FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

What Happens When a Secured Creditor Files a Late Claim in an Equity Receivership?

September 28, 2017 — Ben Reeves - Snell & Wilmer Real Estate Litigation Blog
Pitting a receivership court’s inherent equitable powers against pre-existing property rights can lead to some pretty interesting questions. In SEC v. Wells Fargo Bank, N.A., 848 F.3d 1339, 1343-44 (11th Cir. 2017), the Eleventh Circuit recently examined whether a district court’s inherent authority to establish a claims submission process allowed the court to extinguish a security interest in real property based solely upon an untimely proof of claim. Much to the relief of secured creditors, the Eleventh Circuit held that the district court erred, as a matter of law, by extinguishing the creditor’s pre-existing property rights under those circumstances. Introduction Equity vests a district court with “‘broad powers and wide discretion to determine relief in an equity receivership.’” Wells Fargo, 848 F.3d at 1343-44 (quoting SEC v. Elliot, 953 F.2d 1560, 1566 (11th Cir. 1992)). These powers include: (i) establishing procedures for the submission of claims to a receiver, and (ii) setting a claims bar date. Id. at 1344 (citing SEC v. Tipco, Inc., 554 F.2d 710, 711 (5th Cir. 1977)). Read the court decision
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Reprinted courtesy of Ben Reeves, Snell & Wilmer
Mr. Reeves may be contacted at breeves@swlaw.com

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Insurers in New Jersey Secure a Victory on Water Damage Claims, But How Big a Victory Likely Remains to be Seen

April 03, 2019 — Kevin Sullivan - TLSS Insurance Law Blog
Property insurance policies commonly cover water damage caused by an accidental discharge or leakage of water from an on-site plumbing system and commonly exclude water damage caused by a sewer backup. So it’s not surprising that the cause of water damage is a common battleground between policyholders and insurers. In Salil v. Ohio Security Insurance Co., 2018 WL 6272930 (N.J. App. Div. Dec. 3, 2018), insurers scored a victory when the court held that the release of water and sewage into a restaurant was subject to a $25,000 sublimit for water damage caused by a sewer backup. But claims adjusters and policyholders confronted with water damage claims in New Jersey will no doubt continue to do battle over whether the Salil decision was a decisive victory for insurers or a limited one. In Salil, the insured landlord leased its building to a restaurant operator. After the insured’s tenant reported water and odor at the restaurant, the insured contacted a plumber, who informed the insured that a clog in the restaurant’s toilet caused Category 3 water to flow into the restaurant. The insured allegedly sustained approximately $160,000 in restoration costs and loss of business income. The plumber used a snake to clear the sewer line to remedy the issue. The restoration company confirmed the cause of the loss was a sewer back up. On this basis, the insurer determined that the cause of loss was a sewer backup. The policy excluded coverage for water damage caused by a sewer back-up, but an endorsement restored that coverage, subject to a $25,000 sub-limit for “direct physical loss or damaged caused by water… which backs up into a building or structure through sewers or drains which are directly connected to a sanitary sewer or septic system.” Pursuant to this endorsement, the insurer paid its $25,000 sublimit. Read the court decision
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Reprinted courtesy of Kevin Sullivan, Traub Lieberman
Mr. Sullivan may be contacted at ksullivan@tlsslaw.com

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The Looming Housing Crisis and Limited Government Relief—An Examination of the CDC Eviction Moratorium Two Months In

December 14, 2020 — Zachary Kessler - Gravel2Gavel
Months after the Centers for Disease Control and Prevention (CDC) issued a nationwide eviction moratorium using its emergency pandemic powers under the Public Health Service Act, the efficacy of this unprecedented measure remains unclear. While the Order ostensibly protects tenants facing homelessness or housing insecurity due to the financial impacts of the COVID-19 pandemic through the end of 2020, legal challenges have been initiated in Ohio and Georgia, with additional lawsuits appearing likely. Further, even barring legal challenges, courts have not handled these cases in a uniform manner. With lawmakers unable to reach any stimulus or COVID-19 relief agreement before the election, the CDC Order appears likely to remain the only federal eviction moratorium through its expiration on December 31, 2020. Since the Order’s enactment, the CDC has since released new guidance, answering some of the open questions not covered by the initial Order. This guidance, while non-binding, is largely more favorable to landlords and property management companies than the initial text of the Order, as it provides that landlords are not required to make tenants aware of the Order’s protections and may challenge the truthfulness of the tenants’ declarations in any state or municipal court. The guidance also clarified the potential criminal penalties for violating the Order and the criminal penalties for perjury for bad faith submissions of the requisite declaration by tenants. Read the court decision
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Reprinted courtesy of Zachary Kessler, Pillsbury
Mr. Kessler may be contacted at zachary.kessler@pillsburylaw.com

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Texas LGI Homes Goes After First-Time Homeowners

