Fairfield Connecticut Building Expert Directory

Justice Didn’t Ensure Mortgage Fraud Was Priority, IG Says

March 19, 2014 — Tom Schoenberg and Phil Mattingly – Bloomberg
The U.S. Justice Department failed to pursue mortgage fraud in the years following the 2008 financial crisis with the same level of commitment that it publicly touted, an internal watchdog said. While Attorney General Eric Holder said mortgage-fraud cases were among the department’s top priorities, the Federal Bureau of Investigation internally ranked them the lowest of six criminal threats, according to a report released today by Inspector General Michael Horowitz. The FBI devoted fewer resources to such cases even though Congress allocated $196 million for fiscal years 2009 to 2011 to pursue such conduct. The Justice Department has been criticized by lawmakers and judges for not bringing more criminal cases against individuals following the collapse in housing prices and ensuing market turmoil. In August, Holder retracted a public statement after Bloomberg News reported that the department had inflated its track record of mortgage-fraud prosecutions. Mr. Schoenberg may be contacted at tschoenberg@bloomberg.net; Mr. Mattingly may be contacted at pmattingly@bloomberg.net Read the court decision
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Reprinted courtesy of Tom Schoenberg and Phil Mattingly, Bloomberg

S&P Suspended and Fined $80 Million in SEC, State Mortgage Bond Cases

January 21, 2015 — Keri Geiger and Matt Robinson – Bloomberg
Standard & Poor’s (MHFI) agreed to be suspended from rating the biggest part of the commercial-mortgage bond market and pay almost $80 million to state and federal authorities over claims it bent criteria to win business. S&P misled investors about the methodology it used in 2011 to rate eight commercial-mortgage backed securities, the U.S. Securities and Exchange Commission said in a statement today. The company will pay about $58 million to the SEC and an additional $19 million to attorneys general for New York and Massachusetts to settle the matter. Ms. Geiger may be contacted at kgeiger4@bloomberg.net; Mr. Robinson may be contacted at mrobinson55@bloomberg.net Read the court decision
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Reprinted courtesy of Keri Geiger and Matt Robinson, Bloomberg

William Lyon to Acquire RSI Communities

February 22, 2018 — Dave Suggs - CDJ STAFF
According to the article “William Lyon Agrees to Buy RSI Communities $460 million deal plants Lyon in Texas and adds to Inland Empire land holdings” published on the website Builder, the Newport Beach home builder is purchasing the Southern California and Texas home builder. This will be Lyon Homes’ first venture in the state of Texas. RSI Communities works within both San Antonio and Austin, Texas as well as Southern California and the Inland Empire. It was founded by Todd Palmaer, a home building expert and Ron Simon, a building products expert and Newport Beach businessman. First time home buyers have been RSI’s main target. President and CEO of RSI, Tod Palmaer is optimistic about the acquisition “We are delighted to have our company join the William Lyon Homes organization. We have a great deal of confidence in the William Lyon Homes platform and its executive management team, and believe that its acquisition of RSI Communities will add to Lyon’s continued success in its current and new markets.” Pat Donahue who has almost 30 years of experience in home building, will serve as President to the Inland Empire Division. John Bohnen, RSI’s present Chief Operating Officer, will be the regional president in Texas. Mr. Bohnen has previously held executive positions with numerous home builders. William Lyon’s president and CEO Mark R. Zaist is excited about adding RSI’s key players to their team, and had this to say about the purchase. “The acquisition of RSI represents our most significant acquisition since our entry into Portland and Seattle with the Polygon Northwest Homes acquisition in 2014 and furthers our strategy of building in the strongest markets in the Western U.S., while also strengthening our pipeline in Southern California, as we continue our mission of being the premier Western Regional home builder.” Read the court decision
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Wall Street’s Palm Beach Foray Fuels Developer Office Rush

June 28, 2021 — Natalie Wong - Bloomberg
First came the pandemic migration of New York financiers to West Palm Beach. Now comes the investor rush for offices to accommodate them. With the likes of Goldman Sachs Group Inc. and Steve Cohen’s Point72 Asset Management opening outposts in the Florida city, an area once known for snowbirds and retirees has suddenly become hot market for commercial real estate. At the forefront is Manhattan developer Related Cos., which has been accelerating investments in West Palm Beach and now controls about a third of its downtown office stock. It’s a bet that even as Covid restrictions ebb and New York bankers are called back to their office towers, South Florida’s pandemic boom is here to stay. The region, with its relatively lax virus rules, no state income tax and comparatively cheaper homes, last year saw thousands of people flock to enclaves such as West Palm Beach -- a city that for now has just slightly more downtown office space than a single Empire State Building. Read the court decision
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Reprinted courtesy of Natalie Wong, Bloomberg

