.

6. Challenges and Pitfalls in Utilizing Oil and Gas Expert Witnesses:

While expert witnesses can be instrumental in bolstering legal arguments and providing clarity in complex matters, their effectiveness can be undermined by various challenges and pitfalls. These may include biases, conflicts of interest, or insufficient preparation. It is essential for legal teams to carefully vet potential expert witnesses, assess their credibility, and ensure that their testimony withstands scrutiny under cross-examination.

In conclusion, oil and gas expert witnesses play a critical role in resolving legal disputes and ensuring justice in the complex world of the energy industry. Their specialized knowledge, experience, and expertise provide invaluable insights that help stakeholders navigate the complexities of oil and gas litigation. Whether addressing environmental concerns, contractual disputes, or financial matters, these professionals serve as trusted advisors who contribute to fair and equitable outcomes. As the oil and gas industry continues to evolve, the demand for skilled expert witnesses is likely to grow, underscoring their importance in the legal landscape.

[coinnewz]

Binance slashes costs, Ripple ready for US banks and crypto VCs return

The crackdown on crypto firms by the United States Securities and Exchange Commission (SEC) appears to have severely affected Binance’s business. During the past few weeks, the crypto exchange reportedly fired over 1,000 employees and slashed some benefits. According to Binance, the “current market environment and regulatory climate” have caused a decline in profits, suggesting more cuts may be in the works. A spokesperson told Cointelegraph the firm would consider scaling back on “certain products, business units, staff benefits and policies” in response to business and regulatory concerns. Binance has yet to face the courts and the 13 charges brought against it by the SEC, as well as the outcome of an investigation by the U.S. Justice Department targeting its activities and executives. Despite cloudy prospects ahead, Binance is still comfortably the most popular centralized crypto exchange in the world, holding assets worth over $63 billion. A token breakdown by DefiLlama shows that the majority of assets held in Binance include Tether (USDT) (27.55%), Bitcoin (BTC) (26.95%), BNB (BNB) (12.82%), and wrapped Ether (10.08%). In remarks on Binance’s anniversary on July 14, the exchange’s CEO Changpeng Zhao recalled that the company’s journey was “never all smooth sailing.” This week’s Crypto Biz looks at Binance’s ongoing efforts to curb declining profits, Ripple’s expectation that U.S. banks may soon adopt XRP (XRP) and the first signs of venture capital returning to crypto. Ripple CLO says court ruling could encourage banks to adopt XRP Stu Alderoty, chief legal officer of Ripple Labs, believes that U.S.-based banks may turn to XRP for cross-border transactions following a recent court ruling. “Hopefully, this quarter will generate a lot of conversations in the United States with customers, and hopefully, some of those conversations will actually turn into real business,” he said during an interview. With the label of “security” seemingly no longer hanging over XRP, partnerships between Ripple and banks dampened by the SEC lawsuit could find new life. Bank of America had been eyeing the blockchain firm in 2019, and American Express first partnered with Ripple in 2017. #NEW: Chairmen @PatrickMcHenry and @CongressmanGT issue a statement regarding the court ruling in SEC v. Ripple and the need for legislative clarity in the digital asset ecosystem to prevent further uncertainty in our financial markets. Read more https://t.co/y1nITVmHvh pic.twitter.com/tn0dn0BDHd — Financial Services GOP (@FinancialCmte) July 14, 2023 Binance cuts back on employee benefits, citing ‘decline in profit’ Global cryptocurrency exchange Binance is cutting back on certain employee benefits amid reevaluation efforts at the firm. The company reportedly stopped offering reimbursement to employees for certain expenses, including using mobile phones, fitness and working from home. Binance cited the “current market environment and regulatory climate,” which led to a decline in profit, suggesting more cost-cutting measures may be needed. The report follows a massive layoff in June that affected over 1,000 employees in the exchange. Binance and Zhao were both targeted in suits by the SEC for allegedly offering unregistered securities in the United States. Marathon shareholders file lawsuit against company’s top management Crypto mining company Marathon Digital is heading to court over allegations that its CEO Fred Thiel, alongside other top executives, breached fiduciary duties, unjustly enriched themselves and wasted corporate assets. According to the complaint, the company’s management has been downplaying its problems, artificially inflating Marathon’s valuation, receiving excessive compensation, making lucrative insider sales, and receiving unjustifiably elevated bonuses based on false and misleading statements. Polychain Capital, Coinfund raise $350 million for new crypto funds Web3 venture firms are gearing up for new investments in crypto projects as Polychain Capital raised $200 million for a new investment fund and Coinfund secured $152 million for a seed fund. Polychain still intends to raise $400 million in total for the new fund. It currently operates three funds with approximately $2.6 billion in assets under management. As for Coinfund, its CEO Jake Brukhman said the company set a goal of raising $125 million but managed to rake in an additional $27 million due to a resurgence of interest in the industry. The total volume of venture funding for crypto startups has declined by 76% from year-over-year due to the bear market and turbulence in the industry. July is CoinFund’s 8th anniversary, celebrating the journey of @jbrukh @flexthought and team from kitchen table to cap table. We’re thrilled to bolster this milestone with the announcement that CoinFund has closed its $158M Seed IV Fund to back the leaders of the new internet pic.twitter.com/6kwBFuIHiy — CoinFund (@coinfund_io) July 18, 2023 Before you go: Bitcoin rally will lead to “speculative blow-off top” in 2024, Mark Yusko predicts BlackRock’s application for a spot Bitcoin exchange-traded fund has sparked the beginning of a new crypto bull market, which will go parabolic at some point closer to the halving scheduled for April 2024, according to Mark Yusko, the chief investment officer and founder of Morgan Creek Capital. Crypto Biz is your weekly pulse of the business behind blockchain and crypto, delivered directly to your inbox every Thursday. Source link Read the full article

[esgagile]

The Increasing Demand for ESG Investing

As an ESG Consulting in Dubai, Investors are increasingly evaluating companies based on their environmental, social, and governance (ESG) standards and financial performance. ESG investing can help to lower risks and enhance long-term financial stability by encouraging firms to prioritize sustainability and social responsibility. The rise in public awareness of concerns like climate change, social justice, and inequality has contributed to the growth of the ESG investment movement. Positive change could be sparked by ESG investing both within businesses and across industries.

We are an ESG Strategy consultant in Dubai; Increased shareholder activism is one of the critical ways that ESG investing is altering the corporate legal landscape. Investors increasingly leverage their shareholder power to pressure businesses to make changes as ESG issues become more critical to investors. This can take many forms, such as submitting shareholder resolutions, conversing with the company's management, and casting votes on corporate governance matters. Investors use various techniques, such as ESG ratings, to evaluate the ESG performance of companies.

As ESG Reporting consultants in Dubai, these ratings consider things like carbon emissions, labor standards, and board diversity. For instance, MSCI's ESG ratings are intended to be prospective, considering a company's exposure to ESG risks and possibilities. Academic research suggests that companies with strong ESG indicators may have cheaper capital costs, more accessible access to finance, and higher valuations. However, each industry and area have a different relationship between ESG and financial performance. Despite the potential advantages of ESG investment, there are drawbacks and difficulties to consider.

As an ESG Consulting in Dubai, the difficulty of evaluating and comparing ESG performance across firms is one of the significant issues. ESG investment reshapes corporate law by encouraging firms to prioritize sustainability and social responsibility, lowering risks, and fostering long-term financial stability. Even though there are many ESG ratings and data suppliers, an agreed-upon technique still needs to assess how well corporations perform in these areas. Due to this, choosing which businesses to invest in can be challenging for investors. Increased shareholder action is one-way ESG investing is bringing about change.

By submitting shareholder resolutions, speaking with firm management, and participating in corporate governance voting, shareholders leverage their influence to demand reform within corporations. Companies that don't adhere to ESG guidelines face legal problems due to ESG investing. Fines and other legal repercussions may apply if these standards are not met. Investors can assess companies' performance in these areas more effectively with efforts to standardize ESG reporting, such as the Task Force on Climate-related Financial Disclosures (TCFD) framework.

Being an ESG Strategy Consultant in Dubai, the importance of ESG investing is projected to increase over the next few years, making it a significant trend. Companies will be pressured to enhance their ESG policies if investors continue to value sustainability and social responsibility highly. This might result in considerable adjustments to how businesses run, eventually benefiting the economy and the environment. To fully realize the potential advantages of sustainable investing, solving the problems and restrictions associated with ESG investing is vital.

[rjzimmerman]

This is the latest in Senator Ellizabeth’s Warren’s “plan” for climate action and environmental justice. The link is her essay published in Medium. Here’s a summary of all this from the Washington Post:

Sen. Elizabeth Warren (D-Mass.) unveiled her latest climate plan that calls for spending $1 trillion over the next decade on environmental justice, focusing efforts on vulnerable communities most impacted by climate change.

The details: Warren’s plan includes shifting the Council on Environmental Quality to a Council on Climate Action that prioritizes environmental justice. It proposes reversing funding cuts to the Environmental Protection Agency, including to its Civil Rights office and Office of Environmental Justice. The plan also includes a bill — the Climate Risk Disclosure Act — that would “require banks and other companies to disclose their greenhouse gas emissions and price their exposure to climate risk into their valuations, raising public awareness of just how dependent our economy is on fossil fuels.”

The reaction: It generally earned praise from environmentalists, with the Sunrise Movement called it a "bold plan to deliver environmental justice and a just transition while fighting climate change."

[bigyack-com]

DealBook: Exclusive: Airbnb Imagines a ‘Stakeholder’ World

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Airbnb moves beyond shareholders

Brian Chesky, Airbnb’s co-founder and C.E.O., spoke exclusively to Andrew last night about the company’s announcement today that it will think about all “stakeholders” when it comes to corporate governance, not just investors.The move is Mr. Chesky’s take on the Business Roundtable’s recommendations last year that companies consider employees, the environment and more in their business decisions.• Airbnb is planning to hold a “Stakeholder Day.” It would be like a traditional annual shareholder meeting — except that everyone from customers to “hosts” to employees and others will be invited.• It will also change its compensation program, with factors important to stakeholders like progress on guest safety taken into account when bonuses are calculated.“I don’t want to be one of those C.E.O.s to say we’re trying to do all this great stuff, but then we treat board meetings exactly like every other board meeting,” Mr. Chesky told Andrew. He added that he doesn’t think this is particularly radical: “I think this is where the world is going.”The big picture: • Airbnb remains under fire on a number of fronts, including battles with regulators over housing laws, concerns over the safety of its customers and claims of discrimination by hosts. They’re among the struggles that surround the company’s plans to go public this year.• It’s unclear whether investors, as one of many groups of stakeholders, will embrace their diminished stature within Airbnb’s universe.• And it remains to be seen whether the new goals will increase the company’s valuation in its market debut.____________________________Today’s DealBook Briefing was written by Andrew Ross Sorkin in New York and Michael J. de la Merced in London.____________________________

Microsoft’s ambitious climate goal: going “carbon negative”

The tech giant unveiled a response to climate change yesterday that goes beyond offsetting carbon emissions. It wants to erase its entire historical carbon footprint by 2050, a target that no other major company has set before.What the plan involves:• Becoming “carbon negative” by 2030, which means not only ending the emission of carbon into the atmosphere, but also removing it.• Creating a Climate Innovation Fund that will invest $1 billion over the next four years into developing carbon-removal technology, which currently isn’t commercially viable.It goes further than other environmental pledges by Fortune 500 companies. Amazon said last year that it aimed to be carbon neutral by 2040. And PepsiCo announced this week that it wanted to cut its carbon emissions by 20 percent over the next decade. Climate activists hope that such moves will spur other corporations to think just as big.But there’s reason to be skeptical of Microsoft’s pledge. Sue Reid of the environmental nonprofit group Ceres told Reuters that the economics of carbon removal remained murky: “That math is all facing some new uncertainty and vulnerabilities tied to exacerbated climate change impact,” such as more wildfires, she said.Expect this to be a huge topic at the World Economic Forum in Davos, Switzerland, next week. Andrew will be on the ground to give you the inside scoop.

Inside Leon Black’s moneymaking machine

Apollo Global Management is one of Wall Street’s biggest private equity firms, managing over $320 billion in assets. Apollo’s success is due in large part to the strategies of its founder, Leon Black, who gets his close-up in this week’s Bloomberg Businessweek cover story.“Black’s aggressive approach — involving layoffs and slashing benefits — is also among the most profitable,” Caleb Melby and Heather Perlberg of Businessweek write. “Apollo’s flagship private equity fund, which it opened to investors in 2001, has delivered annual returns of 44 percent.”Highlights from Mr. Black’s career include:• Working with Mike Milken on junk bonds, a term Mr. Black still hates because competitors came up with it: “We were never accepted by the Goldmans and the Morgans and the Kidder Peabodys and the First Bostons.”• Investing where others wouldn’t dare. “Everybody else is running for the doors, and we’re backing up the trucks,” Mr. Black told Businessweek.But his biggest problem right now might be his association with Jeffrey Epstein:• The depths of Mr. Black’s financial ties to the late financier are unknown, but he is known to have given $10 million to Mr. Epstein’s charity and persuaded the financier to invest in a friend’s muffler company.• “After Epstein was found dead in his Manhattan jail cell a month later, former Apollo employees joked darkly that his death had made Black’s life easier.”

Why banks should give thanks to Trump

President Trump ribbed a top JPMorgan Chase executive this week when he said her bank should thank him for its stellar earnings. He may have had a point, at least when it comes to his tax cuts, writes Yalman Onaran of Bloomberg.• Savings for America’s top six banks — JPMorgan Chase, Bank of America, Wells Fargo, Citigroup, Goldman Sachs and Morgan Stanley — from the 2017 tax overhaul have now surpassed $32 billion.• The banks “posted earnings this week showing they saved $18 billion in 2019, more than the prior year, as their average effective tax rate fell to 18 percent from 20 percent,” Mr. Onaran writes.• “The six firms posted $120 billion in net income for 2019, inching past 2018’s mark. They had never surpassed $100 billion before the tax cuts.”

Can Alphabet stay in the $1 trillion club?

The parent company of the search giant Google hit $1 trillion in market value yesterday, the fourth tech company to do so. But Alphabet faces challenges to stay at that level:• Regulation. Dai Wakabayashi of the NYT notes that “it faces investigations from Congress, state attorneys general and the Department of Justice,” as well as pressure from other regulators around the world.• New leadership. Alphabet’s co-founders, Larry Page and Sergey Brin, have taken a step back, leaving the company in the hands of Sundar Pichai, who has been criticized as lacking vision.• Shareholder sentiment. Investors are “debating whether the largest internet stocks have gotten too pricey,” Amrith Ramkumar of the WSJ writes.And here’s why it could keep climbing, Mr. Wakabayashi points out: “Google search is the on-ramp to much of the internet.”

Revolving door

Chris Young is stepping down as the chief of the cybersecurity company McAfee to become a senior adviser to TPG, the investment firm. He will be replaced by Peter Leav of BMC Software.George Cheeks, the vice chairman of NBCUniversal Content Studios, reportedly resigned to take a senior role at CBS.James Debney stepped down as the C.E.O. of the parent company of the gun maker Smith & Wesson after the board discovered what it said was nonfinancial misconduct.

The speed read

Deals• The Gap called off plans to spin off its most successful division, Old Navy, and investors cheered. (CNN)• Ant Financial, the corporate sibling of the Alibaba Group of China, is reportedly working with banks to revive its I.P.O. plans. (FT)• M.&A. advisory fees for five of Wall Street’s top banks dropped 5 percent last year, or $558 million. (FT)Politics and policy• President Trump said he would formally nominate Judy Shelton, a longtime critic of the Fed, to the central bank’s board of governors. (NYT)• How the U.S.-China trade deal could change the way international disputes are settled. (WSJ)• The Senate approved the revised North American trade deal known as U.S.M.C.A. by a vote of 89 to 10. (WSJ)• Several Democratic lawmakers said that JPMorgan Chase had not provided enough detail about its efforts to improve diversity and to address complaints about discrimination. (NYT)Tech• Facebook has reportedly called off plans to sell ads in WhatsApp, at least for now. (WSJ)• Fiat Chrysler is teaming up with Foxconn to develop electric vehicles. (TechCrunch)• Pinterest has surpassed Snapchat as the third-most popular social network in the U.S., a new study found. (Search Engine Journal)• Do you really need a smart toilet? (WSJ)Best of the rest• Employees at Barneys are angry that the fashion retailer, now in liquidation, fell short of $4 million in severance payout obligations. (NYT)• The German authorities raided the homes and offices of three people suspected of spying for China. (NYT)• Brace yourself: Here comes Build-a-Bear’s Baby Yoda. (Business Insider)Thanks for reading! We’ll see you next week.We’d love your feedback. Please email thoughts and suggestions to business@nytimes.com. Read the full article

[tik4tatthetat]

