JPMorgan Blamed for ‘Zombie’ Properties in Miami Lawsuit
June 18, 2014 —
Christie Smythe – BloombergJPMorgan Chase & Co. (JPM) engaged in a “pattern of discriminatory” lending that led to foreclosures, the city of Miami said in a lawsuit filed last week in federal court, the latest in a series of similar claims against the nation’s largest banks.
Last month, Banco Santander SA’s (SAN) U.S. unit was sued by the city of Providence, Rhode Island, over claims it stopped issuing mortgages in minority neighborhoods after the housing bubble burst. Santander Bank, previously named Sovereign Bank, pulled out of the neighborhoods and focused on white communities after being acquired by the Madrid-based lender in 2009, the city alleged.
Miami and Los Angeles are among cities to have filed similar lawsuits against Bank of America Corp., Citigroup Inc. (C) and Wells Fargo & Co. (WFC) for allegedly “red-lining” black and Hispanic areas as no-loan zones, and then “reverse red-lining,” flooding the areas with predatory mortgages even when minorities qualified for better terms.
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Christie Smythe, BloombergMs. Smythe may be contacted at
csmythe1@bloomberg.net
Hollywood Legend Betty Grable’s Former Home for Sale
June 30, 2014 —
Catherine Sherman – BloombergWhen it comes to Old Hollywood stars, Betty Grable was “the girl with the million-dollar legs.” She also lived in a million-dollar home just four blocks from the Hotel Bel-Air.
Located at 1280 Stone Canyon Rd, the house is currently on the market for $13.295 million.
“It’s a classic, Hollywood estate,” said listing agent Bjorn Farrugia of Hilton & Hyland. “It’s very picturesque — set back on one of the best streets in Bel-Air.”
Grable moved in after the home was built in 1937, the same year she married actor Jackie Coogan (aka “Uncle Fester” in the 1960s sitcom The Addams Family). Soon after, in 1939, the couple appeared in “Million Dollar Legs,” a movie giving rise to the actress’ nickname.
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Catherine Sherman – Bloomberg
WSDOT Seeks Retraction of Waiver Excluding Non-Minority Woman-Owned Businesses from Participation Goals
September 28, 2017 —
Lindsay K. Taft - Ahlers & Cressman PLLCIf you are a regular reader of our blog, you will likely recognize that our firm has been actively involved and concerned with the results of Washington State Department of Transportation’s (“WSDOT”) Disparity Study, which impacts both Disadvantaged Business Enterprises (“DBE”) and general contractors who bid on federally-funded projects with DBE goals. On June 1, 2017, WSDOT implemented a “waiver”, which excluded Caucasian women-owned firms (“WBEs”) from qualifying for Condition of Award DBE Goals on federally-funded projects. This drastic action was the result of WSDOT’s highly criticized 2012 Disparity Study conducted by BBC Research & Consulting of Denver, Colorado, which concluded non-minority women-owned firms do not face “substantial disparities” in the federally-funded transportation contracting market.
BBC’s study was criticized for a number of reasons, but most concerning was BBC’s flawed and unreliable statistical methodology that did not accurately represent true marketplace conditions. See Ahlers & Cressman letter of January 9, 2014 and Associated General Contractors of Washington article. For example, BBC’s results showed both decreasing WBE availability and availability vastly out of range with other states (e.g., the availability of women-owned construction firms in Washington was just 1.5% compared to 11.96% in Oregon). Nevertheless, based on this flawed BBC study and BBC’s assertion that women-owned firms did not face disparities, WSDOT sought and on June 1, 2017 was granted a waiver precluding general contractors from counting WBE firms towards their DBE goals on federally funded public works projects.
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Lindsay Taft, Ahlers & Cressman PLLCMs. Taft may be contacted at
ltaft@ac-lawyers.com
Ackman Group Pays $91.5 Million for Condo at NYC’s One57
April 15, 2015 —
David M. Levitt and Oshrat Carmiel – BloombergA group including billionaire investor Bill Ackman paid $91.5 million for a duplex penthouse at Extell Development Co.’s One57 condominium tower, one of New York City’s most expensive home purchases ever.
The purchase of unit 75 in the luxury skyscraper overlooking Central Park closed on March 27, according to property records filed Thursday. The buyer was listed as 57157 Co. LLC, a single-purpose entity that Ackman controls.
The 13,554-square-foot (1,259-square-meter), six-bedroom home spans the 75th and 76th floors of the 90-story skyscraper. Ackman last year told the New York Times it was “the Mona Lisa of apartments.” Monthly common charges on the unit were estimated at $23,595, according to documents Extell filed with the state attorney general’s office.
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David M. Levitt, Bloomberg and
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Reminder: Always Order a Title Search for Your Mechanic’s Lien
June 02, 2016 —
Christopher G. Hill – Construction Law MusingsMechanic’s liens are close to my heart as a construction attorney. These powerful tools for collection have been (and likely will be) discussed often here at Construction Law Musings. In fact, they rated their own page here at this little construction blog.
