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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.

Lawsuits against HOAs are expensive and time-consuming for all

April 23, 2020 on 2:22 pm | In Common Interest Community, General Interest, HOA, John Tarley, State & Federal Litigation, Susan B. Tarley | No Comments

A Virginia Circuit Court case highlights the expense and time commitment required when a homeowner sues a common interest community (referred to as “HOA” in this article). Furthermore, this case illustrates that HOAs can rarely predict or control when they may be dragged into a lawsuit.

In this case, Hornstein v. Federal Hill Homeowners Association, a homeowner had her house for sale with a pending sales contract. Pursuant to Va. Code Ann. § 55-509.5, the HOA provided a disclosure packet that revealed that the homeowner’s fence was not located on her property. In fact, the homeowner’s own survey confirmed that fact. The pending sales contract fell through.

The homeowner sued the HOA in Fairfax Circuit Court for slander of title and tortious interference with contract, including a claim for “bodily injury,” and “mental anguish.” The HOA prevailed in the case, leading to the homeowner’s petition for appeal to the Virginia Supreme Court. [UPDATED: The Virginia Supreme Court refused to hear the case, meaning that the Circuit Court’s decision stands].

Another battle has been waged regarding whether the HOA’s insurance carrier had a duty to defend the HOA in the underlying litigation. When the HOA’s insurance carrier denied coverage and representation, the HOA sued the insurance carrier. The case was removed to the federal court. The 4th Circuit District Court agreed with the insurance carrier. The HOA appealed and the 4th Circuit Court of Appeals reversed the trial court and held that the insurance carrier had a duty to defend. The insurance carrier has appealed for a rehearing. [UPDATED: the insurance carrier lost its appeal and was ordered to pay the HOA $217,308.86 for the attorneys’ fees the HOA incurred].

For a brief review, the HOA provided the disclosure packet in February 2006. After the homeowner’s pending sale fell through, she sued the HOA in August 2007. As we near August 2010, the underlying case may be close to resolution, but litigation with the insurance company may be far from resolving. Based upon the amount of litigation, we can assume that the HOA’s attorneys’ fees have reached six figures. Obviously, payment for these attorneys’ fees is then passed onto the homeowners (unless the case shifts payment of the attorneys’ fees to the losing party, but even then, courts rarely award the full 100% of the incurred fees).

Many lessons can be drawn from this experience. Most importantly, HOAs need to review their insurance policies to make sure they are covered fully for worst case scenarios. Our experience has shown that “anybody can sue anybody for anything at any time.” Although the plaintiff may not win (and did not win in this case), the ensuing litigation will take abundant resources. We can help you review your documents and insurance policies with the necessary professionals to protect your HOA, and homeowner interests.

Tarley Robinson, PLC, Attorneys and Counsellors at Law

Williamsburg, Virginia

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Virginia Statute – HOAs must adopt “Cost Schedule” to recover copy costs

April 23, 2020 on 2:22 pm | In Common Interest Community, General Interest, HOA, HOA litigation, Real Estate Litigation, Susan B. Tarley, Unit Owners Association | No Comments

The Virginia Code has provisions that provide members of condominium associations and homeowner associations with the ability to request copies of books and records. The statutes have also permitted  associations to recover the costs of copying the requested books and records.

This blog post highlights a new statutory provision affecting common interest communities. On July 1, 2012, HOAs and condo associations will only be able to recover these copying costs if the association has adopted a cost schedule.

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Three Factors An HOA Should Consider When Hiring An Attorney

April 23, 2020 on 2:22 pm | In Common Interest Community, HOA, HOA litigation, Susan B. Tarley, Unit Owners Association | No Comments

Selecting an attorney is one of the more significant decisions made by the board of directors for a community association. Often times, the association makes its decision based upon price alone. Although “price” is a valid factor to consider, there are other important factors the board should review during its selection process. This article addresses three of the major considerations.

First, the board should determine the prospective attorney’s experience level in the representation of community associations. Attorneys for common interest communities are similar to the general counsel in major corporations because of the wide range of issues that arise. Extensive experience in many of the possible legal issues facing community associations should be a prerequisite.

Tarley Robinson

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Additional Tips For Seeking PPP Loan Forgiveness

April 23, 2020 on 2:22 pm | In Business Law, Business Planning, John Tarley | Comments Off on Additional Tips For Seeking PPP Loan Forgiveness

The final PPP loan regulations are not yet released as of April 23, 2020, but there are certain things we are pretty sure about: you will need to meticulously document your spending on allowable expenses in order to receive full forgiveness for your loan.

At the end of your 8 week period following your PPP loan disbursement, you will need to submit your forgiveness to your lender. Your lender will make the decision on whether a portion or all of your PPP loan is forgiven. At a minimum, your request should include:
• Written proof of payroll costs;
• Written proof of the number of full-time equivalent employees with their pay rates;
• Written evidence of invoices and payments you made on eligible mortgage, lease, and utility obligations; and
• Certification that all supporting documentation provided are true and that you used the forgiveness amount to keep employees and make eligible mortgage interest, rent, and utility payments.

You should be compiling this information from the moment you receive your loan, so you are not scrambling later on, and to ensure that the payments you made from the PPP loan proceeds comply with the restrictions. If you can put your PPP loan proceeds in another account, even better to track! If you have questions about proper documentation, contact your accountant or financial advisor.