The State of Professional Sports in the USA: A Complex Landscape

The State of Professional Sports in the USA: A Complex Landscape Professional sports in the USA are a cultural behemoth, a multi-billion dollar industry that captivates millions and shapes the national identity. But beneath the roaring crowds and dazzling displays of athleticism lies a complex landscape, marked by shifting power dynamics, evolving fan engagement, and pressing social issues. A Shifting Power Dynamic: The traditional power structure in professional sports is undergoing a transformation. Athletes are increasingly leveraging their influence and platforms to advocate for social justice, challenge league policies, and demand fair compensation. This shift is fueled by social media, which allows players to connect directly with fans and control their own narratives. LeBron James, for example, has become a powerful voice on issues like racial inequality and voter suppression, while Naomi Osaka's stand on mental health sparked important conversations about athlete well-being. Furthermore, the rise of player empowerment is intertwined with the growing influence of players' unions. Unions are negotiating more favorable contracts, pushing for greater revenue sharing, and playing a crucial role in shaping league policies on issues like drug testing, player safety, and disciplinary action. This evolving power dynamic is redefining the relationship between athletes, leagues, and team owners. The Evolving Fan Experience: The way fans consume professional sports is rapidly changing. Cord-cutting and streaming services are disrupting traditional broadcasting models, forcing leagues to adapt and explore new ways to reach audiences. Social media platforms have become essential tools for fan engagement, providing real-time updates, behind-the-scenes content, and opportunities for interaction with players and teams. Moreover, the rise of esports and gaming is challenging the dominance of traditional sports.  Leagues like the NBA 2K League and the Overwatch League are attracting younger audiences and blurring the lines between physical and digital competition. This trend is forcing established leagues to embrace gaming and explore new forms of entertainment to remain relevant. Social Issues Take Center Stage: Professional sports are increasingly intertwined with social and political issues. Athletes are using their platforms to raise awareness about racial injustice, gender inequality, LGBTQ+ rights, and climate change. Leagues are also taking a more proactive stance on social issues, partnering with organizations to promote diversity and inclusion, and using their influence to advocate for social change. However, navigating these issues is not without challenges. The NFL's handling of Colin Kaepernick's protests highlighted the complexities of balancing free speech and the league's image.  Similarly, debates over transgender athletes' participation in women's sports have sparked controversy and raised questions about fairness and inclusion. The Economic Landscape: The financial landscape of professional sports is a mix of staggering revenue and growing concerns about financial sustainability. Franchise valuations continue to soar, driven by lucrative media deals and global expansion efforts.  However, rising player salaries, the cost of building and maintaining stadiums, and the potential impact of economic downturns pose challenges for team owners and leagues. Furthermore, the increasing commercialization of sports has raised concerns about the influence of sponsors and the potential for conflicts of interest.  The growing popularity of sports betting also presents both opportunities and risks, with leagues grappling with how to regulate this burgeoning industry while protecting the integrity of the game. Looking Ahead: The future of professional sports in the USA is filled with both opportunities and uncertainties.  Leagues and teams that can adapt to the changing media landscape, embrace technological innovation, and engage with fans in new and meaningful ways will be well-positioned for success.  However, they must also navigate complex social issues, address concerns about financial sustainability, and maintain the integrity of the game in the face of growing commercial pressures. The athletes themselves will likely play an even greater role in shaping the future of professional sports.  Their influence and activism will continue to challenge the status quo and push for positive change, both within the sports world and beyond.  As the lines between sports, entertainment, and social activism continue to blur, the state of professional sports in the USA will remain a dynamic and fascinating reflection of American society itself.   tik4tat research team, 2024.                                                                                                                                                                                                                                                                                                 Your Life-Your Future Read the full article

[w-ht-w]

Article: “Democrats took an unconscionable gamble — and it worked”

During the Republican primary season, Democrats took a big risk: They boosted Trumpist, election-denying candidates over their more moderate opponents.

During the primaries, Democrats spent tens of millions assisting Trumpist fringe candidates in at least 13 races. Seven of those efforts failed, but six succeeded. With Democratic assistance, MAGA candidates won the Republican gubernatorial primaries in Illinois, Maryland and Pennsylvania. (1)

Context: article’s author is a self-described "right-leaning libertarian." (2)

---

Comments on the article:

in the wake of the Democrats' inability to get support from "moderate" Republicans for Electoral count reform. His sense was that you looked at what the non-insane Republicans did in the House and very, very few of them seem willing to stand up and block the nuts -- so if the less extreme candidate wins you still get the crazy investigations and the turn from reasonable policy and the blocking of nominations and so on. That is, at the level of actual results there isn't much to favor the less extreme Republican over the Trumpkin. That makes the strategy seem a lot wiser to me, ... (1)

Choosing your opponent is a valid tactic. (1)

Democrats played to win. And they were right to. At this point in the onset of the GOP's insanity, any increase in their power is a danger to our future. Let this tired example of Democrats being held to higher standards than Republicans also fade with dreams of a "red wave". (1)

In morally evaluating whether an action was right, it’s not just about the means, but also the ends.

