Court Exclaims “Enough!” To Homeowner Who Kept Raising Wrongful Foreclosure Claims
April 01, 2015 —
Krsto Mijanovic and Annette F. Mijanovic – Haight Brown & Bonesteel LLP“There are no free houses,” began the decision issued by the Court of Appeal on March 23, 2015 in Boyce v. T.D. Service Company (B255958). Examining three years of litigation in bankruptcy court, unlawful detainer court, and the superior court, and each of their respective appellate courts, the Court of Appeal held that the plaintiff’s wrongful foreclosure claims were barred by res judicata and collateral estoppel.
Plaintiff was a borrower who purchased a home subject to a deed of trust. After plaintiff defaulted on the loan, nonjudicial foreclosure proceedings were initiated. To avoid foreclosure, plaintiff engaged in a series of stall tactics, including filing an emergency bankruptcy petition, appealing the bankruptcy court’s decision to grant the trustee relief of stay, refusing to leave the property following the trustee’s sale thereby causing an unlawful detainer action to be filed, and appealing the granting of summary judgment in favor of the defendants in the unlawful detainer action. Once evicted, plaintiff sued all the entities involved in the foreclosure process for wrongful foreclosure, declaratory relief, violation of Unfair Practices Act, and quiet title. When the trial court sustained the defendants’ demurrers on the grounds of res judicata/collateral estoppel, plaintiff naturally appealed.
Reprinted courtesy of
Krsto Mijanovic, Haight Brown & Bonesteel LLP and
Annette F. Mijanovic, Haight Brown & Bonesteel LLP
Mr. Mijanovic may be contacted at kmijanovic@hbblaw.com
Ms. Mijanovic may be contacted at amijanovic@hbblaw.com
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Hovnanian Increases Construction Defect Reserves for 2012
January 06, 2012 —
CDJ STAFFIn their fourth quarter earnings call, executives of Hovnanian Enterprises made some projections for investors, covering the company’s plans for 2012. During the call, Ara K. Hovnanian, the firm’s CEO, discussed their reserves to meet construction defect claims. The firm does an annual actuarial study of their construction defect reserves.
Mr. Hovnanian noted that there have been no changes for the past several years, but this year they are increasing their reserves by about $6.3 million. Additionally, the firm has added $2.5 million to their legal reserves. Mr. Hovnanian stated “we do not anticipate that changes of this magnitude will be recurring as we look forward to 2012.”
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Appellate Team Secures Victory in North Carolina Governmental Immunity Personal Injury Matter
January 23, 2023 —
Sam Friedman & Christopher Meeks - Lewis BrisboisAtlanta, Ga. (January 12, 2023) - Atlanta Appellate Partners Seth M. Friedman and Christopher Meeks obtained a significant appellate win on behalf of a city in North Carolina when the North Carolina Court of Appeals reversed the trial court’s denial of the city’s motion for summary judgment.
In the underlying case, Lewis Brisbois’ client was sued for injuries that occurred during the construction of a dog park. The city moved for summary judgment on the grounds that it was immune from suit under the doctrine of governmental immunity. The trial court denied the motion and held that the city waived its governmental immunity through the purchase of a liability insurance policy. Lewis Brisbois was subsequently retained to handle the appeal.
Before the North Carolina Court of Appeals, Lewis Brisbois argued, on behalf of its client, that well-established North Carolina law, along with a particular provision in the city’s insurance policy, rendered the city immune from the plaintiff’s claims. The appellate court agreed, holding that the city was immune from all liability and entitled to summary judgment on all of the plaintiff’s claims. The court's full opinion can be read
here.
Reprinted courtesy of
Sam Friedman, Lewis Brisbois and
Christopher Meeks, Lewis Brisbois
Mr. Friedman may be contacted at Seth.Friedman@lewisbrisbois.com
Mr. Meeks may be contacted at Christopher.Meeks@lewisbrisbois.com
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World-Famous Architects Design $480,000 Gazebos for Your Backyard
December 10, 2015 —
Katya Kazakina – BloombergStar architects known for dreaming up museums, concert halls, and stadiums are aiming to bring high design into a much more pedestrian segment: prefabricated, mixed-use structures.
If you don't want to spring for one of Zaha Hadid's $50 million penthouses, you can now have your own outdoor dining pavilion by the Pritzker Prize winner. Price tag: $480,000.
Made with wood, stainless steel, and aluminum, the curvy piece comprises a platform and a sprawling, perforated canopy, resembling a giant mushroom straight out of Alice in Wonderland. (This is a Hadid, after all.) It will be made in an edition of 24.
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Katya Kazakina, Bloomberg
Revolutionizing Buildings with Hybrid Energy Systems and Demand Response
January 08, 2024 —
Aarni Heiskanen - AEC BusinessA recent study conducted by the Finnish Building Services 2030 group explores the potential technologies and business prospects for adaptable energy systems within buildings.
