New York State Legislature Reintroduces Bills to Extend Mortgage Recording Tax to Mezzanine Debt and Preferred Equity
March 15, 2021 —
Steven E. Coury & Marissa Levy - White and WilliamsCompanion bills in the New York State Legislature, Assembly Bill No. A3139 and Senate Bill No. S3074, if enacted, would subject mezzanine loans and preferred equity investments to the same recording and taxation requirements placed on mortgages.
The bills were reintroduced last month after similar bills (S7231/A9041) were introduced in the 2019-2020 legislative session. The prior bills died in committee when last year’s legislative session adjourned.
As discussed in our prior alert, the proposed bills would require: (1) a financing statement evidencing any mezzanine debt and/or preferred equity investments related to real property to be filed in the county in which the real property is located and (2) a recording tax, at the same rate as the applicable mortgage recording tax rate (2.80% for commercial mortgages over $500,000 in New York City), to be imposed on the amount of the debt and/or investment at the time the financing statement is filed. The bills contain a limited carve-out for owner-occupied residential cooperatives.
Reprinted courtesy of
Steven E. Coury, White and Williams and
Marissa Levy, White and Williams
Mr. Coury may be contacted at courys@whiteandwilliams.com
Ms. Levy may be contacted at levmp@whiteandwilliams.com
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Fourth Circuit Finds Insurer Reservation of Rights Letters Inadequate to Preserve Coverage Defenses Under South Carolina Law
January 17, 2023 —
Jason Taylor - Traub Lieberman Insurance Law BlogIn Stoneledge at Lake Keowee Owners Ass'n v. Cincinnati Ins. Co., 2022 U.S. App. LEXIS 34292 (D.S.C. Dec. 13, 2022), the Fourth Circuit Court of Appeals addressed the adequacy of reservation of rights letters issued by Builders Mutual Insurance Company (“Builders Mutual”) and Cincinnati Insurance Company (“Cincinnati”) to their insureds, Marick Home Builders, LLC (“Marick”) and Rick Thoennes (“Thoennes”), Marick’s managing member, for an underlying construction defect lawsuit. In short, the Fourth Circuit found that the reservation letters were inadequate to preserve the insurers’ coverage defenses because they did not sufficiently explain the basis of the carriers’ position.
Stoneledge, a homeowners association, managed a community of 80 townhomes on South Carolina’s Lake Keowee. In 2009, Stoneledge brought suit against Marick and Thoennes, among other defendants, alleging construction defects in the townhomes that resulted in water intrusion and other physical damage. Marick and Thoennes held commercial general-liability policies through Cincinnati and Builders Mutual covering, in relevant part, “property damage” as defined by the policies. Builders Mutual issued policies covering the period from January 2004 to October 2007, and Cincinnati issued policies covering the period from April 2008 to April 2012. After Marick notified the insurers of the underlying action, Builders Mutual sent Marick two reservation of rights letters, one in May 2009 and one in July 2009. Cincinnati sent Marick one reservation of rights letter in March 2010.
In March 2014, Stoneledge brought a declaratory-judgment action against Cincinnati seeking coverage for a judgment entered in the underlying action. The insurers removed the case to federal court, and in September 2016, Stoneledge amended its complaint, adding Builders Mutual as a defendant and seeking coverage for additional damages pursuant to a settlement agreement entered into by Stoneledge, Marick, Thoennes. The district court granted Stoneledge's motion for summary judgment, primarily on the ground that the insurers failed to reserve the right to contest coverage. The insurers appealed to the Fourth Circuit, which affirmed.
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Jason Taylor, Traub LiebermanMr. Taylor may be contacted at
jtaylor@tlsslaw.com
Delaware “occurrence” and exclusions j(5) and j(6)
June 10, 2011 —
CDCoverage.comIn Goodville Mut. Cas. Co. v. Baldo, No. 09-338 (D. Del. June 2, 2011), claimants condominium association and unit owners sued project developer Rehoboth and general contractor Capano seeking damages because of moisture penetration property damage to common elements and individual units resulting from construction defects. Rehoboth and Capano filed a third party complaint against insured property manager Baldo alleging that, if Rehoboth and Capano were liable to claimants, Baldo was also liable because of Baldo’s failure to properly manage, maintain, and repair the property
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Reprinted courtesy of CDCoverage.com
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Surfside Condo Collapse Investigators Uncover More Pool Deck Deviations
September 12, 2023 —
James Leggate - Engineering News-RecordThe investigation into the 2021 collapse of the Champlain Towers South condominium in Surfside, Fla., has uncovered more deviations between the as-built conditions of the pool deck and the building’s design. But investigators emphasize their data are still preliminary as they continue to gather and test evidence from the collapse that killed 98 people.