It’s like the use of violent protest on Jan 6 vs. BLM. One could argue that the violent means employed by both protesters were wrong, deontologically. In an ideal world, we would never have to use violence and risk lives to achieve the moral outcome we want. One could also argue that the use of violence in both cases is ultimately counterproductive/net-negative to the cause of justice and peace. But even if that were the case, there are varying level of “bad”/negative.

In the case of Jan 6, violence was used as the predominant means, with invalidating election results as the ends. Both the means and the end were wrong, in my view.

In the case of BLM, violence was occasionally used as a means (but it was nowhere near predominant), with drawing attention to the excessive use of police force as the ends. The means were not perfect, but the end was just, in my view.

So here, in the case of Democrats gambling to pick political opponents in the 2022 midterm elections...I may not love the means; I may wish we didn’t have to resort to such methods; but I do believe the end (of electing the party that unanimously abides by the current democratic/election system) was just. In my moral valuation, focusing on large-scale consequences, I believe the Democratic Party’s gamble was a net-positive one. I want to see Biden implement more of his agenda (like the Inflation Reduction Act, the largest ever U.S. federal investment in climate technology). I want the party that predominantly supports LGBTQ+ rights, universal abortion access, raising minimum wage, universal healthcare, improving public education. And opposes the death penalty.

Democrats are criticized for being overly-idealistic. And I don’t understand how to evaluate a party on the basis of actual results, yet. But I’d rather a party has its heart in the right place, its head facing in the right direction, before I evaluate their effectiveness.

In an ideal world, leaders are elected via the merit of their ideas by an informed electorate. It’s good to keep our eyes on that prize, of an ideal world. But we aren’t there yet. To get there, we may have to make some unsavory decisions/sacrifices.

And again, I’m sure Republicans think similarly, to use unsavory means in justifying a perceived worthy/moral end.

The difference is that, currently, on the whole, I don’t agree with their ends. 

1. https://www.washingtonpost.com/opinions/2022/11/09/democrats-cynical-primary-strategy-worked/

2. https://en.wikipedia.org/wiki/Megan_McArdle

[theselauses]

CBD tenant docks rent due Covid; wins relief against forfeiture of option

What happens if a lessee duly exercises its option over a commercial tenancy but the landlord does not respond with any proposal as to market rent and fails to provide to the lessee a new lease as the arrangement requires it to do?

A dispute over a convenience store tenancy in Brisbane’s CBD at the heart of the Cross River Rail redevelopment precinct in Albert Street provides illustrates the dilemma and provides a good example of relief against forfeiture at the margins.

NightOwl Properties entered into a lease at 132 Albert Street Brisbane in October 2010 which contained two 5 year options the first of which was to start in October 2020.

In September 2019 Cross River Rail construction work began within metres of the shopfront and that part of Albert Street was closed to traffic.

In January 2020 – within the option exercise window – NightOwl’s Alan Minshull gave to its landlord Replay, a written notice of exercise of the first option period by email to its director Jon Sophios.

He requested a downwards rental review having regard to “the current retail climate and general market conditions” but made it clear he was open to discussion and requested an early response.

In March 2020 – with the onset of the Covid pandemic – Australia closed its international border and Queensland closed its southern border to interstate residents.

In April 2020 a National Cabinet Mandatory Code of Conduct imposed a set of good faith principles for application to commercial tenancies where tenants’ retail businesses were adversely affected by the “once in a century public health crisis”.

Shortly thereater, NightOwl sent store turnover figures and notified Replay that it proposed to reduce rent payments in line with the reduction in its turnover

The landlord notified it must comply with is lease obligations until any rent relief had been agreed.  NightOwl prided further financial data as requested.

Queensland’s COVID-19 Emergency Response Regulation came into force at the end of May. That regulation required the landlord to “cooperate and act reasonably and in good faith in negotiating a reduction in rent”, ie to provide rent relief whether by way of deferral or waiver but requiring at least half whatever concession was agreed to be waived rather than merely deferred.

