Unfinished Building Projects Litter Miami
November 18, 2011 —
CDJ STAFFBuildings born in ambitious development plans that were never brought to completion form a grim reminder of the building bust in Miami, according to an article in the Miami Herald. One project started in 2007 as a residential project, later there were hopes to develop it as a hotel. These plans are ten months old with no work done.
Another project was projected as a 30-story office and commercial tower. Four were built before the project was abandoned. The article describes the site as “squalid.” Another project completed the planned 17 stories, but no work has been done beyond constructing the shell. Once planned as luxury condos, the owner owes more than $30,000 in property taxes.
Each of the three sites profiled in the Miami Herald have become dumping grounds for trash. The building skeletons have also become damaged by the elements. Some abandoned projects have been taken over by homeless people. Businesses near the abandoned properties have been hurt. The buildings also represent failed obligations to subcontractors who have put liens on the properties for work they performed but were never paid for.
Read the full story…
Read the court decisionRead the full story...Reprinted courtesy of
Crowdfunding Comes to Manhattan’s World Trade Center
January 28, 2015 —
David M. Levitt – BloombergGot $5,000? You can invest in the 3 World Trade Center skyscraper under construction in lower Manhattan.
Fundrise, a real estate crowdfunding business, is inviting individual investors to put as little as $5,000 into bonds backing the 80-story tower, according to a statement e-mailed by Joshua Greenwald, a spokesman for the Washington-based company. The total cost for the Richard Rogers-designed building is projected to be $2 billion.
“We think the 3 World Trade Center investment offering is proof of the power of crowdfunding at work,” Dan Miller, co-founder of Fundrise, said in the statement. “We are proud to be able to give more people a chance to invest in this important iconic asset.”
Read the court decisionRead the full story...Reprinted courtesy of
David M. Levitt, BloombergMr. Levitt may be contacted at
dlevitt@bloomberg.net
Coverage For Advertising Injury Barred by Prior Publication Exclusion
July 01, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe Ninth Circuit held that a claim for advertising injury was properly denied under the prior publication exclusion. Street Surfing, LLC v. Great Am. E&S Ins. Co., 2014 U.S. App. LEXIS 10737 (9th Cir. June 10, 2014).
Street Surfing began selling a two-wheeled, inline skateboard called the "Wave" in December 2004. By 2007, Street Surfing also sold and advertised accessories for the Wave, such as "Lime Green Street Surfing Wheels for The Wave," and the "New Ultimate Street Surfer Wheel Set."
Rhyn Noll, who owned the registered trademark "Streetsurfer," sued Street Surfing in June 2008, claiming trademark infringement, unfair competition and unfair trade practices. Street Surfing had known that Noll owned the "Streetsurfer" trademark since early 2005. In September 2008, Street Surfing submitted a claim for coverage to Great American and tendered Noll's complaint.
Read the court decisionRead the full story...Reprinted courtesy of
Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Deducting 2018 Real Property Taxes Prepaid in 2017 Comes with Caveats
January 04, 2018 —
William Hussey – White and WilliamsMany clients and friends have inquired about accelerating the payment of their 2018 real property taxes as a result of the recent enactment of the federal Tax Cuts and Jobs Act. Pursuant to that Act, the deduction for state and local income, real property and other taxes will be capped at $10,000 in tax years 2018 through 2025. The Act, moreover, specifically disallows a deduction in 2017 for 2018 state and local income taxes that are prepaid before year-end.
The Act was not clear on whether a prepayment of 2018 real property taxes would be deductible in 2017. For certain taxpayers that are not subject to the alternative minimum tax, a prepayment of those 2018 real property taxes might be of current benefit to them.
Yesterday, the IRS issued an advisory to taxpayers outlining which real property tax prepayments will be deductible in 2017 and which are not. The text of that advisory, together with the illustrative examples, is set out below for your consideration.
IR-2017-210, DEC. 27, 2017
WASHINGTON - The Internal Revenue Service advised tax professionals and taxpayers today that pre-paying 2018 state and local real property taxes in 2017 may be tax deductible under certain circumstances.
The IRS has received a number of questions from the tax community concerning the deductibility of prepaid real property taxes. In general, whether a taxpayer is allowed a deduction for the prepayment of state or local real property taxes in 2017 depends on whether the taxpayer makes the payment in 2017 and the real property taxes are assessed prior to 2018. A prepayment of anticipated real property taxes that have not been assessed prior to 2018 are not deductible in 2017. State or local law determines whether and when a property tax is assessed, which is generally when the taxpayer becomes liable for the property tax imposed.
The following examples illustrate these points.
Example 1: Assume County A assesses property tax on July 1, 2017 for the period July 1, 2017 – June 30, 2018. On July 31, 2017, County A sends notices to residents notifying them of the assessment and billing the property tax in two installments with the first installment due Sept. 30, 2017 and the second installment due Jan. 31, 2018. Assuming taxpayer has paid the first installment in 2017, the taxpayer may choose to pay the second installment on Dec. 31, 2017, and may claim a deduction for this prepayment on the taxpayer’s 2017 return.
Example 2: County B also assesses and bills its residents for property taxes on July 1, 2017, for the period July 1, 2017 – June 30, 2018. County B intends to make the usual assessment in July 2018 for the period July 1, 2018 – June 30, 2019. However, because county residents wish to prepay their 2018-2019 property taxes in 2017, County B has revised its computer systems to accept prepayment of property taxes for the 2018-2019 property tax year. Taxpayers who prepay their 2018-2019 property taxes in 2017 will not be allowed to deduct the prepayment on their federal tax returns because the county will not assess the property tax for the 2018-2019 tax year until July 1, 2018.
