More Charges Anticipated in Las Vegas HOA Scam
February 28, 2013 —
CDJ STAFFWith almost forty people already charged in the conspiracy to take over Las Vegas homeowners associations in order to profit from construction defect claims, more charges are likely to come, according to an article in the Las Vegas Review Journal. The article also notes that the trial against Leon Benzer will involve millions of pages of documents. It is alleged that Benzer found straw purchasers for condominiums in order to control homeowner boards. Benzer’s firm, Silver Lining Construction, would then receive contracts to repair construction defects.
The Justice Department will be seeking restitution for the victims, which may total $25 million. Four individuals with connections to the conspiracy have died since investigations began. At least three of these deaths were suicides, and included Nancy Quon, who with Benzer are thought to be the main figures in the scam.
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Julie Firestone & Francois Ecclesiaste Recognized as 2023 MSBA North Star Lawyers
July 15, 2024 —
Lewis Brisbois NewsroomMinneapolis, Minn. (June 11, 2024) - Minneapolis Partners Julie Firestone and Francois Ecclesiaste were recently named to the Minnesota State Bar Association (MSBA) 2023 North Star Lawyers list, which recognizes attorneys who provide pro bono service to people of low income at no fee.
All attorneys who were recognized by MSBA provided 50 hours or more of pro bono service to low-income Minnesotans last year. MSBA has a long-standing dedication to advancing the Bars’ pro bono efforts through training, recruiting, and sharing pro bono stories in the community.
“Lewis Brisbois has a long-standing commitment to serving our local communities, including through our pro bono practice, and we are proud of our partners who exemplify this core value of our Firm,” expressed Michelle Gilboe, Managing Partner of the Minneapolis office.
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Lewis Brisbois
Fraud, the VCPA and Construction Contracts
November 26, 2014 —
Christopher G. Hill – Construction Law MusingsI’ve discussed the economic loss rule here at Musings on several occasions. The economic loss rule basically states that where one party assumes a duty based in contract or agreement, the Virginia courts will not allow a claim for breach of that duty to go forward as anything but a contract claim. This doctrine makes fraud claims nearly, though not absolutely, impossible to maintain in a construction context. In a majority of instances, fraud and construction contracts are very much like oil and water, leaving parties to fight it out over the terms of a particular contract despite actions by one party or the other that non-lawyers would clearly see as fraud.
However, a recent case decided by the Virginia Supreme Court gives at least some hope to those who are seemingly fooled into entering a contract that they would not other wise have entered into. In Philip Abi-Najm, et. al, v Concord Condominium, LLC, several condominium purchasers sued Concord under for breach of contract, breach of the Virginia Consumer Protection Act (VCPA) and for fraud in the inducement based upon flooring that Concord installed that was far from the quality stated in the purchase contract. Based upon these facts, the Court looked at two questions: 1. Did a statement in the contract between Concord and the condo buyers create a situation in which the merger doctrine barred the breach of contract claim, and 2. Did the economic loss rule bar the VCPA and fraud claims?
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
Everybody Is Going to End Up Paying for Texas' Climate Crisis
March 29, 2021 —
David R Baker & Mark Chediak - BloombergFallout from last month’s deadly deep freeze in Texas has quietly spread to people living hundreds of miles away. Minnesota utilities have warned that monthly heating bills could spike by $400, after the crisis jacked up natural gas prices across the country. Xcel Energy’s Colorado customers could face a $7.50 per month surcharge for the next two years.
This is a subtle demonstration of the way Americans already share the collective financial burden of climate change, even if we don’t realize it. The national bill for global warming is here, and it’s rising.
Perhaps it’s easier to see this dynamic playing out beyond February’s Texas cold snap. That disaster left dozens dead, stranded millions in dark homes, and sent a shockwave of higher gas prices across the nation. But since there remains scientific uncertainty over the role of global warming, let’s examine two other calamities for which the climate link is clearer: wildfires and tropical storms.
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David R Baker & Mark Chediak, Bloomberg
A Compilation of Quirky Insurance Claims
August 13, 2014 —
Beverley BevenFlorez-CDJ STAFFProperty Casualty 360 showcased five “nutty claims stories” based upon recollections by several insurance professionals.
