Foreclosing Junior Lienholders and Recording A Lis Pendens
July 13, 2020 —
David Adelstein - Florida Construction Legal UpdatesWhen you foreclose on a construction lien, there are a couple of pointers to remember.
First, you want to make sure you include junior lienholders or interests you are looking to foreclose (or you want to be in a position to amend the foreclosure lawsuit to identify later). The reason being is you want to foreclose their interests to the property. “[J]unior interest holders are a narrow class of mortgagees whose interest in the underlying property is recorded after the foreclosing contractor’s claim of lien is filed. This class is routinely joined to the construction lien enforcement action under section 713.26 to allow the construction lienor to foreclose out the junior lienholder’s interest in the property encumbered by the construction lien.” See Decks N Sunch Marine, infra.
Second, you want to record a lis pendens with the lien foreclosure lawsuit. Failure to do so could be problematic because Florida Statute s. 713.22(1) provides in part, “A lien that has been continued beyond the 1-year period by the commencement of an action is not enforceable against creditors or subsequent purchasers for a valuable consideration and without notice, unless a notice of lis pendens is recorded.”
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Lake Texoma, Texas Condo Case may go to Trial
February 05, 2014 —
Beverley BevenFlorez-CDJ STAFFA lawsuit that’s created a “four-year legal battle” over alleged construction defects at the Diamond Pointe Condominium Tower in Lake Texoma, Texas may soon be going to trial, according to KTEN News. A lawyer representing the Diamond Pointe condominiums stated that “he has 15 witnesses lined up for a two-week trial.”
KTEN News reported that according to court papers, “the Association alleges issues with the elevator, doors not opening properly, cracks, water leaks, and septic containment system leaks over the past decade.” Furthermore, the Association president Dan Baucum said to KTEN, “There were some foundation repairs that we needed to do and there are some problems with the building. It was not built to the specifications, at least that's what we're alleging, and that has allowed some water seepage in certain areas.”
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Insurer’s Duty to Defend: When is it Triggered? When is it Not?
February 18, 2015 —
Zach McLeroy – Colorado Construction LitigationIn Colorado it is well recognized that an insurer has a broad duty to defend its policyholder against pending claims. An insurer’s duty to defend is triggered when the underlying complaint against the insured alleges any set of facts that might fall within the coverage policy. Greystone Construction, Inc. v. National Fire & Marine Insurance, Co., 661 F.3d 1272, 1284 (10th Cir. 2011). Even if the insurer’s duty to defend is not clear from the pleadings filed against the insured, the insurer’s duty to defend is triggered if the claim is potentially or arguably within the policy coverage. Id. If there is any doubt as to whether a theory of recovery falls within the policy coverage, such doubt is decided in favor of the insured and the insurer’s duty to defend is triggered. Id. In order to avoid this duty to defend, an insurer must show that an exemption to the policy applies and that no other basis exists for coverage under the policy.
In Cornella Brothers, Inc. v. Liberty Mutual Fire Insurance Company, 2014 WL 321335 (D. Colo. Jan. 29, 2015), the Court was to determine whether Liberty Mutual Fire Insurance Company (“Liberty Mutual”) had a duty to defend a lawsuit filed against its insured, Cornella Brothers, Inc. (“Cornella”). The underlying lawsuit alleged construction defects at a recharging facility. Upon being named a party to the underlying litigation, Cornella provided notice to Liberty Mutual and demanded that Liberty Mutual defend Cornella.
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Zach McLeroy, Higgins, Hopkins, McLain & Roswell, LLCMr. McLeroy may be contacted at
mcleroy@hhmrlaw.com
Seeking the Urban Lifestyle in the Suburbs
March 05, 2015 —
Beverley BevenFlorez-CDJ STAFFAs the ‘burbs become more urbanized, the definition of city is changing. Builder Magazine reported that while builders have responded to buyers who wanted an urban lifestyle, “what nearly all of them have learned in the process is that ‘city’ doesn’t mean what it used to. Neither does ‘suburb.’ In fact, nearly every builder that added a post-recession ‘urban’ division has found that home buyers in search of an urban lifestyle aren’t married to living downtown. For many, it seems it’s not ‘the city’ they want at all—it’s the lifestyle.”
Leigh Gallagher, assistant managing editor of Fortune and author of The End of the Suburbs: Where the American Dream is Moving, told Builder, “People don’t necessarily want to live in Manhattan. They want a little bit of Manhattan sprinkled right near them.”