Builder Survey Focuses on Green Practices of Top 200 Builders

October 01, 2014 — Beverley BevenFlorez-CDJ STAFF
Builder magazine reported that the 2013 Builder 100/Next 100 survey provided data on how many builders constructed homes using a certified third-party green rating system. They discovered that nearly half of the 200 top U.S. builders constructed 100% of its homes to a third-party standard, while 38.5% reported that some of the homes were constructed using a third-party standard, while 12.5% stated that none of their homes were built to a third-party standard. “The decision to offer homes that are high-performance, energy-efficient, non-toxic, sustainable--whatever the preferred term--involves many considerations and builders must weigh expenses and impediments against potential benefits,” according to Builder magazine. Read the court decision
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Pulling the Plug

December 13, 2022 — Todd R. Regan - Construction Executive
As a contractor, you may have wondered if your contract can be terminated by the owner for cause after the project has reached substantial completion. The answer is yes. Under certain circumstances it may be permissible—or even necessary—for a project owner to terminate the contract for cause after the project has reached substantial completion. Although the rights of the parties in any case will depend in large part on the specific contract language, the fact that a project has reached substantial completion is not an absolute bar to termination for cause, particularly when the owner intends to pursue a performance-bond claim. Completion Versus Performance Following substantial completion, a contractor typically will have outstanding contractual obligations such as paying its subcontractors and suppliers, bonding off any mechanic’s liens, completing the punch list, remediating defective work, testing and commissioning equipment, providing manufacturer’s warranties and performing its own warranty obligations. Reprinted courtesy of Todd R. Regan, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Insurer Sued for Altering Policies after Claim

January 13, 2014 — CDJ STAFF
A lawsuit alleges that Fidelity National Property & Casualty Insurance Co. retroactively cancelled policies, substituting policies that covered less after claims were made due to damages from Hurricane Sandy. Insurance Journal reports that Dayton Towers Corp., which owns seven high-rises in Queens, New York City, has sued the insurer. According to Dayton, the policies covered the buildings for amounts from $2.5 to $2.7 million. The total coverage for all seven buildings was $18.5 million. Under new policies, the buildings were covered for $250,000 each, for a total of $1,750,000, which is the amount that Fidelity paid Dayton. The lawsuit alleges that the policy does not allow for the terms to be rewritten when claims are pending. Read the court decision
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Colorado Supreme Court Decision Could Tarnish Appraisal Process for Policyholders

September 16, 2019 — Michael V. Pepe - Saxe Doernberger & Vita, P.C.
On June 24, 2019, the Colorado Supreme Court ruled that the plain language of appraisal provisions in insurance policies, requiring “impartial appraisers,” direct appraisers to be “unbiased, disinterested, and unswayed by personal interest,” regardless of who hires them, and prohibits the party-appointed appraisers from acting as advocates. A common and attractive alternative dispute resolution option, the appraisal process usually entails the policyholder and insurer each hiring their own appraiser, who estimates how much the claim is worth. These appraisers also select a third-party umpire, and if they cannot agree upon one, a court appoints one. The umpire analyzes the conflicting estimates and presents a number to resolve the dispute. If two of the three parties agree with the outcome, the number becomes binding. Owners Ins. Co. v. Dakota Station II Condo. Ass'n, Inc.1 began when Dakota Station II Condominium Association Inc. (“Dakota”) and its insurer, Owners Insurance Company (“Owners”) could not agree on how to value two claims arising out of weather damage. To settle the differences and come to a resolution, Dakota invoked the appraisal provision in the insurance policy instructing each party to select its own “competent and impartial appraiser.” Ultimately, a court-appointed umpire considered six cost categories in dispute and adopted four of Owners’ estimates and two of Dakota’s. Read the court decision
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Reprinted courtesy of Michael V. Pepe, Saxe Doernberger & Vita, P.C.
Mr. Pepe may be contacted at mvp@sdvlaw.com

FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES