Fairfield Connecticut Building Expert Directory

Coverage Article - To Settle or Not To Settle?

September 20, 2017 — Tred R. Eyerly - Insurance Law Hawaii
My colleagues Rina Carmel, Karin Aldama and I authored an article entitled, "To Settle or Not to Settle? Bad-Faith Implications in Resolving Underlying Actions." The article appears in the current edition of Coverage, published by the Insurance Coverage Litigation Committee of the ABA. The article is here. The article addresses the obstacles faced when settling liability claims. The insurer and insured may have fundamental disagreements on whether to settle or how much to pay in settlement. Should the insured contribute to the settlement? Whether the insurer should seek from the policyholder, or the policyholder offers to make, a settlement contribution presents thorny issues, including whether such a contribution can convert an excess demand into a demand within limits—which, in turn, affects the standard for evaluating the insurer’s response to the third-party demand. On the other hand, the policy holder may not want to settle and set a bad precedent. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

What is a Subordination Agreement?

May 06, 2019 — Bremer Whyte Brown & O'Meara LLP
Put simply, a subordination agreement is a legal agreement which establishes one debt as ranking behind another debt in the priority for collecting repayment from a debtor. It is an arrangement that alters the lien position. Without a subordination clause, loans take chronological priority which means that a deed of trust recorded first will be considered senior to all deeds of trusts recorded after. As such, the oldest loan becomes the primary loan, with first call on any proceeds from a sale of a property. However, a subordination agreement acknowledges that one party’s claim or interest is inferior to that of another party in the event that the borrowing entity liquidates its assets. Further, shareholders are subordinate to all creditors. The junior debt is referred to as a “subordinated debt”, and the debt which has a higher claim to any assets is the senior debt. Often, the borrower does not have enough funds to pay all debts, and lower priority debts may receive little or no repayment. For example, if a business has $400,000 in senior debt, $100,000 in subordinated debt, and a total asset value of $420,000, upon liquidation of the company, only the senior debtholder will be paid in full. The remaining $20,000 will be distributed among the subordinated debtholders. Subordinated debts are, therefore, riskier and lenders will require a higher interest rate as compensation. Read the court decision
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Reprinted courtesy of Bremer Whyte Brown & O'Meara LLP

Architect Sues School District

November 20, 2013 — CDJ STAFF
SFL+A Architects is suing the Marlboro County, South Carolina School District over $690,000 that the architect claims is owed to it by the school district. The firm did design work for the Blenheim Elementary Middle School, which opened in January. The architectural firm contends that the school district refused to pay for anything outside of basic services and failed to pay the full amount on those either. Read the court decision
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Homebuilders Leading U.S. Consumer Stocks: EcoPulse

February 14, 2014 — Anna-Louise Jackson and Anthony Feld – Bloomberg
Shares of U.S. homebuilders are leading consumer discretionary stocks as the new home market is poised to rebound faster than other cyclical purchases this year. The Standard & Poor’s Supercomposite Homebuilding Index -- made up of Toll Brothers Inc. (TOL), NVR Inc. and nine others -- has risen 20 percent since Nov. 11. The S&P 500 GICS Consumer Discretionary Sector Index -- which includes Lennar Corp. (LEN), PulteGroup Inc. (PHM), D.R. Horton Inc. and 81 other companies such as Home Depot Inc. and Lowe’s Cos. -- is up 1.9 percent during the same period. This follows about 10 months when homebuilders lagged behind by 45 percentage points. Shares of companies that construct new residences are a source of relative strength in what’s proven to be a “more difficult market” this year, as the S&P 500 slid almost 6 percent in less than three weeks, said Michael Shaoul, chairman and chief executive officer of Marketfield Asset Management LLC in New York, which has more than $20 billion in assets. The recent rally in homebuilders suggests “a very important transition of leadership within the consumer discretionary sector” is underway, benefiting this segment of the broader cyclical group, he said. Ms. Jackson may be contacted at ajackson36@bloomberg.net; Mr. Feld may be contacted at afeld2@bloomberg.net Read the court decision
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Reprinted courtesy of Anna-Louise Jackson and Anthony Feld, Bloomberg

Condominiums and Homeowners Associations Remain Popular Housing Choices for U-S Homeowners

