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    The Greater Williamsburg area is an exciting place to live and work, especially because of the large number of entrepreneurs who have built businesses from the ground up. These entrepreneurs have taken their passion and made it their profession. Many of us want to take that step. Before you begin, you need to think of the type of business entity you want to form. Our attorneys have extensive business experience, from small one-person companies to publicly traded major corporations. Our attorneys are among the leaders in Virginia in the representation of Common Interest Communities. These communities are generally referred to as "homeowners associations," or "HOAs," and "condominium associations." In the greater Williamsburg area alone, we provide legal assistance to nearly 100 associations. Our attorneys have successfully prosecuted and defended a wide array of civil disputes involving community association covenant enforcement, commercial transactions, construction disputes, contracts, real estate matters, boundary line and easement disputes, employment matters, antitrust litigation, copyright violations, administrative proceedings, and estate issues. Real Estate law encompasses a wide variety of matters, and our attorneys have vast experience to assist you. Whether you need assistance with a commercial or residential closing, or you have questions relating to residential or commercial leasing, we provide experienced advice and counsel to our clients. Zoning law can be a complicated maze of statutes and ordinances. We have ample experience in successful applications for rezoning, variance, and special use permit requests. Finally, commercial and residential construction provide special challenges with respect to financing issues and the construction process. We serve as counsel to various financial institutions.

Real Estate Listing Agreements are Contracts – Do you know your rights and obligations?

April 23, 2020 on 2:26 pm | In Business Planning, General Interest, John Tarley, Real Estate Litigation, Real Estate Strategies | No Comments

No sooner had we posted our blog article on the enforceability of listing agreements even when they are not in writing, another recent case came to our attention. This case is from the New Kent County Circuit Court. This case is another example of the increasing acrimony between sellers and brokers in a tight real estate market.

House For Sale

Listing Agreements

 

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Employee Non-Competes: Why Must Prospective Employers Be Wary?

April 23, 2020 on 2:26 pm | In Business Law, Business Planning, General Interest, State & Federal Litigation | No Comments

We have written previously about employee “non-competes” (a/k/a covenants not to compete or non-competition agreements). You may have come across them in your own business, either by requiring them of your own employees or seeking to hire someone subject to a non-compete.   However, the area of law surrounding non-competition agreements can be tricky, and a new decision has added to the intrigue.

In DePuy Synthes Sales, Inc. v. Jones, the Eastern District of Virginia denied two motions to dismiss filed by the new employers of employees governed by non-compete agreements. DePuy employed two salespersons pursuant to employment agreements that contained non-compete provisions. They eventually left DePuy and began working for a competitor, Sky Surgical. DePuy sued the employees and Sky Surgical. This blog post examines the tortious interference of employment contract claim made by DePuy against the new employer, Sky Surgical.

employee noncompete agreement

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The Same Employer But a Different Result in this Virginia Supreme Court Case Regarding the Enforceability of Noncompete Agreements

April 23, 2020 on 2:26 pm | In Business Planning, Employment law, John Tarley, Merger & Acquisition, State & Federal Litigation | No Comments

Over the course of the past 20 years, the Virginia Supreme Court has tweaked the law governing non-compete agreements. In its latest case, the Court came full circle by invalidating a noncompete agreement that used the same language the Court had upheld 20 years earlier in a case involving the same company.

As we have written before, trial courts will enforce noncompete agreements when the agreements (1) are narrowly drawn to protect the employer’s legitimate business interest, (2) are not unduly burdensome on the employee’s ability to earn a living, and (3) are not against public policy. Importantly, the employer has the burden to prove each of these elements. When evaluating whether the employer has met that burden, trials courts should consider the “function, geographic scope, and duration” elements of the noncompete restrictions.  These elements are “considered together” rather than “as three separate and distinct issues.”

Further, if the noncompete agreement is too broad or otherwise unenforceable, a Virginia court will not rewrite, or “blue pencil” the agreement to make it enforceable. Therefore, it is important that you work with your business attorney to draft an enforceable non-compete agreement.