May 13, 2014 — Beverley BevenFlorez-CDJ STAFF
According to Big Builder, while many consumers have “gone to rentals…as the homeownership rate fell,” that hasn’t stopped Texas-based builder LGI Homes from marketing to the entry-level buyer: “We do not believe that we’re becoming a renter society,” Eric Lipar, LGI CEO told Big Builder. “We believe there is a need and a desire for homeownership.” “The real growth will be powered by an aggressive sales and marketing operation that aims to pull renters out of their apartments (or single-family rentals) and into LGI homes,” reported Big Builder. “So far this pitch has worked in Texas (Dallas, Houston, San Antonio, and Austin), in addition to Phoenix and Tampa, Fla.” Read the court decision
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PFAS and the Challenge of Cleaning Up “Forever”

July 31, 2023 — PFAS Team - Gravel2Gavel Construction & Real Estate Law Blog
From a stream of legal challenges, to ever-expanding regulations on things like cosmetics and drinking water, PFAS are the “forever chemicals” keeping companies and consumers on high alert. While industries scramble to remove the synthetic compounds from products, scientists are researching new techniques for scrubbing PFAS from the environment. There is money to be had for those who can find a more streamlined method of purging the substances—the U.S. Army Corps of Engineers has an $800 million contract on the table for the handling, destruction and replacement of PFAS-laden fire-fighting foam—leaving technology companies racing to create solutions. The three main PFAS cleaning techniques currently relied upon can be very effective but are also costly and may leave questionable byproducts in their wake. The established approaches include:

• Granular Activated Carbon. As one of the most studied treatments for PFAS removal, granular activated carbon is often used in water treatment plants. Large beds of carbon essentially soak up the unwanted chemicals. After the Sweeney Water Plant in North Carolina, whose water source is downstream from a fluorochemical-producing Chemours plant, was found to be contaminated with PFAS, the plant invested around $46 million into upgraded activated carbon systems. Once installed, these systems cost roughly $2.9 million to operate yearly, as the carbon needs to be replaced each time it reaches capacity. Though pricey, the plant says that the process now clears close to 100% of PFAS.

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Reprinted courtesy of PFAS Team, Pillsbury

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Court Addresses HOA Attempt to Restrict Short Term Rentals

December 11, 2018 — Kevin J. Parker - Snell & Wilmer Real Estate Litigation Blog
In a recent case, the Texas Supreme Court addressed an attempt by a homeowners’ association (“HOA”) to restrict short-term rentals based upon recorded Covenants, Conditions, and Restrictions (“CC&Rs”) applicable to a residential subdivision. The property was a single-family home. The homeowner rented the home through websites such as VRBO. The HOA issued notices of violation; the homeowner kept renting; the HOA assessed fines against the property. The property owner then sought a declaration from the court that the CC&Rs did not impose a minimum duration on occupancy or leasing. The trial court agreed with the HOA. The Texas Court of Appeals also agreed with the HOA. The Texas Supreme Court reversed, holding that the CC&Rs, as properly interpreted, did not prohibit short-term rentals. In arriving at its holding, the Texas Supreme Court analyzed the CC&Rs in detail and came to an interpretation different than the trial court and the Court of Appeals. Read the court decision
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Reprinted courtesy of Kevin J. Parker, Snell & Wilmer
Mr. Parker may be contacted at kparker@swlaw.com

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Gordie Howe Bridge Project Team Looks for a Third Period Comeback

September 26, 2022 — Jeff Yoders - Engineering News-Record
The late Detroit Red Wings hockey great Gordie Howe was beloved in his native Canada and in his adopted U.S. home. A new international bridge connecting both places is trying to create similar goodwill for border traffic, but the project’s public-private partnership team and the Canadian government authority it is working for will have to join together to shift lines and mount a comeback in the third period of its construction. Reprinted courtesy of Jeff Yoders, Engineering News-Record Mr. Yoders may be contacted at yodersj@enr.com Read the full story... Read the court decision
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Canadian Developer Faces Charges After Massive Fire on Construction Site

August 27, 2014 — Beverley BevenFlorez-CDJ STAFF
A fire leveled an apartment construction site in Canada last December, which resulted in almost two dozen charges relating to fire safety precautions and lack of cooperation with the Ministry of Labour’s investigation, according to CKWS TV. The Ministry of Labour has recently “laid 22 charges against three individuals and two companies—Jay Patry Enterprises Inc. and Steimach Property Management Inc.” CKWS TV reported that “[c]harges include failing to provide adequate space for workers to evacuate during an emergency, failing to protect the health and safety of workers and failing to inspect every fire extinguisher for defects or deterioration.” Jason Patry, Nathan Patry and Troy Stelmach have been charged with “obstructing and providing false information to a ministry of labour inspector, as well as failing to make the inspection process an easy one.” Read the court decision
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