Philadelphia Revises Realty Transfer Tax Treatment of Acquired Real Estate Companies
January 05, 2017 —
Nancy Frantz, Kevin Koscil & James Vandermark – White and Williams LLPOn December 8, 2016, the Philadelphia City Council voted unanimously to amend the ordinance governing realty transfer taxes in an effort to increase tax revenue. The current combined realty transfer tax rate in Philadelphia is 4.0% and will increase to 4.1% after December 31, 2016.[1] The amendment significantly impacts how taxes are imposed upon transfers of ownership in so-called “real estate companies” and effectively eliminates deals commonly referred to as 89-11 transactions. The amendment mainly focuses on transfers of real estate companies, rather than direct transfers of real estate, but it also affects certain direct transfers of real estate in exchange for noncash consideration.
Reprinted courtesy of White and Williams LLP
Nancy Frantz,
Kevin Koscil and
James Vandermark
Ms. Frantz may be contacted at frantzn@whiteandwilliams.com
Mr. Koscil may be contacted at koscilk@whiteandwilliams.com
Mr. Vandermark may be contacted at vandermarkj@whiteandwilliams.com
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Indemnification Provisions Do Not Create Reciprocal Attorney’s Fees Provisions
November 21, 2018 —
CDJ STAFFIn a good, recent decision, the Eleventh Circuit in International Fidelity Insurance Co. v. Americabe-Moriarity, JV, 2018 WL 5306683 (11th Cir. 2018), held that Florida Statute s. 57.105(7) cannot be used to shift attorney’s fees in a contractual indemnification clause in a dispute between a general contractor and subcontractor’s performance bond surety, when the dispute does not involve an actual indemnification claim stemming from a third-party.
In this case, a prime contractor terminated a subcontractor and looked to the subcontractor’s performance bond surety to pay for the completion work. The subcontractor had a standard AIA A312 performance bond that requires the prime contractor to comply with the terms of the bond, as well as the incorporated subcontract, in order to trigger the surety’s obligations under the bond. The surety filed an action for declaratory relief against the prime contractor arguing that the prime contractor breached the terms of the performance bond through non-compliance thereby discharging the surety’s obligations. The trial court agreed and the surety moved for attorney’s fees.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Florida Condos Bet on Americans Making 50% Down Payments
October 29, 2014 —
John Gittelsohn – BloombergJorge Perez crashed along with the real estate market, then regained his crown as Florida’s “Condo King” by building new projects with 50 percent deposits from foreign buyers. Now, for his next development, he’s looking to wealthy Americans.
In December, he’ll begin marketing the Auberge Beach Residences and Spa Fort Lauderdale, a $500 million oceanfront project 35 miles (56 kilometers) north of Miami. He expects as many as two-thirds of the buyers to come from the U.S. or Canada. All future owners must pay hefty deposits to finance construction by Perez’s Related Group, Fortune International Group and Fairwinds Group in a partnership that the companies plan to announce tomorrow.
“The U.S. buyers have made up an increasing share of luxury beachfront condominiums and, like our foreign buyers, they have shown little resistance to larger deposits,” Perez said in an e-mail. “Most feel that if they can’t put a 50 percent down payment, they probably should not be buying.”
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John Gittelsohn, BloombergMr. Gittelsohn may be contacted at
johngitt@bloomberg.net
Receiving a $0 Verdict and Still Being Deemed the Prevailing Party for Purposes of Attorney’s Fees
May 24, 2018 —
David Adelstein - Florida Construction Legal UpdatesLow and behold, a party can be the prevailing party for purposes of attorney’s fees even if that party is awarded $0. That’s right, even if the party is awarded a big fat zero, they can still be the prevailing party for purposes of being entitled to attorney’s fees. This is because a party is the prevailing party if they prevail on the significant issues in the case. A party can prevail on the significant issues even if that party is awarded $0. Whoa!
For example, in Coconut Key Homeowner’s Association, Inc. v. Gonzalez, 43 Fla.L.Weekly D1045a (Fla. 4th DCA 2018), a homeowner sued her homeowner’s association claiming the association breached its governing documents. There was a basis for fees under Florida’s homeowner’s association law (and there likely was a basis under the governing documents). At trial, the jury held that the association breached its governing documents, but awarded the homeowner nothing ($0). The trial court also issued injunctive relief in favor of the homeowner. The homeowner claimed she should be deemed the prevailing party for purposes of attorney’s fees; however, this was denied by the trial court based on the $0 verdict and no fees were awarded to the homeowner.
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dadelstein@gmail.com
Hurry Up and Wait! Cal/OSHA Hits Pause on Emergency Temporary Standards for COVID-19 Prevention
June 14, 2021 —
Michael Studenka & Jasmine Shams - Newmeyer DillionEmployers scrambling to prepare for the June 15th Reopening announced by Governor Newsom have spent the last week pouring over the revised Emergency Temporary Standards for COVID-19 Prevention (“Revised ETS”) approved by the Cal/OSHA Standards Board on June 3, 2021. After last night’s meeting of the Standards Board, however, it’s time to hit pause.