Again, we hope this information is helpful, but please note that this blog post does NOT constitute legal or tax advice. These are simply my observations and notes based upon information I have gathered through an analysis of the CARES Act, an analysis of proposed regulations governing the PPP, and my attendance at numerous webinars given by tax and banking experts explaining the PPP.

YOU SHOULD CONTACT YOUR TAX ADVISOR AND BANK FOR PERSONALIZED INFORMATION FOR YOUR CIRCUMSTANCES.

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Citizen’s Arrest – From Mayberry to Suffolk

April 23, 2020 on 2:22 pm | In General Interest, John Tarley | No Comments

I read a story in the Virginia-Pilot in which it described an incident of Citizen’s Arrest. In the story, a fire inspector, using a flashing blue light on his car, stopped a female driver. He claimed the driver had been swerving, and he stopped her because of his concern she may have been drinking.

A Suffolk, Virginia detective witnessed the incident. After consultation with fellow police officers, the police department urged the Commonwealth’s Attorney to press charges against the fire inspector for impersonating an officer.

The Commonwealth’s Attorney declined. He cited a Virginia case, Hudson v. Commonwealth, for the legal principle that private citizens have a common law right to make a “Citizen’s Arrest.”

I will not go into all of the other complicating legal issues relating to a Citizen’s Arrest, like what obligations does a person have to obey the citizen making the arrest, what force can the citizen use to make the arrest, etc. No, my purpose is more of humorous nature, because the incident reminded me of my childhood, watching Mayberry RFD. In this particular episode, Gomer Pyle shows the proper way to make a Citizen’s Arrest of Deputy Barney Fife:


Tarley Robinson, PLC, Attorneys and Counsellors at Law

Williamsburg, Virginia

John Tarley

John Tarley

 

 

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Requests to Inspect and Copy Community Association or Company Records: Should it be this complicated?

April 23, 2020 on 2:22 pm | In Business Law, Business Planning, Common Interest Community, HOA, HOA litigation, Susan B. Tarley, Unit Owners Association | No Comments

A Virginia Beach jury found a condominium association liable for failing to permit unit owners an opportunity to inspect and copy association records. Not only must the condo board allow inspection and copying, they must pay for an audit of the association records and pay $50,000 for the unit owners’ attorneys’ fees.

These questions arise frequently. This blog post reviews the various Virginia statutes that address the right to inspect and copy records for companies, HOAs and condominium associations.

HOA Filing Information

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Who pays when a tree falls on my property?

April 23, 2020 on 2:22 pm | In General Interest, HOA, HOA litigation, John Tarley, Real Estate Litigation, State & Federal Litigation, Unit Owners Association | 2 Comments

Hurricane Irene left a lot of damage in Virginia. Although the damage was not as great and widespread as caused by Hurricane Isabel, many of us had in excess of ten inches of rain and suffered from many fallen trees. This tree fell in my back yard.

We  previously blogged about issues arising when a neighbor’s vegetation, including trees, encroaches upon our property. In that situation, we can cut the offending vegetation, including roots, back to the common property line. However, if the vegetation is also damaging our property,  the Court can order the complete removal of the offending vegetation and award us compensation for our expenses, including compensation for damages.

After Hurricane Irene, we should visit another question: who pays for damage when my neighbor’s tree falls on my property? Generally speaking, this property law question involves an issue of negligence and insurance. Each situation would require a review of the facts, and a review of your homeowner’s insurance policy, but here is some general guidance:

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Do the Virginia Rules of Evidence change settlement negotiations and mediations?

April 23, 2020 on 2:22 pm | In Construction litigation, HOA litigation, Mediation, Real Estate Litigation | No Comments

Virginia’s new codified Rules of Evidence became effective on July 1, 2012. In an article in Virginia Lawyers Weekly, five of the rules were highlighted. One of those highlighted rules was Rule 2:408, “Compromise and Offers to Compromise.” The terms of this rule differ from the terms of the Federal Rule of Evidence 408, but those differences will not be explored in this post. Instead, this blog post will review Virginia Rule of Evidence 2:408, and its possible implications for settlement discussions and mediation.

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Watch out for email scams!

April 23, 2020 on 2:21 pm | In General Interest, John Tarley, State & Federal Litigation | No Comments

Email and telephone frauds are proliferating through the attorney community, and have been redirected at other professionals. On the message board for the Virginia Trial Lawyers Association, one of my attorney colleagues provided a story from one of his clients: “a consulting engineer who frequently testifies in litigation, was retained by a bonding company in Colorado regarding a dispute with a construction company in Pittsburgh. Luckily he smelled a rat when they announced that a disbursement would be run through his company account.”

 

Email

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Neighbor Law: Tips for Avoiding Boundary Line Disputes

April 23, 2020 on 2:21 pm | In Construction litigation, General Interest, HOA, HOA litigation, John Tarley, Real Estate Litigation, Real Estate Strategies, State & Federal Litigation | No Comments

Few real estate topics cause more disputes between owners than those involving activities at a common boundary. We have reviewed boundary line disputes involving trees that straddle property lines and fences that encroach upon boundary lines.

A recent Portsmouth case highlights another issue relating to boundary lines.

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