Recording “Un-Neighborly” Documents
April 03, 2019 —
Bob Henry - Snell & Wilmer Real Estate Litigation BlogIn September 2018, in Baumgartner v. Timmins, 245 Ariz. 334, 429 P.3d 567, the Arizona Court of Appeals provided further clarification on what constitutes an “encumbrance” on a property for purposes of Arizona’s statutory scheme prohibiting the recording of “false documents.” The statute, A.R.S. § 33-420, prohibits the recording of documents that a person knows to be forged, are groundless, or that contain material misstatements (or false claims). A person who claims an “interest in, or a lien or encumbrance against” real property who records such documents can be held liable for $5,000 or treble the actual damages caused by the recording (whichever is greater), A.R.S. § 33-420(A), and perhaps even be found guilty of a class 1 misdemeanor, A.R.S. § 33-420(E).
At issue in Baumgartner were neighbors fighting about CC&Rs—a typical neighborhood fight. In 2015, some of the neighbors filed suit against the Timminses for violating the CC&Rs. The Timminses did not contest the lawsuit, resulting in a default judgment. In what the Court of Appeals characterized as a lawsuit filed by the Timminses “in apparent response to the [first] lawsuit and resulting default judgment,” the Timminses created, signed, and recorded affidavits contending that the Plaintiffs in the original lawsuit were themselves “in violation of several provisions of the CC&Rs.” The Plaintiffs then filed suit again against the Timminses, this time contending that the Timminses had violated A.R.S. § 33-420 by recording the affidavits because the affidavits, the Plaintiffs contended, created encumbrances on their properties. The Apache County Superior Court agreed, and issued a final judgment nullifying the recorded documents and awarding the Timminses damages, along with their attorneys’ fees and costs.
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Bob Henry, Snell & WilmerMr. Henry may be contacted at
bhenry@swlaw.com
Unit Owners Have No Standing to Sue under Condominium Association’s Policy
February 10, 2012 —
Tred R. Eyerly - Insurance Law HawaiiIf a condominium owner suffers damage caused by a leak from another unit, may it sue the insurer for the Association of Apartment Owner (AOAO) for coverage? The federal district court for Hawaii said "no" in a decision by Judge Mollway. See Peters v. Lexington Ins. Co., 2011 U.S. Dist. LEXIS 148734 (D. Haw. December 27, 2011).
Two cases were consolidated. In each case, Plaintiffs owned condominium units at the Watercrest Resort on Molokai. Water leaking from another unit damaged Plaintiffs’ units.
Watercrest Resort was insured by Lexington pursuant to a policy maintained by the AOAO. Plaintiffs filed claims with Lexington. Lexington hired an adjustor.
Unhappy with the adjustment of their claims, Plaintiffs sued Lexington and the adjustor.
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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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Not So Fast, My Friend: Pacing and Concurrent Delay
April 25, 2022 —
William E. Underwood - ConsensusDocsWhen critical path activities are delayed by the owner (or another party), contractors will sometimes “pace,” or slow down, other activities to match the owner-caused delay. After all, why should the contractor hurry up and wait? But paced activities can often appear as concurrent delays on a project’s overall schedule. And all too often, contractors fail to contemporaneously document their efforts to pace work. Not only can this create avoidable disputes with owners and other contractors, but it can also create future roadblocks to the recovery of delay damages. This article examines the interplay between pacing and concurrent delay[1] and what contractors should do to minimize risk and preserve their rights to obtain more than a simple time extension for project delays.
Pacing versus Concurrent Delay
As a basic matter, most contracts allocate responsibility/liability for a schedule delay to the party that caused the delay. For example, if an owner is contractually required to provide equipment for a contractor to install, then the owner likely bears responsibility for any delays caused if the equipment is delivered late. If, however, the contractor was also behind schedule on other activities during this time and the project would have been delayed regardless of the owner’s late deliveries, then the delay is probably concurrent. And the contractor will generally be entitled to only an extension of time, and no other monetary relief.