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Immigration and Employers – Remember your I-9 Forms

April 23, 2020 on 2:26 pm | In Business Planning, Common Interest Community, John Tarley, Merger & Acquisition | No Comments

There are many issues for entrepreneurs starting and operating their small businesses. In that light, immigration is not just a national issue involving major companies. Small businesses must be aware of government requirements, too.

Since 1986, the Immigration and Nationality Act has required employers to to verify that its employees are able to accept employment in the United States. Consequently, the I-9 form was developed. Every employee must complete an I-9 form at the time of hire. Employers are required to ensure the form is completed within three days of hire. Furthermore, even if the company engages contractors, the company could be liable if it knows the contractor employs unauthorized workers. Obviously, criminal penalties await those who fraudulently fill out the I-9 form, but civil penalties also can be levied against companies who fail to keep proper records, even if the employee is legally authorized to work in the United States.

As always, ask your attorney to make sure that your company’s legal issues are covered so that you can focus your energy on growing your business.

Tarley Robinson, PLC, Attorneys and Counsellors at Law

Williamsburg, Virginia

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Holiday Lights and your HOA

April 23, 2020 on 2:26 pm | In Common Interest Community, HOA, HOA litigation, Real Estate Litigation, Unit Owners Association | Comments Off on Holiday Lights and your HOA
Happy Holidays

The Virginia Supreme Court has issued another ruling specifying the limitations of homeowners associations to enact guidelines, rules, and regulations that exceed the scope of their authority.

We had written previously about attempts by HOAs to regulate holiday decorations. The first item on our suggested checklist to assist homeowners association was “Does the Board have the authority to regulate holiday decorations? If not, your inquiry stops here.” As it turns out, that is the basis for the Court’s decision in Sainani v. Belmont Glen Homeowners Association.

In Sainani, the association adopted guidelines for “Seasonal Holiday Decorations” (the “Guidelines”) to regulate various aspects of homeowners’ display of exterior lighting. The trial court found that the homeowners violated the Guidelines by having the “lights . . . on 24/7” for “at least 300 days a year.”

On appeal, the homeowners argued that the Guidelines exceeded the HOA’s authority and were unenforceable. The Virginia Supreme Court agreed. In essence, the Court specifically stated that “None of the covenants in the amended declaration can be construed to authorize the seasonal guidelines, and thus, the seasonal guidelines exceed the scope of the HOA’s authority.”

As we wrote in another blog post analyzing an unpublished order from the Virginia Supreme Court in the case of Shadowood Condominium Association et al., v. Fairfax County Redevelopment and Housing Authority, “Unless the . . . governing documents specifically permit the common interest community to impose the charges and/or suspension of rights for violations of the documents . . . it is likely that a court may find against the association where the owner contests such actions.” The Sainani case will have ramifications for HOAs who do not follow those guidelines.

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HOA Board Actions Without A Meeting – Community Association operations during COVID-19

April 23, 2020 on 2:26 pm | In Common Interest Community, HOA, Susan B. Tarley, Unit Owners Association | Comments Off on HOA Board Actions Without A Meeting – Community Association operations during COVID-19

Our attorneys have been asked to address a community association’s ability and process for boards of directors to make decisions without holding a meeting. Many community associations have responded very quickly to make adjustments in how they are doing business to limit contact and follow the health guidance on COVID-19. Typically, we are advising our community associations to not make decisions unless they are doing so at a board meeting. However, we are in uncharted waters and need to make sure that we are following the requirements of social distancing and isolation, and at the same time continuing the operations of the HOA, all with transparency to permit the owners in the community to know what decisions are being made.

