Everyone Wins When a Foreclosure Sale Generates Excess Proceeds
August 07, 2018 —
Ben Reeves - Snell & Wilmer Real Estate Litigation BlogIntroduction
When a foreclosure sale generates more money than needed to pay off the lien, the excess proceeds usually go first to creditors in the order of their priority, and second to the owner after creditors are paid in full. So, in truth, not everyone wins when a foreclosure sale brings in too much money. Amusingly, in Steinmetz v. Everyone Wins, the court awarded excess sale proceeds to….you guessed it…Everyone Wins, despite the owner’s argument that Arizona’s anti-deficiency statutes barred it from recovering anything.
In addition to supplying a clever title for this post, Steinmetz v. Everyone Wins provides an important analysis of how Arizona’s anti-deficiency statutes, homeowner’s assessment lien statutes, and foreclosure statutes apply when determining who “wins” when it comes to excess sale proceeds.
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Ben Reeves, Snell & WilmerMr. Reeves may be contacted at
breeves@swlaw.com
Georgia Federal Court Holds That Pollution Exclusion Bars Coverage Under Liability Policy for Claims Arising From Discharge of PFAS Into Waterways
December 18, 2022 —
Paul Briganti - White and WilliamsOn December 5, 2022, the U.S. District Court for the District of Georgia held that a total pollution exclusion (TPE) in a CGL policy relieved the insurer of any obligation to defend or indemnify a recycling company in a putative class action alleging PFAS contamination of Georgia waterways. See Grange Ins. Co. v. Cycle-Tex Inc., et al., Order, Civ. A. No. 4:21-cv-00147-AT (N.D. Ga. Dec. 5, 2022). The decision adds to a slowly-developing body of case law addressing coverage issues arising out of PFAS-related claims.
In Grange, the insured, Cycle-Tex, Inc., was the operator of a thermoplastics recycling facility in Dalton, Georgia. Cycle-Tex and other defendants – which included chemical suppliers, carpet manufacturers, intermediaries, the City of Dalton and the Dalton-Whitfield Solid Waste Authority – were named in a putative class action complaint alleging that residents of Dalton had been injured as a result of the defendants’ discharge of PFAS into local waterways. The complaint sought damages for: (1) alleged harm to the residents’ health by virtue of ingesting contaminated water; (2) alleged property damage resulting from the contamination of the public water supply; and (3) the payment of surcharges and heightened water rates as a result of the alleged contamination.
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Paul Briganti, White and WilliamsMr. Briganti may be contacted at
brigantip@whiteandwilliams.com
Remodel Gets Pricey for Town
December 30, 2013 —
CDJ STAFFUsually when home gets remodeled, it’s the homeowners who encounter unexpected expenses, but in Clearwater, Florida, it’s the town. Clearview has spent about $40,000 trying to determine if changes to a home are a “substantial improvement,” and the bill could get bigger, according to TBNweekly.com.
The home in question, that of David and Aileen Blair, is in a flood zone, and city rules would require the alterations to comply with flood drainage-resistance provisions, but only if it is a “substantial improvement.” The Blairs applied for the remodel permit in April 2001, and it was granted more than 10 years later, in July 2011. Work started soon after until the city put a stop to it.
The Blairs sued, claiming that as the city issued the permit, they assumed the plans were approved, and that the partially-completed renovation now diminishes the value of their home. The city has approved an additional $160,000 in outside legal counsel to respond to the Blair’s lawsuit.
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California Enacts New Claims Resolution Process for Public Works Projects
January 19, 2017 —
Garret Murai – California Construction Law BlogIf you’re a public entity or contractor involved in public works construction you should be aware of a new law,
AB 626, which took effect on the first of this year and establishes a new mandatory claims resolution process for disputes on public works projects. Here’s what you need to know:
What is the new law and where is it codified at?
AB 626 added new Public Contract Code Section 9204 that according to the bill’s author, Assemblymember David Chiu of San Francisco, establishes “a claim resolution process applicable to any claim by a contractor in connection with a public works project.”
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Recent Florida Legislative Changes Shorten Both Statute of Limitation ("SOL") and Statute of Repose ("SOR") for Construction Defect Claims
March 19, 2024 —
Holly A. Rice - Saxe Doernberger & Vita, P.C.The Florida Legislature and Governor DeSantis passed Senate Bill 360, effective April 13, 2023, which imposes significant changes to Florida’s statute of limitation (“SOL”) and statute of repose (“SOR”) periods prescribed in Florida Statute § 95.11. In short, the SOL and SOR periods will commence earlier and run earlier, which in effect shortens the time to bring a construction defect claim on both ends of the timeline.1
These changes will have positive impacts for general contractors who may save on insurance premiums with shorter completed operations tails. In other words, the timeframe within which contractors are at risk of being sued for construction-related errors is significantly reduced under the new version of the statute. Owners and developers, on the other hand, may feel that the increased pressure of uncovered construction defects necessitates the filing of lawsuits sooner than they might have otherwise filed. Collectively, all parties involved will certainly have to consider when and how to place their carriers on notice of claims or potential claims and, coupled with Florida’s sweeping changes to fee shifting statutes, insured parties may see more coverage denials which, in turn, could lead to more coverage actions.2
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Holly A. Rice, Saxe Doernberger & Vita, P.C.Ms. Rice may be contacted at
HRice@sdvlaw.com
Customer’s Agreement to Self-Insure and Release for Water Damage Effectively Precludes Liability of Storage Container Company
December 16, 2019 —
Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLPIn Kanovsky v. At Your Door Self Storage (No. B297338; filed 11/25/19), a California appeals court held that a waiver of liability and agreement to self-insure in a storage container contract barred coverage for water damage to goods stored in the container.