Last night, the Cal OSHA Standards Board held a specialty meeting to reconsider its Revised ETS in light of the latest guidance on face coverings issued by the California Department of Public Health (“CDPH”) on June 7, 2021. Following a presentation by the CDPH and extensive public comment, the Cal OSHA Standards Board voted unanimously to withdraw the Revised ETS and to take up the issue again at its next scheduled meeting on June 17, 2021. The net result in the interim is that California employers who intend to reopen on June 15 must initially comply with all of the requirements of the Cal/OSHA Standards Board Emergency Temporary Standards for COVID-19 Prevention as originally issued on November 20, 2020, including but not limited to, its social distancing, physical partitioning and mask wearing requirements.
Reprinted courtesy of
Michael J. Studenka, Newmeyer Dillion and
Jasmine Shams, Newmeyer Dillion
Mr. Studenka may be contacted at michael.studenka@ndlf.com
Ms. Shams may be contacted at jasmine.shams@ndlf.com
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California Supreme Court to Examine Arbitration Provisions in Several Upcoming Cases
December 09, 2011 —
CDJ STAFFGlen C. Hansen, writing on Abbott & Kinderman’s Land Use Law Blog looks at several cases pending before the California Supreme Court which ask if a developer can insist on arbitration of construction defect claims, based on provision in the CC&Rs. Currently, there is a split of opinions in the California appeals courts on the issue.
Four of the cases are in California’s Fourth Appellate District. In the earliest case, Villa Milano Homeowners Association v. Il Davorge, from 2000, the court concluded that the arbitration clause was sufficient to require that construction defect claims undergo arbitration. However, the Fourth Appellate District Court concluded in three later cases that the arbitration clauses did not allow the developer to compel arbitration. In two cases, argued in 2008 and 2010, the court concluded that to do otherwise would deprive the homeowners of their right to a jury trial. In the most recent case, Villa Vicenza Homeowners Association v. Nobel Court Development, the court decided that the CC&Rs did not create contractual rights for the developer.
The Second Appellate District Court came to a similar decision in Promenade at Playa Vista Homeowners Association v. Western Pacific Housing, Inc. In their decision, the court noted that CC&Rs could be enforced by homeowners and homeowners associations, but not developers.
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Premises Liability: Everything You Need to Know
September 09, 2019 —
Bremer Whyte Brown & O'Meara LLPPremises liability is a relatively simple concept: landowners, lessors, and occupiers of land must keep their property safe and avoid causing harm to others. Premises liability lawsuits can arise from an array of circumstances including a slip and fall by an individual, a construction site accident, or an accident at occurs on a residential or commercial property. Under California law, everyone is responsible, not only for the result of his or her willful acts, but also for an injury occasioned to another by his or her want of ordinary care or skill in the management of his or her property. California Civil Code 1714 (a). When an individual is injured on a property, the person harmed generally brings a lawsuit based upon a theory of negligence. Under this theory, an injured Plaintiff must prove the following:
- The defendant owned, leased, occupied, or controlled the property;
- The defendant was negligent in the use or maintenance of the property;
- The plaintiff was harmed; and
- The defendant’s negligence was a substantial factor in causing the plaintiff’s harm.
California Civil Jury Instructions 1000.
When evaluating a negligence claim under the theory of premises liability, there are several key elements for both a Plaintiff and a Defendant to consider. First, the landowner, occupier, or lessor of a premises is under a duty to exercise ordinary care in the use or maintenance of the premises to avoid exposing persons to an unreasonable risk of harm. Rowland v. Christian, 69 Cal. 2d 108 (1968). Essentially, a landowner or occupier is required to take steps to keep individuals on the property free from harm.
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Bremer Whyte Brown & O'Meara LLP
As Laura Wreaks Havoc Along The Gulf, Is Your Insurance Ready to Respond?
October 19, 2020 —
Walter J. Andrews, Michael S. Levine, Andrea DeField & Meagan R. Cyrus - Hunton Insurance Recovery BlogAs Texas and Louisiana brace for Hurricane Laura to make landfall, policyholders in the affected regions should be making last minute preparations to ensure their properties are covered in the storm’s wake.
Hurricane Laura is expected to make landfall as a Category 4 storm tonight, or early Thursday morning between Houston, Texas and Lake Charles, Louisiana. With wind speeds reaching over 120 mph, Laura has the potential for catastrophic damage to life and property and long-term disruption of normal business operations. The following three steps are crucial to ensuring that you protect your property and business and maximize insurance proceeds should your property fall in the path of this storm:
- Locate a copy of your policy.
Having your policy on hand prior to a loss will aid in starting your claim as soon as possible, as it may be more difficult to get in touch with your broker following a storm where thousands of claims are taking place simultaneously.
Reprinted courtesy of
Walter J. Andrews, Hunton Andrews Kurth,
Michael S. Levine, Hunton Andrews Kurth,
Andrea DeField, Hunton Andrews Kurth and
Meagan R. Cyrus, Hunton Andrews Kurth
Mr. Andrews may be contacted at wandrews@HuntonAK.com
Mr. Levine may be contacted at mlevine@HuntonAK.com
Ms. DeField may be contacted at adefield@HuntonAK.com
Ms. Cyrus may be contacted at mcyrus@HuntonAK.com
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