FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

SEC Approves New Securitization Risk Retention Rule with Broad Exception for Qualified Residential Mortgages

November 26, 2014 — Neil P. Casey & Lori S. Smith – White and Williams LLP
The Securities and Exchange Commission (SEC) and five other federal agencies recently approved a joint rule (the “Risk Retention Rule”) mandating that sponsors of certain types of securitizations retain a minimum level of credit risk exposure in those transactions and prohibiting such sponsors from transferring or hedging against that retained credit risk.[i]The final Risk Retention Rule will be effective one year after its publication in the Federal Register for securitizations of residential mortgages, and two years after publication for securitizations of all other asset types. The SEC vote was 3-2, with sharp dissents from Commissioners Gallagher and Piwowar concluding that the adopting agencies had missed a prime opportunity to rein in risky mortgage lending practices that had precipitated the 2008 financial crisis. Background Following the meltdown of the securitization markets in 2007 (particularly subprime residential mortgage-backed securities), and the resulting global financial crisis, the Dodd-Frank Act mandated that the U.S. federal banking, securities and housing agencies adopt and implement rules to require sponsors of most new securitizations to retain not less than five percent of the credit risk of any assets that the securitizer, through the issuance of an asset-backed security, transfers, sells or conveys to a third party. It was thought that requiring securitization sponsors to keep “skin in the game” would align the interests of the sponsors with the interests of investors and thereby incentivize the sponsors to ensure the quality of the assets underlying the securitization through appropriate due diligence and underwriting procedures when selecting assets for securitization. Although the Dodd-Frank Act explicitly exempted securitizations of certain types of mortgage loans called “qualified residential mortgages” (or “QRMs”) from this risk retention requirement, it invited the rulemaking agencies to define that key term, provided that their definition could be no broader than the definition of “qualified mortgage”adopted by the Consumer Financial Protection Bureau (CFPB) pursuant to the Truth in Lending Act.[ii] In considering how to define QRM, the rulemaking agencies were directed by the Dodd-Frank Act to take into consideration “underwriting and product features that historical loan performance data indicate result in a lower risk of default.”[iii] Reprinted courtesy of Neil P. Casey, White and Williams LLP and Lori S. Smith, White and Williams LLP Mr. Casey may be contacted at caseyn@whiteandwilliams.com; Ms. Smith may be contacted at smithl@whiteandwilliams.com Read the court decision
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Concerns Over Unstable Tappan Zee Bridge Push Back Opening of New NY Bridge's Second Span

October 02, 2018 — The New York Daily News - Engineering News-Record
Sept. 08 --Big bridge, big scissors, big problems. A day after an elaborate ribbon-cutting ceremony, the grand opening of the second span of the new Gov. Mario M. Cuomo bridge was postponed over concerns that the remains of the "destabilized" and "dangerous" Tappan Zee Bridge could collapse. Read the court decision
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Reprinted courtesy of Engineering News-Record
ENR may be contacted at ENR.com@bnpmedia.com

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“But it’s 2021!” Service of Motion to Vacate Via Email Found Insufficient by the Eleventh Circuit

June 21, 2021 — Justin K. Fortescue - White and Williams
While we are all getting used to the “new normal” of working remotely and relying on emails for almost all communications, a recent decision from the United States Court of Appeals for the Eleventh Circuit provides arbitration practitioners with a stark reminder – the “notice” requirements of the Federal Arbitration Act (FAA) will be strictly enforced and providing notice of a motion to vacate via email may not qualify as proper service. In O'Neal Constructors, LLC v. DRT Am., LLC, 991 F.3d 1376 (11th Cir. 2021), O’Neal Constructors, LLC (O’Neal) and DRT America (DRT) entered into a contract containing an arbitration provision. Following a dispute, the parties went to arbitration and, on January 7, 2019, the panel issued an award requiring DRT to pay O’Neal a total of $1,415,193. The amount awarded to O’Neal consisted of two parts: $765,102 for the underlying contract dispute and $650,090 for reimbursement of O’Neal’s attorneys’ fees. While DRT paid O’Neal the first portion of the award, DRT refused to pay the portion that related to O’Neal’s attorneys’ fees. On April 4, 2019, as a result of DRT’s refusal to pay O’Neal’s attorneys’ fees, O’Neal filed a motion to confirm the award in Georgia state court (which was subsequently removed to the Northern District of Georgia). The next day, in a separate action, DRT filed a motion to vacate the attorneys’ fees portion of the award and, that same night, DRT’s counsel emailed O’Neal’s counsel a “courtesy copy” of DRT’s memorandum in support of the motion to vacate. A few weeks later, on April 30, 2019 (i.e., more than three months after the award was issued), DRT served O’Neal (via U.S. Marshall) with a copy of the motion to vacate. Read the court decision
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Reprinted courtesy of Justin Fortescue, White and Williams
Mr. Fortescue may be contacted at fortescuej@whiteandwilliams.com

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Plaintiffs In Construction Defect Cases to Recover For Emotional Damages?

March 16, 2011 — CDJ STAFF

A recent post to the Markusson, Green, Jarvis Blog reports on an important appeals decision which promises to impact construction defect litigation in Colorado.