While the form for a mechanic’s lien that is found in the Virginia Code looks simple enough, what goes into that form is key to getting past the initial stage of the mere recording of the lien and moving on to where a lien claimant wishes to go: Payment. Everything from the proper amount of the lien to the timing of filing, the parties named, type of work performed and who signs the lien can trip you up even before you get a chance to have a judge examine your payment claim. In short, this simple form has many pitfalls.
On final item that is not often discussed is the description of the property and who the owner is on a project. A mistake on either of these fronts can be fatal as well. Often the “Owner” listed on the construction documents (the contracts, etc.) is not the same as the owner of the real estate to which your lien would attach. Sometimes a company may hire the general contractor as owner and either be a tenant of the property or could be the operating entity, but not the land holder. In either of these scenarios, merely naming the contract “owner” can be a mistake that could cost you your lien. The owner for lien purposes must be the land owner or there will be a problem.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
California Clarifies Its Inverse Condemnation Standard
December 30, 2019 —
Gus Sara - The Subrogation StrategistIn City of Oroville v. Superior Court, 446 P.3d 304 (Cal. 2019), the Supreme Court of California considered whether the City of Oroville (City) was liable to a dental practice for inverse condemnation damages associated with a sewer backup. The court held that in order to establish inverse condemnation against a public entity, a property owner must show that an inherent risk in the public improvement was a substantial cause of the damage. Since the dental practice did not have a code-required backwater valve — which would have prevented or minimized this loss — the court found that the city was not liable because the sewage system was not a substantial cause of the loss. This case establishes that a claim for inverse condemnation requires a showing of a substantial causal connection between the public improvement and the property damage. It also suggests that comparative negligence can be a defense to inverse condemnation claims.
In December 2009, a dental practice, WGS Dental Complex (WGS), located in the City, incurred significant water damage as a result of untreated sewage from the City’s sewer main backing up into WGS’ building. WGS submitted a claim to its insurance carrier, The Dentists Insurance Company (TDIC) and, in addition, sued the City for its uninsured losses, alleging inverse condemnation and nuisance. TDIC joined the litigation, alleging negligence, nuisance, trespass and inverse condemnation. Under California law, when a government entity fails to recognize that an action or circumstance essentially amounts to a taking for public use, a property owner can pursue an inverse condemnation action for compensation. The City filed a cross-complaint against WGS for failing to install a code-required backwater valve on their lateral sewer line, which would have prevented or minimized the backup.
The City filed a motion for summary judgment, which the trial court denied. WGS then sought a judicial determination on the issue of inverse condemnation. The City presented evidence that the sewage system was designed in accordance with industry standards, and that WGS failed to comply with the City’s plumbing code by failing to install a backwater valve on its private sewer lateral. The trial court found the City liable for inverse condemnation because the blockage that caused the backup originated in the City’s sewer line. The court held that the blockage was an inherent risk of sewer operation. The Court of Appeals affirmed the decision, holding that the City would have had to prove that the WGS’s lack of a backwater valve was the sole cause of the loss in order to absolve itself of liability.
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Gus Sara, White and WilliamsMr. Sara may be contacted at
sarag@whiteandwilliams.com
Homebuilder Confidence Takes a Beating
October 21, 2013 —
CDJ STAFFHomebuilder confidence dropped to fifty-five percent in October, the lowest percentage seen in the last four months. The score had been rising on the strength of renewed home sales. The current slump is attributed to increases in interest rates, which have made home purchases more expensive for prospective buyers, and the uncertainty of the budget struggle in Washington.
John Stumpf, the chairman and CEO of Wells Fargo said that “home price appreciation remains strong and affordability remains excellent.” Mr. Strum has “guarded optimism” over the effects of the budget struggle.
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Eighth Circuit Remands to Determine Applicability of Collapse Exclusion
January 06, 2012 —
Tred R. Eyerly - Insurance Law HawaiiThe Eighth Circuit determined a jury instruction regarding the applicability of the "all-risk" policy’s exclusion for "collapse" was inadequate. See KAAPA Ethanol, LLC v. Affiliated FM Ins. Co., 2011 U.S. App. LEXIS 22158 (8th Cir. Nov. 3, 2011).
KAAPA had nine large, cylindrical, stainless steel tanks fabricated at its location. Soon after operations began in 2003, some of the tanks experienced unusual movement and began to shift. A geotechnical engineer found "silty clay" had been used for infill instead of compacted granular fill called for in engineering drawings. A year long plan to repair all nine tanks was implemented.
Affiliated’s "all-risk" policy excluded damage caused by faulty workmanship. It also excluded damage caused by settling or cracking. The settling exclusion went on to provide, "This exclusion will not apply to loss or damage resulting from collapse of: a building or structure; or material part of a building or structure." Affiliated denied coverage because of the faulty workmanship and settling exclusions.
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com
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