In Kanovsky, plaintiffs contracted for portable storage containers when moving. They loaded their washing machine into one of the containers without checking whether it was fully drained. They locked the containers and reopened them four years later to discover water damage to the contents. They sued the storage company, alleging causes of action for breach of contract; tortious breach of covenant; negligence; and violation of the Consumer Legal Remedies Act, Civil Code section 1750. The storage company’s insurer intervened and moved for summary judgment, which was granted.
The appeals court affirmed. The storage company’s contract contained a release of liability stating that personal property was stored “at the customer’s sole risk” and the owners “shall not be liable for any damage or loss,” including water damage. Further, the contract stated that the containers were not waterproof, and again that the storage company was not liable for water damage. The contract attached an addendum further stating that the owner was “a landlord renting space, is not a warehouseman, and does not take custody of my property.” The addendum went on with an acknowledgement that the owner: “2. Is not responsible for loss or damage to my property; 3. Does not provide insurance on my property for me; and 4. Requires that I provide my own insurance coverage or be ‘Self-Insured’ (personally assume risk of loss or damage).”
Reprinted courtesy of
Christopher Kendrick, Haight Brown & Bonesteel LLP and
Valerie A. Moore, Haight Brown & Bonesteel LLP
Mr. Kendrick may be contacted at ckendrick@hbblaw.com
Ms. Moore may be contacted at vmoore@hbblaw.com
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Under Privette Doctrine, A Landowner Delegates All Responsibility For Workplace Safety to its Independent Contractor, and therefore Owes No Duty to Remedy or Adopt Measures to Protect Against Known Hazards
September 29, 2021 —
Krsto Mijanovic, Jeffrey C. Schmid & John M. Wilkerson - Haight Brown & BonesteelIn Gonzalez v. Mathis (2021 WL 3671594) (“Gonzalez”), the Supreme Court of California held that a landowner generally owes no duty to an independent contractor or its workers to remedy or adopt other measures to protect them against known hazards on the premises. The Court applied the Privette doctrine which establishes a presumption that a landowner generally delegates all responsibility for workplace safety to its independent contractor. (See generally Privette v. Superior Court (1993) 5 Cal.4th 689; SeaBright Ins. Co. v. US Airways, Inc. (2011) 52 Cal.4th 590.) As such, the independent contractor is responsible for ensuring that the work can be performed safely despite a known hazard on the worksite, even where the contractor and its workers are unable to take any reasonable safety precautions to avoid or protect themselves from the known hazard.
In Gonzalez, the landowner, Mathis, had hired an independent contractor, Gonzalez, to clean a skylight on his roof. To access the skylight, Gonzalez needed to utilize a narrow path between the edge of the roof and a parapet wall. While walking along this path, Gonzalez slipped and fell to the ground, sustaining serious injuries. Gonzalez alleged this accident was caused by several dangerous conditions on the roof, including a slippery surface, a lack of tie-off points to attach a safety harness, and a lack of a guardrail. Gonzalez was aware of all of these hazards prior to the accident.
Reprinted courtesy of
Krsto Mijanovic, Haight Brown & Bonesteel,
Jeffrey C. Schmid, Haight Brown & Bonesteel and
John M. Wilkerson, Haight Brown & Bonesteel
Mr. Mijanovic may be contacted at kmijanovic@hbblaw.com
Mr. Schmid may be contacted at jschmid@hbblaw.com
Mr. Wilkerson may be contacted at jwilkerson@hbblaw.com
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Australians Back U.S. Renewables While Opportunities at Home Ebb
March 16, 2020 —
Natalia Kniazhevich & Matthew Burgess - BloombergSome of Australia’s biggest funds are pouring money into U.S. clean-energy projects as they butt up against a shortage of green opportunities at home.
AustralianSuper, the country’s largest pension fund, recently joined Queensland Investment Corporation in a $1 billion funding round for Generate, a San Francisco-based green-finance company. And Construction and Building Unions Superannuation, another pension giant, made its first U.S. clean-power investments last year.
The investments come as the wildfires that charred an area about the size of New York State have put increasing pressure on funds to do more to fight global warming. The problem, investors say, is the Australian government isn’t promoting clean-energy development, leaving the nation without enough sizable projects to back.
“At this point the platforms of scale don’t exist in Australia,” said Nik Kemp, head of infrastructure at AustralianSuper. “The size of the U.S. market makes for a much larger market and much better long-term growth opportunities.”
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Natalia Kniazhevich & Matthew Burgess, Bloomberg