Bank of America’s Countrywide Ordered to Pay $1.3 Billion
July 30, 2014 —
Patricia Hurtado – BloombergBank of America Corp.’s Countrywide unit was ordered to pay $1.3 billion in penalties for defective mortgage loans it sold to Fannie Mae (FNMA) and Freddie Mac in the run-up to the 2008 financial crisis, a little more than half of what the U.S. had requested.
U.S. District Judge Jed Rakoff in Manhattan issued the civil penalty against the Charlotte, North Carolina-based bank today in the first mortgage-fraud case brought by the federal government to go to trial.
Countrywide and Rebecca Mairone, a former executive with the mortgage lender, were found liable in October for selling thousands of bad loans to the two government-sponsored enterprises. Mairone was ordered today to pay $1 million.
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Patricia Hurtado, BloombergMs. Hurtado may be contacted at
pathurtado@bloomberg.net
California’s High Speed Rail Project. Are We Done With the Drama?
October 22, 2014 —
Garret Murai – California Construction Law BlogProponents of California’s high-speed rail project cleared a major hurdle this past week when the California Supreme Court declined to review a California Court of Appeals ruling which held that the state’s funding plan did not violate Proposition 1A, the voter-approved initiative passed in 2008, which provided initial funding for the project.
For those like me who have been following the fits and starts of California’s high-speed rail project, it may be hard to remember how it all got started, and how we got to where we are.
California's High-Speed Rail Project
California’s high-speed rail project involves the construction of a high-speed passenger rail system running from Northern California to Southern California. The $68 billion system, expected to begin operation in 2029, will initially run from San Francisco to the Los Angeles basin in under 3 hours with train speeds capable of over 200 miles per hour. The system will eventually extend from Sacramento to San Diego covering a distance of approximately 800 miles with up to 24 stations.
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Garret Murai, Kronick Moskovitz Tiedemann & GirardMr. Murai may be contacted at
gmurai@kmtg.com
John Boyden, Alison Kertis Named “Top Rank Attorneys” by Nevada Business Magazine
July 25, 2022 —
John Boyden & Alison Kertis - Lewis BrisboisReno, Nev. (June 16, 2022) – Reno Partner John Boyden and Associate Alison Kertis were recently named to Nevada Business Magazine's 2022 list of "Top Rank Attorneys." Formerly known as "Legal Elite," this annual list represents the top talent in the legal industry across the State of Nevada.
According to Nevada Business Magazine, thousands of attorneys are nominated for the list and then scored based on the number and type of votes they receive, with votes from outside an attorney's firm receiving more weight. Finally, before being added to the list, the attorneys, and the votes they receive, go through several levels of verification and scrutiny, with each ballot individually reviewed for eligibility and every voting attorney verified with the State Bar of Nevada. The magazine has published this list for the past 15 years.
Reprinted courtesy of
John Boyden, Lewis Brisbois and
Alison Kertis, Lewis Brisbois
Mr. Boyden may be contacted at John.Boyden@lewisbrisbois.com
Ms. Kertis may be contacted at Alison.Kertis@lewisbrisbois.com
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Daniel Ferhat Receives Two Awards for Service to the Legal Community
July 19, 2021 —
Daniel Ferhat - White and Williams LLPPartner Daniel Ferhat was recently recognized by The Philadelphia Association of Defense Counsel (PADC) with the President’s Award at PADC’s Annual Meeting. This award was given in recognition of Dan’s leadership as President of PADC over the past year. Recognized as the oldest continuously operating local defense organization in the United States, PADC is comprised of over 300 attorneys and acts as a voice for its members and the clients they serve on emerging issues of interest.
Dan also received the Exceptional Performance Award from the Defense Research Institute (DRI), which is the largest international membership organization of attorneys defending the interests of businesses and individuals in civil litigation. DRI’s Exceptional Performance Award is given annually to an individual who has supported and improved the standards and education of the defense bar, and for having contributed to the improvement of the administration of justice in the public interest.
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Daniel Ferhat, White and Williams LLPMr. Ferhat may be contacted at
ferhatd@whiteandwilliams.com
Charles Carter v. Pulte Home Corporation
October 12, 2020 —
Michael Velladao - Lewis BrisboisIn Carter v. Pulte Home Corp., __Cal.App.5th__(July 23, 2020), the California Court of Appeal affirmed the entry of judgment in favor of subcontractors in connection with a Complaint for Intervention based on equitable subrogation filed by Travelers Property Casualty Company of America (“Travelers”) seeking to recover defense costs incurred in defending Pulte Home Corporation (“Pulte”) in an underlying construction defect lawsuit. The parties’ dispute arose out of Travelers’ defense of Pulte as an additional insured under policies issued to four subcontractors involved in the underlying construction defect lawsuit. Several subcontractors involved in the underlying construction defect lawsuit refused to defend Pulte based on the indemnity clauses in their subcontracts. Such clauses promised to indemnify Pulte as follows:
“all liability, claims, judgments, suits, or demands for damages to persons or property arising out of, resulting from, or relating to Contractor’s performance of work under the Agreement (“Claims”) unless such Claims have been specifically determined by the trier of fact to be the sole negligence of Pulte. . . .”
