There's No Such Thing as a Free House
April 01, 2015 —
Megan McArdle – BloombergShould people be able to get a free house by refusing to pay their mortgage?
That's the question Florida has to answer. The housing crisis is over, and the housing market is healing itself, though slowly in some places. But a backlog of foreclosures still remains ... and it has been going on so long that some homes are now past the statute of limitations for collecting debt. Lawyers for the homeowners are arguing that this means they get to keep the house. Lawyers for the banks are, unsurprisingly, arguing that each month they fail to pay the mortgage payment starts the statutory clock anew.
Both arguments create problems if the courts endorse them. If failing to pay really restarted the clock every month, then there wouldn't be a statute of limitations on debt -- creditors could just keep sending you bills forever and dun you right up to the edge of your grave. There's a very good reason that we have statutes of limitations on most crimes and most debts: The law recognizes that our interests in justice and contract rights must be balanced against other considerations. People need to be able to plan their lives without decades-old problems coming back to bite them, and also, as cases age, they get harder and harder to prove as witnesses die, evidence gets lost and memories fade.
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Megan McArdle, BloombergMs. McArdle may be contacted at
mmcardle3@bloomberg.net
Pulte Home Corp. v. CBR Electric, Inc.
August 24, 2020 —
Michael Velladao - Lewis BrisboisIn Pulte Home Corp. v. CBR Electric, Inc., 50 Cal.App.5th 216 (June 10, 2020), the California Court of Appeal reversed the trial court’s entry of judgment in favor of six subcontractors with respect to an equitable subrogation lawsuit filed by St. Paul Mercury Insurance Company (“St. Paul”). St. Paul filed the lawsuit after defending Pulte Home Corp. (“Pulte”) against two construction defect lawsuits. The lawsuit contended that St. Paul was entitled to seek recovery of defense costs incurred on behalf of Pulte based on equitable subrogation. St. Paul relied on the indemnity clauses in each of the subcontracts, and argued that the subcontractors had breached their contracts with Pulte. As such, each subcontractor was obligated to pay an equitable share of the defense of the construction defect lawsuits relating to their work on the homes at issue in such lawsuits. The trial court ruled against St. Paul and held that the subcontractors’ failure to pay defense costs did not “cause” the homeowners’ claims, such that there was no causal connection supporting a claim for equitable subrogation. In addition, the trial court found that “equitable subrogation was an all-or-nothing claim, meaning it required a shifting of the entire amount of defense costs to the subcontractors on a joint and several basis and did not allow for an apportionment of costs among the defendant subcontractors.”
In reversing the trial court’s decision, the Court of Appeal reasoned that St. Paul stood in the shoes of Pulte and was limited to pursuing recovery from the subcontractors based on the same rights as afforded to Pulte under the subcontracts. The Court of Appeal noted that St. Paul was seeking reimbursement of defense costs from the subcontractors based on the theory that they were contractually liable for paying an equitable share of defense costs. The Court of Appeal also noted that St. Paul’s claim was not premised on the contention that the subcontractors’ failure to pay defense costs caused the homeowners’ claims. Rather, St. Paul’s claim was premised on the subcontractors’ breach of their defense duty owed to Pulte under the indemnity clauses in their subcontracts.
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Michael Velladao, Lewis BrisboisMr. Velladao may be contacted at
Michael.Velladao@lewisbrisbois.com
Inside New York’s Newest Architectural Masterpiece for the Mega-Rich
May 20, 2015 —
Oshrat Carmiel – BloombergThe newest condominium tower in midtown Manhattan's billionaires district is ready to open its doors to buyers. It took almost a decade to get there.
The skyscraper at 53 W. 53rd St., designed by French architect Jean Nouvel and rising next to the Museum of Modern Art, will start marketing its 139 apartments next week, with prices starting at $3 million. Planned since 2006, the project endured the real estate bust and a global financial crisis that decimated demand for luxury homes. Now it's emerging when buyers can't seem to get enough of them.
"We're very eager to begin,'' said David Penick, the New York-based managing director for developer Hines, which is building the project with Goldman Sachs Group and Singapore-based Pontiac Land Group. "We're confident in what we have to sell in the market we're in, and we'll see how it goes.''
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Oshrat Carmiel, Bloomberg
Nancy Conrad to Serve as President of the Pennsylvania Bar Association
May 28, 2024 —
White and Williams LLPWhite and Williams is honored to announce that Nancy Conrad, Managing Partner of the Lehigh Valley office and Chair of the Higher Education Practice Group, will serve as President of the Pennsylvania Bar Association (PBA) for the 2024-2025 term. She will be the seventh woman to serve as President, the second president to hail from Lehigh Valley, the third partner from White and Williams and our firm’s first woman Partner to serve in this role. Conrad recently completed her term as President of the Lehigh County Bar Association (2023-2024).