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Another Thanks to Construction Law Musings – HOAs and Construction Defects

April 23, 2020 on 2:26 pm | In Common Interest Community, General Interest, HOA, HOA litigation, John Tarley, Real Estate Strategies, Unit Owners Association | No Comments

Richmond Construction Law attorney Chris Hill, my friend and colleague, permitted me another opportunity to blog at his award-winning blog Construction Law Musings. Chris is an outstanding Virginia attorney, and his blog is a great source of information on construction law, including the intricacies of mechanic’s liens. You can also follow him on Twitter, @ConstructionLaw.

Chris has a regular feature called “Guest Post Friday” in which he invites other bloggers to contribute to his Musings. For this blog, we wrote a post exploring the statutory warranties, provided in Va. Code § 55-79.79 of the Condominium Act, that require the Declarant to warrant “all of the common elements for two years.”

Here’s a brief excerpt of the post:

When either a commercial or residential condominium development nears the time of automatic transition, the developer and the owners face many challenges. The developer, or “Declarant,” must transfer responsibility for management, enforcement of the Condominium Instruments, and finances, amongst other responsibilities, to the new owner-controlled Board of Directors. With the pending departure of the Declarant, owners can become concerned about possible construction defects with the common elements. This blog post discusses the process and responsibilities under the statutory warranties provided by the Virginia Condominium Act.

Read the complete blog at Construction Law Musings, as well as many other informative posts on Chris’ outstanding blog. Thanks again, Chris!

Thank you

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What can an HOA do to collect past dues when a bankrupt homeowner surrenders property but the lender does not foreclose?

April 23, 2020 on 2:26 pm | In Common Interest Community, General Interest, HOA, HOA litigation, John Tarley, Real Estate Litigation, State & Federal Litigation, Unit Owners Association | Comments Off on What can an HOA do to collect past dues when a bankrupt homeowner surrenders property but the lender does not foreclose?

An all-too-common scenario occurs when a homeowners association attempts to collect past dues and the homeowner files bankruptcy. The law is clear that the bankrupt homeowner is still liable for those post-petition dues. The United States Bankruptcy Code at Section 523(a)(16) makes the homeowner liable for “a fee or assessment that becomes due and payable after the order for relief to a [homeowners association] for as long as the debtor . . .  has a legal, equitable, or possessory ownership interest in such unit.”

In other instances the homeowner decides to walk away from the property and surrenders the property to the lender. Instead of foreclosing, however, the lender simply does nothing. Therefore, the title of the property is still in the name of the bankrupt homeowner who walked away from the property, and they are not paying the assessments. The lender has not foreclosed so they are not paying the assessments. How can the homeowners association collect these past due post-petition assessments?

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HOA Case Study: A Board’s statements or conduct may establish the enforceability of its governing documents

April 23, 2020 on 2:26 pm | In Common Interest Community, General Interest, HOA, HOA litigation, John Tarley, Real Estate Litigation, Susan B. Tarley, Unit Owners Association | No Comments

An article in the Washington Post discussed a pending case in the Virginia Supreme Court regarding a dispute between property owners and a community association regarding the owners’ operation of a vineyard and retail store on their property. In an unpublished Order, the Virginia Supreme Court upheld a Fauquier County jury verdict for the property owners that had been set aside by the trial court.

Although unpublished orders do not have “precedential value or . . . significance for the law or legal system,” this case does provide us with a look at how difficult it can be for community associations to interpret their governing documents and also how a board’s previous actions may have an effect upon future enforcement of the community’s declarations and covenants. This blog post will review the facts of that case and its applicability to your HOA.

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Part 2 on Virginia’s Unauthorized Practice of Law Rules and HOAs – What is considered the unauthorized practice of law?

April 23, 2020 on 2:26 pm | In Business Law, Common Interest Community, HOA, HOA litigation, John Tarley, Susan B. Tarley, Unit Owners Association | No Comments

We blogged previously about finding guidance in Virginia’s rules on the unauthorized practice of law as they pertain to community associations. In this post, we will review Virginia opinions that address whether certain work performed by managers is the unauthorized practice of law (“UPL”).

Gavel

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