The IRS reminds taxpayers that a number of provisions remain available this week that could affect 2017 tax bills. Time remains to make charitable donations. See IR-17-191 for more information. The deadline to make contributions for individual retirement accounts - which can be used by some taxpayers on 2017 tax returns - is the April 2018 tax deadline.
IRS.gov has more information on these and other provisions to help taxpayers prepare for the upcoming filing season.
Read the court decisionRead the full story...Reprinted courtesy of
William Hussey, White and WilliamsMr. Hussey may be contacted at
husseyw@whiteandwilliams.com
New Case Law Alert: Licensed General Contractors Cannot Sue Owners to Recover Funds for Work Performed by An Unlicensed Subcontractor
May 30, 2022 —
Michele A. Ellison & Samantha R. Riggen - Gibbs GidenThe opinion in Kim v. TWA Construction, Inc. (2022 Cal. App. LEXIS 412) issued by the Court of Appeal of California Sixth Appellate District, on May 13, 2022, makes it clear that a properly licensed general contractor cannot bring an action for compensation from an owner for work performed by an unlicensed subcontractor.
California licensing law has long made explicit that an unlicensed contractor cannot bring or maintain any action to collect or recover compensation for work that contractor performed unless they were duly licensed at all times during the performance of that work. This new ruling extends the scope of this restriction to licensed contractors who hired unlicensed subcontractors.
The Underlying Dispute
The case involved a dispute between property owners and their former general contractor and its principal (collectively “TWA”). The property owners hired TWA to construct a home, and during the early stages of the project, TWA hired an unlicensed subcontractor to perform tree trimming services and to remove a large eucalyptus tree. The subcontractor partially removed the eucalyptus tree, but was stopped by a neighbor, and it was discovered that the tree was partly located on the neighbor’s property. The neighbor brought suit against the property owners, and eventually TWA, for the damage. The property owners subsequently filed a cross-complaint against TWA, and TWA in turn filed a cross-complaint against the property owners.
Reprinted courtesy of
Michele A. Ellison, Gibbs Giden and
Samantha R. Riggen, Gibbs Giden
Ms. Ellison may be contacted at mellison@gibbsgiden.com
Ms. Riggen may be contacted at sriggen@gibbsgiden.com
Read the court decisionRead the full story...Reprinted courtesy of
Construction Litigation Roundup: “The New Empty Chair.”
June 04, 2024 —
Daniel Lund III - LexologyIn a unanimous opinion, the United States Supreme Court ruled that cases in litigation in federal court but which are determined to be governed by the Federal Arbitration Act should be stayed pending arbitration, not dismissed.
Traditionally, some federal circuits treated the text of 9 U.S.C. §3 – which speaks in terms of a stay of a matter filed in court but referred to arbitration (“…shall on application of one of the parties stay the trial of the action until such arbitration has been had in accordance with the terms of the agreement…”) – as discretionary, dismissing suits when all of the claims brought in the court were referred to arbitration.
In the case, the plaintiffs sued in Arizona state court on labor law violations, and the case was removed to federal court. When the defendant moved to compel arbitration and to dismiss, the plaintiffs “conceded that all of their claims were arbitrable.” Nonetheless, the plaintiffs requested a stay of the case, which the district court refused, dismissing the case without prejudice.
Read the court decisionRead the full story...Reprinted courtesy of
Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
Withdrawal Liability? Read your CBA
July 10, 2018 —
Wally Zimolong – Supplemental Conditions Withdrawal liability is a huge issue facing unionized employers. According to Bloomberg, 93% of the Top 200 largest pension plans are underfunded by a combined $382 billion. Contractors that withdraw from a multi-employer pension plan can face hundreds of thousands or millions of dollars in assessed withdrawal liability. However, employers may be able to avoid that liability, plus the legal and consulting fees to fight it, by simply reading their collective bargaining agreement.
Read the court decisionRead the full story...Reprinted courtesy of
Wally Zimolong, Zimolong LLCMr. Zimolong may be contacted at
wally@zimolonglaw.com
North Carolina Supreme Court Addresses “Trigger of Coverage,” Allocation and Exhaustion-Related Issues Arising Out of Benzene-Related Claims
January 04, 2023 —
White and Williams LLPOn December 16, 2022, the North Carolina Supreme Court decided Radiator Specialty Co. v. Arrowood Indem. Co., 2022 N.C. LEXIS 1122 (Dec. 16, 2022), in which it addressed coverage issues arising out of claims by individuals alleging injury from exposure to benzene contained in the insured’s products. Affirming in part and reversing in part the intermediate appellate court’s decision, the court held: (1) an “exposure trigger” applied; (2) defense and indemnity costs were subject to pro-rata allocation; and (3) vertical exhaustion applied to the duty to defend under certain umbrella policies. Two justices concurred in part and dissented in part.
I. Background
In Radiator Specialty, the insured (RSC) was named in hundreds of underlying suits arising from individual plaintiffs’ alleged exposure to benzene contained in its products. Between 1971 and 2012, RSC was insured under primary, umbrella and excess liability policies issued by various insurers. In 2013, RSC sued the insurers in North Carolina state court, seeking coverage for approximately $45 million in defense and indemnity costs incurred for the underlying claims. In 2016, the trial court decided motions for summary judgment on a number of coverage issues. Following a bench trial in 2018, the trial court entered final judgment, which required the insurers to reimburse $1.8 million of RSC’s past costs. The rulings were appealed to the North Carolina Court of Appeals, which issued a decision in 2020. In 2021, the North Carolina Supreme Court granted RSC’s and certain insurers’ petitions for discretionary review of the Court of Appeals’ decision.
Read the court decisionRead the full story...Reprinted courtesy of
White and Williams LLP