Tim Davis, Managing Partner stated, “We are proud of Nancy as she begins her term as President of the Pennsylvania Bar Association. Her commitment to ensuring excellence in the profession, her focus on the community and on being an inclusive thought-leader have all laid the foundation for her to take on this important position."
During her career and involvement with the PBA, Conrad served on a number of committees and sections. She started with the Women in the Profession Committee (WIP), then expanded to the Federal Practice Committee, the Labor & Employment Section, the Civil Litigation Section and others. In each of these committees and sections, she served in leadership roles leading to her appointment as Woman Governor and Chair of the DEI Team.
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White and Williams LLP
Los Angeles Is Burning. But California’s Insurance Industry Is Not About to Collapse.
January 14, 2025 —
Jerry Theodorou - R StreetFive fires are
raging in the Los Angeles outskirts currently – the Palisades Fire, the Eaton Fire, the Lidia Fire, the Sunset Fire, and the Hurst Fire. They have been stoked by a trifecta of 100 mph wind gusts, elevated heat, and bone-dry grass and shrubs serving as tinder. The severity of the fires has raised questions about the role of climate change in the conflagrations and insurers’ claims-paying capacity. But while we recognize the immensity of the hardship and tragedy to many Angelenos from the fires, we also must recognize that California’s insurance industry is not about to collapse.
Many have ignored or missed
recent reforms to California insurance regulation that are poised to make the private market more sustainable, and help stem an exodus of insurers from the Golden State.
Whether the intensity of wildfires is exacerbated by climate change is an open question. An R Street
study found that natural catastrophes have increased in severity, but not in frequency. And the main reason catastrophe severity has risen is an increase in the built environment – there is simply more stuff now to be destroyed.
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Jerry Theodorou, R StreetMr. Theodorou may be contacted at
jtheodorou@rstreet.org
Big League Dreams a Nightmare for Town
April 03, 2013 —
CDJ STAFFThe town of Gilbert, Arizona had their own big dreams for Big League Dreams Gilbert, which the town was convinced would bring in financial benefits. Now the amateur sports complex is plagued by defects and failing infrastructure. The town was wondering how to create sufficient recreation facilities when Big League Dreams made a proposal that would bring tax revenue from a new stadium complex.
Ten years later, Gilbert says it’s not getting enough of the revenue from the parks. The proposal, created by Big League Dreams, estimated an economic benefit of $40 million over 30 years with a construction cost of $22.7 million. Instead, construction ran to $42.7 million and over the last two years the town has received only $250,570.
Then there are the construction defects. The structure was warranteed for only one year. That warrantee long over, the complex has problems with various concrete surfaces and has generated injury claims. The town did not inspect the park after Big League Dreams started operating it. They later found out that some parts did not conform to code, with 39 problem areas referenced in a report. Some of these included safety issues like missing handrails.
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Subrogation Waiver Unconscionable in Residential Fuel Delivery Contract
April 29, 2024 —
Ryan A. Bennett - The Subrogation StrategistIn a matter of first impression, the Superior Court of Connecticut (Superior Court), in American Commerce Ins., Co. v. Eastern Fuel Corp., No. CV-206109168-S, 2024 Conn. Super. LEXIS 380, held that a waiver of subrogation provision in a consumer fuel service/delivery contract violated public policy. The Superior Court overruled the motion for summary judgment filed by Eastern Fuel Corporation (Eastern) and determined that the clause was impermissible as the contract was entered into by two parties with unequal bargaining power.
American Commerce Insurance Company (American) provided property insurance to Arlene and James Hillas (the Insureds) for their home in Woodbridge, Connecticut. The Insureds hired Eastern to service their heating system on or around October 25, 2018. The service work at the property included inspecting the oil filters and flushing the fuel lines. On November 1, 2018, when the Insureds turned the heating system on for the first time that season, the two oil tanks on the property were allegedly full. After a series of deliveries, claims that the oil levels were lower than expected, discovering oil staining on the floor and Eastern’s replacement of the oil lines, Eastern delivered another 429 gallons. However, after the delivery, additional leaks were discovered relating to the oil line replacements. Ultimately, the Insureds submitted a claim to American and American paid in excess of $59,000 for the damage incurred.
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Ryan A. Bennett, White and Williams LLPMr. Bennett may be contacted at
bennettr@whiteandwilliams.com
Contractors Should Be Optimistic that the Best Value Tradeoff Process Will Be Employed by Civilian Agencies
September 10, 2018 —
Pillsbury's Construction & Real Estate Law Team - Gravel2GavelIn The Fiscal Year 2019 NDAA Imposes Government-Wide Limitations on the Use of Lowest-Price Technically Acceptable Procurements, Pillsbury attorneys Dick Oliver and Aaron Ralph are optimistic that contractors will soon have additional legal authority to demonstrate to civilian agencies that a best value tradeoff process should be employed.
- Congress’ trend of limiting the use of the much-derided lowest price, technically acceptable (LPTA) procurement process continues.
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Pillsbury's Construction & Real Estate Law Team