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William E. Underwood, Jones Walker LLP (ConsensusDocs)Mr. Underwood may be contacted at
wunderwood@joneswalker.com
General Contractor’s Intentionally False Certifications Bar It From Any Recovery From Owner
November 03, 2016 —
Masaki James Yamada – Ahlers & Cressman PLLCIn a public works dispute in Massachusetts, a Massachusetts Court judge ruled that a general contractor could not recover any of its over $14 million claim against a public owner because it had violated its contract with the Owner by certifying that it had paid its subcontractors in full and on time when in fact it had not.[i] The case involves a contract dispute arising from a state and federally-funded project to design and construct a fiber optic network in western Massachusetts. The Owner was a state development agency established and organized to receive both state and federal funding to build a 1,200–mile fiber optic network known as MassBroadband123 in Western Massachusetts (the Project). Of that amount, $45.4 million was awarded pursuant to the American Recovery and Reinvestment Act of 2009 (ARRA). One of the stated goals of ARRA was (as its title suggests) to create jobs in the wake of the 2008 recession and to provide a direct financial boost to those impacted by the economic crisis. In the context of the instant case, that meant that, if there were to be subcontractors on the job providing labor and materials, they needed to be paid on a timely basis in keeping with the statutory purpose of stimulating the economy.
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Masaki James Yamada, Ahlers & Cressman PLLCMr. Yamada may be contacted at
myamada@ac-lawyers.com
London's Walkie Talkie Tower Voted Britain's Worst New Building
September 03, 2015 —
Neil Callanan – BloombergThe skyscraper at 20 Fenchurch Street in the City of London, nicknamed the Walkie Talkie, is the worst new building in Britain, according to a panel assembled by Building Design magazine.
The 37-story tower, designed by Rafael Vinoly, was made famous two years ago when a beam of light reflected from the building melted parts of a Jaguar sports car. The problem has since been remedied by developers Land Securities Group Plc and Canary Wharf Group Plc.
It is a challenge finding anyone who has something positive to say about this building,” Thomas Lane, editor of the magazine for architects, said in a statement on Thursday. “Londoners now have to suffer views of this bloated carbuncle crashing into London’s historic skyline like an unwelcome guest at a party from miles away.”
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Neil Callanan, Bloomberg
Construction Defects and Second Buyers in Pennsylvania
February 07, 2013 —
CDJ STAFFThe ability to sue over construction defects has typically been limited to the initial purchaser of a home. But as Kevin F. McKeegan writes in the Pittsburgh Post-Gazette, the Pennsylvania Superior Court recently expanded that to subsequent purchasers. As Mr. Keegan notes, "not only can the first buyer of a new home bring a lawsuit against a builder, but now any subsequent buyer within 12 years of the home's construction can file a claim."
Mr. Keegan, a lawyer with Meyer, Unkovic & Scott, notes that in the underlying case, the second owners of a home in Jamison, Pennsylvania filed a claim that the water infiltration violated the "implied warranty of habitability."
There are still limitations on construction defects in Pennsylvania. The suit must be filed within twelve years of completion of the construction, and a breach of implied warranty must be proven. Mr. Keegan notes that "the homeowner must show that a defect is hidden and non-obvious, that it is the result of the builder's design or construction, and that it affects the habitability of the residence."
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Construction Defect Scam Tied to Organized Crime?
July 31, 2013 —
CDJ STAFFThe Las Vegas Review-Journal reports that the initial tip-off came from Scott Canepa, a construction defect attorney who alerted the FBI about Leon Benzer’s activities in taking over homeowner boards. Canepa learned that Nancy Quon was taking part in the scheme and went to the FBI with the information. After FBI officials met with Canepa, they launched an investigation, which they named “Operation GrandMaster.”
Although a Benzer associate stated that Benzer claimed not to have ties to organized crime, and according to the Review-Journal, “preferred to think of himself as ‘just a bully,’” the case involves connections to a number of figures with ties to organized crime. Benzer with associated with John V. Spilotro, a lawyer whose uncle was an alleged overseer for Chicago organized crime operating in Las Vegas in the 70s and 80s. Another conspirator, Paul Citelli, reportedly has ties to organized crime in Buffalo.
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'Taylor Swift Is an Economic Phenomenon': CE's Q1 2024 Economic Update and Forecast
April 29, 2024 —
Grace Calengor - Construction ExecutiveOn March 27, Construction Executive presented its "2024 Q1 Economic Update and Forecast," hosted by ABC Chief Economist Anirban Basu. If you've attended previous versions of this webinar, you're familiar with Basu’s pragmatic approach to the economics of the construction industry and his penchant for predicting recession. But this quarter, he opted for an almost-optimistic approach and hinted at walking back his thoughts on recession. Read the most quotable moments, new poll results and top takeaways from the presentation below.
POLL RESULTS: Q1 2024 vs. Q4 2023 Poll 1: Which of these is the leading challenge for your company today?
Supply chain and/or materials issues
Skills/worker shortage
Insufficient demand for construction services
Availability of financing for projects/project work
None of the above
December 2023 | March 2024 |
10% |
7% |
57% |
60% |
11% |
11% |
19% |
17% |
3% |
6% |
Reprinted courtesy of Grace Calengor, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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