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Last Call: Tokyo Iconic Okura Hotel Meets the Wrecking Ball
August 26, 2015 —
Komaki Ito & Andreea Papuc – BloombergTokyo’s iconic nod to Japanese Modernism, the Hotel Okura, will bid farewell to its last guests next week and face the wrecking ball, despite petitions from around the world to save it.
The 1960s-era hotel, which has welcomed international dignitaries and inspired a throng of admirers eager for preservation, will close its doors Aug. 31 to make way for a gleaming new hotel rebuilt in time for the 2020 Olympics, at a cost of about 100 billion yen ($836 million).
“What’s odd about the Okura is that it’s a perfect embodiment of ‘60s Modernism, and it represents that very first wave of new development in the region,” Tyler Brule, editor in chief of Monocle magazine, who spearheaded a campaign that included a petition with almost 9,000 signatures, said in an e-mailed response to questions. “For this reason alone, it deserves to be preserved.”
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Komaki Ito, Bloomberg and
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Contractor to Repair Defective Stucco, Plans on Suing Subcontractor
February 21, 2013 —
CDJ STAFFThe contractor for the Manatee County Judicial Center will be replacing the defective stucco on the building, but they have stated that they intend to go after the subcontractor who initially installed the defective stucco. The contractor, Balfour Beatty LLC, has said they will pay for the repairs, but Steve Holt, an executive of the firm said that “we have initiated a lawsuit against the subcontractor, who we believe was substantially or completely responsible to recover those funds.” Mr. Holt named Commercial Plastering as the subcontractor responsible.
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Client Alert: Catch Me If You Can – Giorgio Is No Gingerbread Man
November 26, 2014 —
Steven M. Cvitanovic, Jesse M. Sullivan, & Colin T. Murphy - Haight Brown & Bonesteel LLPIn Giorgio v. Synergy Management Group, LLC (2014) Case No. B248752, a California Court of Appeal held in an opinion published on November 6, 2014, that the Los Angeles County trial court did not abuse its discretion in permitting service by publication on Defendant John Giorgio ("Giorgio") after numerous attempts to find his current address produced a single address in Los Angeles from which mailed service was returned. The Court ruled that publication in a Los Angeles newspaper was proper because Plaintiff had a reasonable belief that service by publication in that county was most likely to give actual notice to the party to be served.”
In this intentional tort action, Synergy Management Group, LLC ("Synergy") alleged in its Complaint that Giorgio converted assets of Synergy's assignor by submitting false expense reports which resulted in the misappropriation of the assignor's assets. Synergy personally served Giorgio with the original Complaint at a North Carolina airport and Giorgio failed to respond. Synergy subsequently filed a First Amended Complaint and attempted service via an address in the Netherlands. Again, Giorgio did not respond. Synergy then filed a request for entry of default against Giorgio which was entered that day.
Reprinted courtesy of Haight Brown & Bonesteel LLP attorneys
Steven M. Cvitanovic,
Jesse M. Sullivan and
Colin T. Murphy
Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com; Mr. Sullivan may be contacted at jsullivan@hbblaw.com; and Mr. Murphy may be contacted at cmurphy@hbblaw.com
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Pennsylvania: Searching Questions Ahead of Oral Argument in Domtar
October 08, 2014 —
Robert Caplan – White and Williams LLPIf you have been following our coverage of Liberty Mutual Insurance Company v. Domtar Paper Co., you will recall that the Supreme Court of Pennsylvania decided on May 29, 2014 to hear the subrogated insurer’s appeal,1 despite the Superior Court’s holding against the subrogated insurer—based primarily on its own defective case law2 —and its denial of reargument, presumably due to the insurer’s briefing follies.3
The parties in Domtar, as well as numerous amici curiae (friends of the court),4 have submitted their respective briefs over the last few months, and the Supreme Court has scheduled oral argument to take place on October 8, 2014 in Pittsburgh, Pa. The Court has framed the issue as: “Does Section 319 of the Pennsylvania Workers’ Compensation Act, 77 P.S. § 671, allow the employer/insurer to step into the shoes of the insured employee to subrogate against the tortfeasor?”5
There are three possible outcomes in Domtar.
The first (and easiest) possible outcome for the Supreme Court would be to punt to the Pennsylvania General Assembly for a decision on the issue. Workers’ compensation legislation, perhaps more than any other type of legislation, “creates a highly structured balancing of competing interests.”6 It is basic civics that the legislature has a “superior ability to examine social policy issues and determine legal standards so as to balance competing concerns.”7
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Robert Caplan, White and Williams LLPMr. Caplan may be contacted at
caplanr@whiteandwilliams.com