Pulte eventually settled the construction defect lawsuit and its claims against all of the subcontractors. Travelers ultimately paid $320,491.82 for Pulte’s defense and recovered $164,400 from some of the subcontractors. Travelers’ intervention in the underlying lawsuit was intended to recover the remaining $156,091.82 from the subcontractors that refused to indemnify Pulte for the defense of the construction defect lawsuit. In the underlying trial, Travelers argued that the subcontractors were obligated to pay defense costs on a joint and several basis (minus what Travelers had already recovered). The trial court did not agree and held that Travelers was not entitled to equitable subrogation for the remaining defense costs.
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Michael Velladao, Lewis BrisboisMr. Velladao may be contacted at
Michael.Velladao@lewisbrisbois.com
Voluntary Payments Affirmative Defense Does Not Apply in Contract Cases
July 16, 2023 —
David Adelstein - Florida Construction Legal UpdatesIn certain matters, there is an affirmative defense referred to as the “voluntary payments” defense. This defense states, “where one makes a payment of any sum under a claim of right with knowledge of the facts such a payment is voluntary and cannot be recovered.” Avatar Properties, Inc. v. Gundel, 48 Fla.L.Weekly D1272c (Fla. 6th DCA 2023) quoting City of Miami v. Keton, 115 So.2d 547, 551 (Fla. 1959). This voluntary payments defense could be construed as a “gotcha” defense, right? Unfair! You voluntarily made the payment with knowledge of the facts; therefore, you are s**t out of luck when it comes to recovering the potentially wrongful payment.
Well, guess what? This voluntary payments affirmative defense does NOT apply in contract disputes. This is codified by Florida Statute s. 725.04 which states: “When a suit is instituted by a party to a contract to recover a payment made pursuant to the contract and by the terms of the contract there was no enforceable obligation to make the payment or the making of the payment was excused, the defense of voluntary payment may not be interposed by the person receiving payment to defeat recovery of the payment.” Fla.Stat. s. 725.04. See also Avatar Properties, supra (explaining voluntary payment defense does not apply in contract cases and even in non-contract cases it doesn’t apply if payment made under coercion or compulsion).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
BOO! Running From Chainsaw Wielding Actor then Falling is an Inherent Risk of a Haunted Attraction
December 10, 2015 —
Laura C. Williams, R. Bryan Martin & Lawrence S. Zuckerman – Haight Brown & Bonesteel LLPIn Griffin v. The Haunted Hotel, Inc. (filed 10/23/15; certified for publication 11/20/15), the California Court of Appeal, Fourth Appellate District, affirmed summary judgment in favor of the defendant haunted attraction operator holding that the risk of a patron being frightened, then running away and falling is inherent in the fundamental nature of a haunted house attraction. The Court further determined there was no evidence the operator acted recklessly or unreasonably increased such risks beyond those inherent in the attraction.
In October 2011, Plaintiff attended The Haunted Trail attraction, which featured actors in costumes jumping out holding prop weapons to scare patrons walking along a trail through Balboa Park. The Haunted Trail also employed a scare tactic known as the “Carrie” effect, in which the patrons walk through a fake exit and suddenly a chainsaw wielding actor appears and charges at the patrons for one final jolting scare.
It was during this final scene of The Haunted Trail’s “Carrie” effect that Griffin became frightened by an actor brandishing a chainsaw causing him to suddenly run away in fear. As he was fleeing, Griffin fell and injured his wrist.
Reprinted courtesy of Haight Brown & Bonesteel LLP attorneys
Laura C. Williams,
R. Bryan Martin and
Lawrence S. Zuckerman
Ms. Williams may be contacted at lwilliams@hbblaw.com
Mr. Martin may be contacted at bmartin@hbblaw.com
Mr. Zucker may be contacted at lzucker@hbblaw.com
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Oregon Supreme Court Confirms Broad Duty to Defend
November 21, 2017 —
Theresa A. Guertin - Saxe Doernberger & Vita, P.C. BlogOriginally published by CDJ on January 13, 2017
The Supreme Court of Oregon issued a decision at the end of last year which perfectly illustrates the lengths to which a court may go to grant a contractor’s claim for defense from its insurer in a construction defect suit. In West Hills Development Co. v. Chartis Claims, Inc.,1 the Court held that a subcontractor’s insurer had a duty to defend a general contractor as an additional insured because the allegations of a homeowner’s association’s complaint could be interpreted to fall within the ambit of coverage provided under the policy—despite the fact that the policy only provided ongoing operations coverage, and despite the fact that the subcontractor was never mentioned in the complaint. The decision is favorable to policyholders but also provides an important lesson: that contractors may avoid additional insured disputes if those contractors have solid contractual insurance requirements for both ongoing and completed operations risks.
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Theresa A. Guertin, Saxe Doernberger & Vita, P.C.Ms. Guertin may be contacted at
tag@sdvlaw.com