Editor's note: Disclosure -- The recently filed lawsuit names Rob Watson, who chaired the LEED steering committee for its first 12 years and is now executive editor of GreenerBuildings.com, among the defendants.
You had to know this was coming. I even predicted a Lanham Act and Consumer Fraud Act claim would be part of a good green litigation.
Recently, Henry Gifford, public critic of LEED (you may have read his op-eds in the New York Times), filed a class action law suit against the USGBC and its founders personally on behalf of "consumers, taxpayers, building design and construction professionals."
The allegations are essentially fraud and false advertising, an anti-trust claim and a RICO claim thrown in for good measure. His theory is that the USGBC has falsely claimed that its rating system makes buildings save energy, and that building owners have spent more money to have their buildings certified, that professionals have gotten worthless professional credentials and people in general have been duped into thinking LEED has meaning. The complaint can be downloaded here.
There will be a lot written on this suit -- blog posts, client alerts, articles will dissect the wrongness or the rightness of the claims. Real estate and construction lawyers, including me, lit up at the sound of the stamp of the clerk in the Southern District of New York where the case was filed.
My initial take (hey -- I have to get in my fair share of the follow-on publication) is that the case may have merit, but it has a bad plaintiff. Rosa Parks was not the only person to object to segregated buses by refusing to give up their seat. She was chosen by the NAACP because she made a good plaintiff.
The plaintiffs in this case are Gifford, his company, and a resident of the state of Arizona, presumably representing the taxpayer, as nothing is stated in the complaint about his occupation or other way he might have been harmed personally.
I don't think that, as alleged, this suit will survive class certification. In a class action suit, you must consider (among other things) whether the plaintiffs are enough alike so that their claims can be adjudicated together, whether the questions of fact and law are sufficiently similar, and whether the lead plaintiffs adequately represent members of the class.
Here, the plaintiffs are purporting to file suit on behalf of a whole range of plaintiffs with all different harms -- harms to building and design professionals who sought educational certifications, building owners who paid additional money to have their buildings certified and other unspecified "consumers," and taxpayers.
Let's put aside the fact that, as a general proposition, taxpayers do not have standing to sue. There is a commonality problem and a causation problem for the class -- did the USGBC's false statements cause the same type of harm to the same type of plaintiff. Indeed, did the false statements cause any harm at all to these plaintiffs.
Why go through this academic class certification exercise, except to prove to Professor Burbank, the professor of my Advance Civil Procedure Class on Class Actions at the University of Pennsylvania that, despite the fact that I rarely got up for his 8 a.m. class, I did, in fact, learn something?
It matters because the allegations in the suit matter. Is the USGBC engaging in intentional, fraudulent actions? Or was it a good organization seeking to benefit the world by promoting more ecologically friendly building practices? Or a little from column A and a little from Column B.














USGBC should be commended for
USGBC should be commended for moving the building industry forward, helping to create standards, and spending money to advertise to the general public to create demand.
I can't comment on the validity of the lawsuit, but I am very grateful to USGBC, NAHB, RESNET, Green Advantage, BPI, EPA, Green Communities and any other organization that is helping to create healthier, more energy efficient, and longer lasting buildings. The awareness these organizations create among ordinary citizens is good for the U.S. and the world.
Working within green standards is changing the building industry practices, I'd testify to that in court. A "green" building is usually better than one that did not go through the certification process, unless the builder and contractors are already aware of and employing these standards. I especially appreciate the post installation testing process available for further education of the contractors - it is visible proof that what they are doing works or doesn't work.
Pam Pierce
LEED AP
Henry (& others) should have
Henry (& others) should have read the Development of a California Commercial Building Energy Benchmarking Database & Energy Benchmarking In Commercial Office Buildings DOE papers. They said what NBI said before they said it. :)
Presented at the ACEEE 2002 Summer Study on Energy Efficiency in Buildings, August 18-23, 2002, Asilomar Conference Center, Pacific Grove, California, and published in the proceedings.
"Points-Based Rating Systems, including (LEED), do not allow comparisons against other buildings, rather, they provide standards and guidelines to measure how efficient and environmentally friendly a facility is and compared it to best-practice standards."
http://poet.lbl.gov/cal-arch/paper245.pdf
"Statistical distributions of office building EUIs developed from CBECS data can be used for comparing the performance of an individual building to others within its respective census division. Median EUIs are more reliable comparators when it is desired to compare the energy use of a sample of local buildings to CBECS census division statistics. Averages can be strongly influenced by a small number of buildings with excessive individual EUIs. This occurs in the CBECS database and will occur in local sampling of office buildings."
http://www.energy.ca.gov/greenbuilding/documents/background/13-ORNL_COM_...
Did HG ever take the time to
Did HG ever take the time to read the Appendix G standard? Probably not that's for people who go to school..............
11. ENERGY COST BUDGET METHOD
Informative Note: The energy cost budget and the design energy cost calculations are applicable only for determining compliance with this standard. They are not predictions of actual energy consumption or costs of the proposed design after construction. Actual experience will differ from these calculations due to variations such as occupancy, building operation and maintenance, weather, energy use not covered by this standard, changes in energy rates between design of the building and occupancy, and precision of the calculation tool.
From EBN: "Shapiro, assuming
From EBN: "Shapiro, assuming that Gifford has benefited from the green building wave, even questions whether Gifford has even been harmed, as he would have to be to take part in the lawsuit. However, Gifford told EBN that there’s no question about that. “Nobody hires me to fix their buildings,” he said. Though not an engineer, Gifford is respected in energy efficiency circles for his technical knowledge."
My thoughts: He is not a licensed engineer - maybe that is why people don't hire him to fix their buildings. Or maybe it is because he only works on residential buildings, boilers in particular, in New York City.
His claims are based on false pretenses - LEED certification does not guarantee building performance. The energy portion of the certification is based on an energy model which compares the design building against a minimally compliant ASHRAE 90.1 Appendix G building. Energy modeling, which Henry hates, is a comparative tool during the design phase to compare building options based on the drawings, specifications, control sequences, and a fixed set of assumptions about building use. If these assumptions change, especially the operating schedules, and the ultimately do, the model can not stand as a true estimate of the building performance. In the end, it is the building tenants and operators who determine how the building performs.
All that being said, Henry does have one point. There are buildings which consume more energy than the models predicted. And we need to find out why and fix these problems. And the new version of LEED requires actual performance data for several years after construction to ensure the building was built and is operating as designed.