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Reviving Construction Projects — How to Avoid Creating a Frankenstein Monster

Reviving dead or moth-balled projects presents risks and rewards. The rewards include a shorter ramp-up period. The risks include the revival of claims akin to the unintended creation of a Frankenstein monster. But those...more

Court of Appeals Rejects Attempted Restriction of “Mortgage Banker” Priority Provision

On February 20, 2014, the Wisconsin Court of Appeals issued an opinion interpreting the meaning of “mortgage banker” under Wis. Stat. § 224.71(3) and finding that a mortgage holder was entitled to the priority afforded under...more

Court of Appeal Confirms that Laborers and Materialmen Have Priority over Construction Lenders to Funds Used to Develop the...

A California Court of Appeal recently ruled that a construction lender must make available to stop notice claimants those amounts which the lender has already disbursed to itself on the construction loan. (Brewer Corp. v....more

Mortgage Lenders Can’t Jump Ahead of Mechanic’s Liens

In Weitz Co., LLC v. Heth, 223 Ariz. 442, 314 P.3d 569 (Ct. App. Nov. 26 2013), the Arizona Court of Appeals held that the plain language of Arizona’s mechanic lien statute, A.R.S. § 33-992(A), does not allow a lender to jump...more

There’s a Reason Why It’s Called a “Stop Payment” Notice Not a “Let Me Pay Myself First” Notice

In a decision published January 31, 2014 (Brewer Corp. v. Point Center Financial, Inc.), the California Court of Appeal (Fourth District) affirmed a trial court’s judgment holding a lender liable for contractors’ stop notice...more

In Site - Winter 2013/2014

Welcome to the Winter 2013/2014 edition of In Site. This edition covers the following topics: - Collateral warranties, third party rights and the decisions in Parkwood Leisure Ltd v Laing O’Rourke Wales and Royal...more

All About “Commitment”: CEQA Review is Not Triggered By Orange County’s AB 900 Application For State Funding To Expand Existing...

In a decision recently ordered published, the Fourth District Court of Appeal added to the growing progeny of Save Tara, and affirmed the trial court’s judgment denying the City of Irvine’s writ petition seeking to compel...more

Guarantors Beware! A.R.S. § 33-814 May Not Save You from a Deficiency Judgment

In First Credit Union v. Courtney, 309 P.3d 929, 669 Ariz. Adv. Rep. 18 (Ct. App. 2013), the Arizona Court of Appeals rejected three creative arguments that A.R.S. § 33-814 protected the guarantors from paying on their...more

Contract Provision for Judicial Reference May be Enforced Even Though Provision Does Not Specifically State Right to Jury is...

California law provides that parties to a contract may agree to use alternative dispute resolution methods, such as arbitration and judicial reference, to resolve contract disputes. A recent California appellate court...more

A Virginia Mechanic's Lien Refresher, Courtesy of Jack Bays

In February 2013 the Supreme Court of Virginia handed down its decision in Jack Bays, a mechanic’s lien lawsuit involving the landowner, several lenders, the general contractor and no fewer than eleven subcontractors....more

California Court of Appeal Strictly Enforces Carveout Guaranty

In “what appears to be an issue of first impression, not only in California, but in the entire country,” the California Court of Appeal in Series AGI West Linn of Appian Group Investors De LLC v. Eves (June 14, 2013)...more

Mississippi District Court Defers to New York Court in Bond Action

The United States District Court for the Northern District of Mississippi denied the motion of defendant ACA Financial Guaranty Corporation (ACA) to dismiss a class action complaint, finding that the issues were previously...more

Lenders Beware -- California decision may ignite next wave of lender liability litigation

In a recent decision from the California Court of Appeals entitled Jolley v. Chase Home Finance, LLC, the Court severely curtailed lenders’ ability to dispose of lender liability claims on summary judgment, thereby adopting a...more

Off the Beaten Path: The Federal Circuit Departs From Precedent in Lumbermens

On August 23, 2011, the Washington, D.C. metropolitan area was surprised and shocked by an earthquake with a magnitude of 5.8, leading to the evacuation and temporary closing of multiple public and private buildings, and...more

Lenders Beware: The Risks of Creating a Fiduciary Relationship With Your Borrower

In the wake of the collapse of the real estate market, banks across the country have seen a significant increase in cases brought by developers and individual buyers alike seeking to avoid their loan obligations on their...more

Subcontractors Take Note - Appellate Division Confirms That Construction Lender Has No Duty To Subcontractor Absent Express...

The New Jersey Appellate Division recently ruled in Vollers Excavating and Construction, Inc. v. Citizens Bank of Pennsylvania, Docket No. A-3844-10T1 (March 5, 2012), that a construction lender has no obligation to pay an...more

Root canals & Lawsuits: two things to avoid (Law Note)

No one (with the exception of sadistic dentists) likes root canals, and no one (except lawyers) likes lawsuits. In the same way you can prevent (or limit) the need for root canals through proper flossing habits, you can limit...more

Enjoining Calls on Performance Bonds: Reconstructing Unconscionability

Paper on Singapore's position with regard to enjoining of calls on performance bonds (surety bonds), with particular analysis of the addition of the ground of unconscionability as a ground for injunction. Commended by the UK...more

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