Between April and August 2020, NightOwl paid self-assessed reduced rent which Replay accepted.

It resumed paying the full rent and outgoings in September.

On the last day of the original term – still without any acknowledgement of the renewal – NightOwl sent a rental valuation pitching annual market rent at $81,000 plus outgoings.

Disruption by ongoing Cross River Rail construction featured in valuer’s market rent assessment.

Follow-up from NightOwl’s franchising director Craig Turrell and in-house solicitor Libby Fitzgerald failed to secure any response from the landlord or its solicitors.

The tenant then sought to have the market rent determined by the mechanism contained in the lease by inviting Replay to make a selection from the three specialist retail valuers it had nominated to perform the exercise.

On 9 December, the landlord’s solicitors finally responded only to notify that the renewal was refused by reason of NightOwl’s failure to pay full rent during the Covid emergency response period.

“The Lease is not affected by the COVID Regulation,” the solicitors responded and demanded – by way of a Notice to Remedy Breach of Covenant – $58,000 in rent that NightOwl had withheld.

Notwithstanding the tenant promptly paid that sum in full, the landlord still refused to grant a renewal contending that NightOwl’s breaches after giving the option exercise notice in January denied it the additional term.

The dispute came before Justice Thomas Bradley in the Supreme Court at Brisbane.

NightOwl chose not to argue any entitlement for reduced rent under the Covid emergency response regulation and conceded that for the purposes of the contest, it had been in breach by failing to pay in full.

The argument turned on whether by its conduct, the landlord had waived the tenant’s breaches and if not, whether the tenant was entitled to relief against forfeiture of the lease to which it was otherwise entitled pursuant to the option.

A familiar option renewal proviso required that there be no unremedied breach that had not been waived by the landlord at the time the option is exercised “and thereafter prior to the expiry date”.

And another necessitated the lessee to have “at all times during the term strictly observed and performed the provisions of the lease”.

Justice Bradley observed that a landlord who receives and accepts rent from a tenant in breach is usually taken to have waived its right to re-enter for the breach because acceptance of rent is inconsistent with a right to terminate for the earlier failure to pay.

Replay’s acceptance of December 2020 rent was – he ruled – a recognition that the tenancy persisted constituted a waiver of its right to re-enter.

It did not however put the tenant in a position as if there had been no breach and the landlord remained entitled to rely on such breaches as a basis to refuse to grant a new lease.

Neither was its silence is to be taken as a waiver of its right to rely on NightOwl’s breaches to avoid the obligation to grant a new lease or otherwise rely on the option provisos to that end.

Justice Bradley went on to note however that the landlord–tenant relationship is not simply contractual because it involves a grant of a leasehold estate.

“Equity abhors a forfeiture,” he observed. “It is a long-standing practice to do justice between parties by granting relief against forfeiture of leasehold estates where an instrument seems to require strict observance of formalities that, in truth, were included as security to ensure the payment of rent”.

In equity – he explained – a proviso in a lease for re-entry on a failure to pay rent is regarded as merely a security for the rent.

Thus where a landlord can be restored to the position it was in before breach, the tenant is entitled to equitable relief against forfeiture, if the tenant has remedied.

“I reject Replay’s submission that the court is unable to grant equitable relief against the forfeiture of an option in a registered lease where the circumstances would otherwise make relief appropriate.

Because of many factors – NightOwl was a long-standing tenant; the landlord long delayed its responses; it knew the tenant had conducted itself as having validly exercised the option;  the payment of reduced rent was not a “wilful” or grave breach – he adjudged the relief should be granted  even though the landlord’s conduct could not be classed as unconscionable.

“In all the circumstances, it is necessary to intervene to avoid injustice [and] the [option] covenant of the Lease ought to be specifically performed,” he ordered.

Note that NightOwl was ineligible for relief under Property Law Act s 128(4) because that section does not have application to breaches which occur after a lessee gives notice of exercise of an option, prior to the end of the original term.

NightOwl Properties Pty Ltd v Replay Australia Pty Ltd [2022] QSC 204 Bradley J, 30 September 2022

from Blog – QLD Business + Property Lawyers https://qldbusinesspropertylawyers.com.au/blog/cbd-tenant-docks-rent-due-covid-wins-relief-against-forfeiture-of-option/ from QLD Business + Property Lawyers https://qldbusinesspropertylawyersbrisba.tumblr.com/post/698583619595304960