severability

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severability

the rule of construction of contracts that allows a court to ignore a part of a contract that would render it in some way defective and to read instead what is left. It has been applied to restrictive covenants where, if the words are capable of being so read, the court will ignore a severe restriction and allow a lesser restriction. It also applies in cases involving ROMALPA CLAUSES where certain words might render the clause wholly inoperative, the court can, again only if the words are capable of sustaining such a reading, allow the plaintiff some lesser power to trace the goods or their proceeds.

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(10) However, the Fourth Circuit took a weaker position on the issue, calling the two savings clauses "similar." (11)

Third Circuit rejects preemption under CAA, and opens door to common law tort claims

the CWA's two savings clauses did not speak directly to the issue

Saving preemption in the Clean Air Act: climate change, state common law, and plaintiffs without a remedy

The mechanism to determine the allocation between donors and donees did not operate to take property back and was a valid adjustment, not an impermissible savings clause, the court held.

IRS won't follow Wandry

In 1986, the IRS issued a revenue ruling (21) addressing impermissible formula clauses in the nature of savings clauses. In the fact pattern of the revenue ruling, A transferred a one-half undivided interest in real property to B.

Formula clauses: adjusting property transfers to eliminate tax

(24) Thus, the court held that the provision was valid under IRCA's savings clause and was not preempted under implied field or conflict preemption.

Chamber of Commerce v. Whiting: why the states are permitted to pass a tidal wave of new state laws so dangerously intertwined with federal immigration law

What about the general savings clauses in the securities acts mentioned above?

The case for rebalancing antitrust and regulation

Of particular importance to fostering innovation and creating incentives for reduced pollution is the preservation of common law regimes through savings clauses and linked floor preemption.

Clean Air Act dynamism and disappointments: lessons for climate legislation to prompt innovation and discourage inertia

(49.) See Garry, supra note 23, at 241 (addressing ambiguous nature of OPA savings clauses).

Constitutional law - First Circuit vacates preemption finding relating to three Massachusetts Oil Spill Prevention Act provisions

Savings clauses are included in documents to prevent an adverse result that otherwise might arise.

Savings clauses

Savings clauses that remove the taint of usury are favored by the law and will be given effect if reasonably possible.

Negotiability of promissory notes in foreclosure cases: Ballast is not luggage

In subsequent cases, courts denied "savings clauses" that provided for a portion of a gift deemed subject to gift tax to revert to the donor.

New life for charitable lids: two recent court victories give formula clauses more power in estate plans

Many states have adopted savings clauses to provide limited liability for LLC members even if the strict formalities of the state statute are not met.