Building Services 2030 is a Finnish consortium of Aalto University, Tampere University, and 14 industry partners. The consortium has defined a shared vision for the Finnish building service sector and researches topics that help reach the vision. My company is responsible for the group’s communication, so I eagerly read the research reports as they come out.
One of the new reports I found very timely is about the energy flexibility of buildings. The authors are Senior Researcher Juha Jokisalo and Professor Matti Lehtonen from Aalto University. They highlight how the contemporary energy landscape is undergoing a significant transformation.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
The Importance of Providing Notice to a Surety
October 21, 2015 —
Craig Martin – Construction Contractor AdvisorA recent case out of Missouri emphasizes the importance of providing notice to a surety when a bonded subcontractor is in default. When the question of whether a surety will be obligated under the bond is in the balance, notice is crucial.
In CMS v. Safeco Insurance Company, Safeco provided a performance bond to a subcontractor for the benefit of CMS. The bond specifically provided:
“PRINCIPAL DEFAULT. Whenever the Principal [Subcontractor] shall be, and is declared by the Obligee [CMS] to be in default under the Subcontract, with the Obligee having performed its obligations in the Subcontract, the Surety [Safeco] may promptly remedy the default, or shall promptly:
4.1 COMPLETE SUBCONTRACT. . . .
4.2 OBTAIN NEW CONTRACTORS. . . .
4.3 PAY OBLIGEE. . . .
4.4 DENY LIABILITY. . .”
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
Do We Really Want Courts Deciding if Our Construction Contracts are Fair?
March 19, 2015 —
Christopher G. Hill – Construction Law MusingsAs I posted recently, the Virginia General Assembly has passed, and I can see no reason why the governor won’t sign, a bill that would
essentially invalidate preemptive contractual waivers of lien rights as they relate to subcontractors and material suppliers. It does not apply to General Contractors, but it is a step in what many (including those attorneys that represent subcontractors and suppliers) believe is the right direction.
Of course, as soon as I posted last week, my friend and colleague
Scott Wolfe (@scottwolfejr) commented on that post and then
gave his two cents worth at his Zlien blog. The gist of the comments here at Musings and the post over at his blog was essentially that these contractual provisions were inherently unfair and therefore should be abolished because of both a relative disparity in leverage between the Owner or GC and the Subcontractor when it comes to negotiations and the fact that subcontractors often don’t read their contracts or
discuss them with a construction attorney prior to signing them. I hear this first of his arguments often when I am reviewing a contract after the fact and a client or potential client acts surprised that a provision will be enforced and the courts of the Commonwealth of Virginia will actually enforce them. As to Scott’s second reason, I have always warned here at Musings that
you should read your contracts carefully because they will be the law of your business relationship in the future.
The first of his two points is more interesting and in some ways more easily supported. However, where we are speaking of contracts between businesses where both sides are bound by the terms of the contract, it begs the question of whether in seeking to make contracts more “fair” we could add a layer of uncertainty that could cause more problems than it solves. Do we really want courts stepping in after the fact to renegotiate the terms of a deal that was struck months or possibly years before because one judge believes that the deal was too one sided? Do we really need such “Monday morning quarterbacking?” Is one person’s idea of “fair” better than another’s when both parties to the contract had the full ability to read, negotiate and possibly reject the deal long ago? Personally, I think that the answer to these questions is, in all but the most egregious cases or where the legislatures have stepped in adding certainty (whether to the good or bad), “No.”
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
Fifth Circuit Finds Duty to Defend Construction Defect Case
March 14, 2022 —
Tred R. Eyerly - Insurance Law HawaiiReversing the judgment of the district court, the Fifth Circuit found the insurer owed a defense in a construction defect case. Siplast, Inc. v. Emplrs Mut. Cas. Co., 2022 U.S. App. LEXIS 795 (5th Cir. Jan. 11, 2022).
The Archdiocese of New York sued various parties for a roofing project at a high school in the Bronx. Siplast, the roofing manufacturer, was included as a defendant. The underlying lawsuit arose from the Archdiocese purchase of a roof membrane system from Siplast. Siplast guaranteed that the roof membrane system would remain "in a watertight condition for a period of 20 years . . . or Siplast will repair the Roof Membrane System at its own expense."
After installation of the roof, school officials noticed water damage in the ceiling tiles throughout the school after a rain storm. Siplast attempted to repair the damage, but was unsuccessful. Siplast later informed the Archdiocese that the guarantee would not be honored regarding any permanent improvements of the roof. The Archdiocese filed suit against Siplast and the installing contractor. The cause of action against Siplast was for breach of the guarantee.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com