Reprinted courtesy of
James Leggate, Engineering News-Record
Mr. Leggate may be contacted at leggatej@enr.com
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Traub Lieberman Partner Lisa Rolle Obtains Summary Judgment in Favor of Defendant
November 15, 2022 —
Lisa M. Rolle - Traub LiebermanTraub Lieberman Partner Lisa M. Rolle obtained summary judgment in favor of defendant SRI Fire Sprinkler, LLC, a family-owned and operated fire sprinkler company which generally provides fire sprinkler installation, inspection, and maintenance services throughout the Northeast and New England. The judgment was determined pursuant to CPLR 3211(a)(5) on the grounds that Philadelphia Indemnity Insurance Company’s (Plaintiff) negligent construction claim accrued on the date when work was completed at the premises, not on the date of the incident as alleged in the Plaintiff’s complaint. In the underlying subrogation action, the Plaintiff commenced the action in subrogation of its insured, Bet Am Shalom Synagogue (Bet Am), to recover damages in excess of $173,390.86 which it allegedly paid to Bet Am for water damage cleanup and remodeling after certain sprinkler pipes froze and burst in the recently constructed wing of the Westchester synagogue on January 1, 2019 and January 7, 2019. The Plaintiff alleged that its subrogor, Bet Am, sustained interior water damage on the first floor and basement levels of the premises, including the carpets, drywall, insulation, bathroom, kitchen and appliances, dining room, hallways, closets, basement storage rooms and supplies, and basement classrooms.
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Lisa M. Rolle, Traub LiebermanMs. Rolle may be contacted at
lrolle@tlsslaw.com
California Rejects Judgments By Confession Pursuant to Civil Code Section 1132
May 08, 2023 —
Drew M. Jorgenson & Louis "Dutch" Schotemeyer - Newmeyer DillionThe Elimination of Judgment by Confession
Following in the footsteps of Massachusetts and Florida, California recently updated California Code of Civil Procedure section 1132 which renders judgments by confession unenforceable and inadmissible in any superior court, effective January 1, 2023. The bar is not retroactive, so judgments by confession obtained or entered before January 1, 2023 are still valid. Moving forward, consider the following.
What is a Judgment By Confession?
A judgment by confession, also known as a confession of judgment or "cognovit" clause, is a mechanism by which a debtor agrees that a creditor may summarily obtain a legal judgment against that debtor and enforce it in the event of the debtor's breach of contract or default. In other words, it is a private admission by a debtor that they are liable for a debt without the need for a trial, and consequently, agree to forfeit very important rights. Most importantly, parties agreeing to such clauses are waiving rights such as the right to notice of the judgment and the right to assert defenses against the creditor or third party's claims. Historically, without any judicial involvement, these types of out-of-court judgments would be enforceable.
Reprinted courtesy of
Drew M. Jorgenson, Newmeyer Dillion and
Louis "Dutch" Schotemeyer, Newmeyer Dillion
Mr. Jorgenson may be contacted at drew.jorgenson@ndlf.com
Mr. Schotemeyer may be contacted at dutch.schotemeyer@ndlf.com
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Focusing on Design Elements of the 2014 World Cup Stadiums
June 30, 2014 —
Beverley BevenFlorez-CDJ STAFFWhile Garret Murai on his California Construction Law blog admits that the construction of Brazil’s World Cup stadiums has been problematic (construction worker deaths, delays, and cost overruns), he focused on the design work: “…there’s no denying that the venues are stunning, and for a country known for its beauty as well as beauties (think the Girl From Ipanema), dare I say even sexy.”
For instance, Murai described the Estadio do Maracana (constructed in 1950 and renovated in 2013) as looking “a bit like the front of the USS Enterprise.” He goes onto explain how the stadium was originally constructed for the 1950 World Cup, and “famous” attendees include Frank Sinatra and the Pope.
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The Problem With Building a New City From Scratch
May 10, 2022 —
Nolan Gray - BloombergFrom California to Miami and points in between, housing costs in the U.S. are skyrocketing, bringing bidding wars in hot markets and fears of a fresh surge in homelessness as renters scramble for an affordable place to live.
The deepening housing crunch — and the intractable resistance that residents often put up when the prospect of new housing emerges nearby — has led some observers to ask: Why don’t we just make new cities?
“When China needs new places for people to live, they just build a new city,” Nathan J. Robinson recently wrote in Current Affairs, contemplating all the undeveloped land in between California’s costly major urban areas. “They’ve built 600 of them since 1949.”
At first blush, it might seem obvious. But history is full of failed, unfinished or underperforming scratch-built city projects, in California and elsewhere, and more are in the pipeline.
To learn more about how we might best approach building new cities, CityLab talked to a person who’s had a hand in planning a few of them: Alain Bertaud, a fellow at the Marron Institute for Urban Management and a globetrotting former city planner at the World Bank. Our conversation has been edited for length and clarity.
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Nolan Gray, Bloomberg