Number four, subtitled, “The Case of the Soaked Survivalists,” described a claim by an elderly couple who “made a $350,000 water-damage claim after heavy rains and an inadequate sump pump ruined what they described as thousands of ‘valuable items’ in their storage area.” However, a claims adjuster discovered during the investigation that the area in question was actually a bomb shelter built during the Cold War era, and the so-called valuable items were actually “soap, toothpaste, canned goods, and more.” The insurer ended up settling for about $200,000.
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Washington’s Court of Appeals Protects Contracting Parties’ Rights to Define the Terms of their Indemnity Agreements
March 19, 2024 —
Margarita Kutsin - Ahlers Cressman & Sleight PLLCIt has long been the law in Washington that contracting parties are free to draft contractual indemnity agreements to allocate risk arising from performance of the work, and Courts will generally enforce those agreements as written. This well-settled principle was recently reaffirmed in King County v. CPM Development Corp., dba ICON Materials[1] a decision from Division I of the Washington Court of Appeals, wherein one party to an indemnity agreement attempted to evade its contractual obligations by arguing that certain common law indemnity principles supersede the written terms. This appeal followed a multi-week jury trial from which the client and Ahlers Cressman and Sleight legal team, including Lindsay Watkins, Klien Hilliard, and Christina Granquist, obtained a seven-figure judgment in the client’s favor, including an award of all attorneys’ fees and costs.
ICON was the general contractor on a Vashon Island Highway Pavement project for King County. Part of the work on the project involved hauling away and disposing of ground milled asphalt (the “millings”) at King County-approved sites. ICON and D&R Excavating Inc., (“D&R”) executed a subcontract for D&R to perform that work. The subcontract incorporated the contract between ICON and King County, including the obligation to stockpile millings only at approved sites. D&R, however, did not obtain the requisite approvals from King County, and placed the millings at various sites on the Island, including locations that King County explicitly rejected.
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Margarita Kutsin, Ahlers Cressman & Sleight PLLCMs. Kutsin may be contacted at
margarita.kutsin@acslawyers.com
The Condo Conundrum: 10 Reasons Why There's a 'For Sale' Shortage in Seattle
December 20, 2017 —
Dave Suggs - CDJ STAFFSeattle Washington is experiencing a shortage of in-city condos. Of the 27,000 units of new housing being built in downtown Seattle, 94 percent will be rentals. As housing prices are rising in the US’s fastest-growing large city, the median home price is $660,000. Dean Jones of the Seattle Magazine reports on why consumers consider condos, but home developers don’t in his article “The Condo Conundrum: 10 Reasons Why There's a 'For Sale' Shortage in Seattle.”
Reason 1, condominiums don’t always offer high returns and can be riskier for the home developer. Reason 2, the Washington State Condo Act “overprotects” buyers of condos with over-the-top warranties that makes everyone in the industry afraid to work with condos. Reason 3, the cost of condo building is increased because of the risk of defect litigation. Reason 4, condo presale buyers are not required to deposit a percentage to invest in a new development and before closing could decide to walk away. Reason 5, there is a lot of interest in apartment buildings from investment groups.
Reason 6, investors whose goal is to own “trophy” assets in rising markets can’t wait the years it takes developers to plan and construct a new multistory community. Reason 7, since rent prices have risen 50 percent on average in the last 7 years, it’s profitable to be a landlord. Reason 8, the millennials who live and work in this tech oriented region prefer to rent because of living through the rise and fall of the housing market. Reason 9, the costs is rising each year to deliver new projects. Reason 10, high-rise zoning was adopted 2 years before the recession, so just as condo development was gearing up, apartment building took over.
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NJ Condo Construction Defect Case Dismissed over Statute of Limitations
June 11, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to an article by Matthew D. Stockwell of the firm Pillsbury Winthrop Shaw Pittman, LLP published in Lexology, “a trial court in Bergen County, New Jersey dismissed a condominium association's construction defect claims against several construction entities for failure to comply with the applicable statute of limitations.”
Stockwell stated that the “aftermath will be interesting to follow, because the trial court stripped away some of the protection that New Jersey's discovery rule affords to property owners who become aware of latent defects well after a project is substantially completed.”
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