The post provides analysis on the recovery of inconvenience damages. The focus of the piece is centered on Hildebrand v. New Vista Homes II, LLC, 08CA2645, 2010 WL 4492356 (Colo. Ct. App. Nov. 10, 2010), wherein it was held that " the plain language of Construction Defect Action Reform Act permits recovery of damages for inconvenience, and that the trial court did not err by allowing inconvenience damages to go to the jury".



According to the MGJ Blog "The Hildebrand decision is important because it provides Construction Defect Plaintiffs with a foothold for collecting emotional damages. While several questions of law remain as to who or under exactly what circumstances a Plaintiff may recover these types of damages, the Hildebrand case has clearly set forth that emotional damages may be considered as part of actual damages pursuant to CDARA."



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Duty To Defend Construction Defect Case Affirmed, Duty to Indemnify Reversed In Part

May 07, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The Eleventh Circuit affirmed the district court's finding of a duty to defend, but reversed, in part, the insurer's duty to indemnify. Carithers v. Mid-Continent Cas. Co., 2015 U.S. App. LEXIS 5540 (11th Cir. April 7, 2015). After discovering a number of defects in their home, the Carithers sued their homebuilder, Cronk Duch Miller & Associates. Cronk Duch's insurer, Mid-Continent Casualty Company, refused to defend.The parties entered into a consent judgment for $90,000 in favor of the Carithers. Cronk Duch then assigned to the Carithers the right to collect the judgment from Mid-Continent. The Carithers then sued Mid-Continent. Florida law applied. Mid-Continent has issued four policies to Cronk Duch from March 2005 to October 2008. The parties filed cross-motions for summary judgment on the duty to defend issue. The underlying complaint alleged that the defects could not have been discovered until 2010, after the last policy period. The district court rejected Mid-Continent's argument that property damage occurred when it was discovered or when it reasonably could have been discovered. Therefore, summary judgment on the duty to defend was granted to the Carithers. 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

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Florida Governor Bans Foreign Citizens From Buying Land in Florida

May 29, 2023 — Michael Gnesin - Lewis Brisbois
Ft. Lauderdale, Fla. (May 19, 2023) - Florida Governor Ron DeSantis recently signed a bill prohibiting Chinese citizens who are not U.S. citizens or permanent residents from purchasing any residential or commercial land or farmland in Florida. Senate Bill 264, titled “Interests of Foreign Countries,” will prohibit Chinese nationals from buying land unless they are American citizens or permanent residents. The bill also imposes certain restrictions on Chinese citizens – and others, including Russians and Venezuelans – with non-tourist visas when it comes to buying land near a military base in Florida. For example, and in an exception to the new law, Chinese citizens with non-tourist visas would be limited to buying fewer than two acres of land that is at least five miles away from any military institutions. Senate Bill 264 reads in pertinent part:

…A foreign principal may not directly or indirectly own, have a controlling interest in, or acquire by purchase, grant, devise, or descent agricultural land or any interest, except a de minimis indirect interest, in such land in this state…. …A foreign principal may not directly or indirectly own, or have a controlling interest in, or acquire by purchase, grant, devise, or descent any interest, except a de minimis indirect interest, in real property on or within 10 miles of any military installation or critical infrastructure facility in this state…

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Reprinted courtesy of Michael Gnesin, Lewis Brisbois
Mr. Gnesin may be contacted at Michael.Gnesin@lewisbrisbois.com

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Alleged Serious Defects at Hanford Nuclear Waste Treatment Plant

August 26, 2015 — Beverley BevenFlorez-CDJ STAFF
According to the Los Angeles Times, “A team of nuclear waste experts has found hundreds of serious defects at an Energy Department plant designed to turn millions of gallons of highly radioactive sludge into more stable solid glass at the former weapons facility in Hanford, Wash.” The report from 2014 was leaked, and stated that the “partially built facility is riddled with 362 ‘significant design vulnerabilities’ that could affect safety and future operations.” Thirty-seven experts led by two senior managers created the report. The Los Angeles Times reported that the report findings “are significant because the plant is part of the Energy Department’s 2013 initiative to fix earlier problems that stalled construction of other parts of the treatment system at Hanford, the site of the nation’s worst radioactive contamination.” Read the court decision
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Pollution Exclusion Prevents Coverage for Injury Caused by Insulation

March 30, 2016 — Tred R. Eyerly – Insurance Law Hawaii
In a per curiam decision, the Fifth Circuit affirmed the district court's holding that the pollution exclusion barred coverage for bodily injury caused by the insured's insulation. Evanston Ins. Co. v. Lapolla Industries, Inc., 2015 U.S. App. LEXIS 22552 (5th Cir. Dec. 23, 2015). The homeowners' contractors installed spray polyurethane foam (SPF) insulation as part of a renovation project in the home. Lapolla manufactured the SPF. Shortly after the insulation was installed, the homeowners smelled strong odors and suffered respiratory distress, causing them to leave the home. The homeowners sued the contractor and various subcontractors for negligence and breach of contract. A third party complaint was filed against Lapolla. The homeowners also amended their complaint to assert a products-liability claim against Lapolla. 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

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