July 11, 2022 — Community Associations Institute
Falls Church, Va., July 06, 2022 (GLOBE NEWSWIRE) -- Maintenance-free, safety, and cleanliness are top features that make community associations a popular choice and lifestyle for millions of Americans. According to results from the 2022 Homeowner Satisfaction Survey, the overwhelming majority (89%) of homeowners and condominium association residents rate their overall experience of living in a community association as "very good" or "good" (67%), or neutral (22%). At a time when community matters most, the majority (87%) said they knew their home was part of a community association and nearly half (45%) said the association made them more interested in the home. Eighty-seven percent of respondents believe that their governing board "absolutely" or "for the most part" serves the best interest of the community. More than half of residents (68%) believe that rules in their communities protect and enhance property values. Results from almost identical national surveys conducted in 2005, 2007, 2009, 2012, 2014, 2016, 2018, 2020, and 2022 are strikingly consistent. The online survey of 1,507 homeowners and condominium association members nationwide with oversampling was conducted in in four states: Illinois, New York, North Carolina and Washington. About Community Associations Institute Since 1973, Community Associations Institute (CAI) has been the leading provider of resources and information for homeowners, volunteer board leaders, professional managers, and business professionals in the more than 355,000 homeowners associations, condominiums, and housing cooperatives in the United States and millions of communities worldwide. With more than 43,000 members, CAI works in partnership with 36 legislative action committees and 63 affiliated chapters within the U.S., Canada, South Africa, and the United Arab Emirates as well as with housing leaders in several other countries, including Australia, Spain, and the United Kingdom. A global nonprofit 501(c)(6) organization, CAI is the foremost authority in community association management, governance, education, and advocacy. Our mission is to inspire professionalism, effective leadership, and responsible citizenship—ideals reflected in community associations that are preferred places to call home. Visit us at www.caionline.org, and follow us on Twitter and Facebook @CAISocial. Read the court decision
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Were Quake Standards Illegally Altered for PG&E Nuclear Power Plant?

October 29, 2014 — Beverley BevenFlorez-CDJ STAFF
An environmental group has brought a lawsuit alleging that “[f]ederal regulators secretly and illegally revised the license for California’s last nuclear power facility — PG&E’s Diablo Canyon — to mask the aging plant’s vulnerability to earthquakes,” according to SF Gate. Friends of the Earth’s “suit claims that the Nuclear Regulatory Commission and Pacific Gas and Electric Co. last year changed a key element of the plant’s license related to seismic safety without allowing public input as required by law — or even notifying the public at all.” However, spokesman Blair Jones claimed that “Friends of the Earth continues to mischaracterize the facts regarding seismic safety at Diablo Canyon. The facts are Diablo Canyon was built with earthquake safety at the forefront, is a seismically safe facility, and is in compliance with NRC licensing requirements.” Read the court decision
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Home Prices Up in Metro Regions

October 30, 2013 — CDJ STAFF
Housing prices in the largest metro regions beat expectations, rising 12.8% in August as compared to a year before. Analysts were expecting weaker increases; instead these have been the fastest increases in seven years. The metropolitan area with the largest increase was Las Vegas, where houses increased in price by 29.2%. Three California regions — San Francisco, Los Angeles, and San Diego — also saw increases of greater than 20%. Read the court decision
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Quick Note: Attorney’s Fees on Attorney’s Fees

June 13, 2022 — David Adelstein - Florida Construction Legal Updates
In a recent case, the appellate court held that the attorney’s fees provision in the contract was NOT broad enough to entitle the prevailing party to recover attorney’s fees for litigating the amount of attorney’s fees. This is known as “fees on fees” which is when you can recover your prevailing party attorney’s fees when you are fighting over the quantum that should be awarded to you as the prevailing party. The attorney’s fees provision at-issue stated: “In any lawsuit to enforce the Lease or under applicable law, the party in whose favor a judgment or decree has been rendered may recover its reasonable court costs including attorney’s fees from the non-prevailing party.” Language similar to this language can be found in many contracts as a prevailing party attorney’s fees provision. However, this provision was NOT broad enough to recover “fees on fees.” As explained in this article, if this is a consideration, you can negotiate or include this provision into your construction contract by expanding the scope of the prevailing party attorney’s fees provision to clarify that it entitles the prevailing party to recover attorney’s fees in litigating the amount of attorney’s fees. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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