Builders and Owners: Have your residential construction contract reviewed before you sign it

October 30, 2014 on 1:08 pm | In Common Interest Community, Construction litigation, HOA litigation, Real Estate Litigation, Real Estate Strategies, State & Federal Litigation | No Comments

 

Construction litigation has become a time-consuming and expensive area of legal practice. Even in residential construction, attorney and expert fees, and other costs of the lawsuits can rise high into five figures. Unfortunately, in many instances, better planning and attorney review at the beginning may have prevented the bitter litigation that ensued.

Williamsburg Virginia Business Lawyers

Construction Contracts

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Rental Restrictions in HOAs permitted according to the Virginia Attorney General

October 30, 2014 on 1:07 pm | In Common Interest Community, General Interest, HOA, HOA litigation, Real Estate Litigation, Real Estate Strategies, Susan B. Tarley, Unit Owners Association | No Comments

In many HOAs, an issue arises when a homeowner purchases real estate as an investment property intending to lease the home or condo unit. In those situations, the homeowner becomes a “landlord” rather than a resident owner and the situation causes concerns for many homeowner and condominium owner associations. Many association documents contain restrictions on leasing property. In response to an inquiry, the Attorney General for Virginia has issued an official advisory opinion concerning the imposition of rental restrictions in common interest communities concluding that if the restriction is adopted correctly and for a legitimate purpose, the rental restriction is valid.

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Can an engineering firm limit its liability by contract?

October 30, 2014 on 1:07 pm | In Business Planning, John Tarley, State & Federal Litigation | No Comments

 

Maybe not, in certain circumstances. A Fairfax County judge has determined that an engineering firm cannot limit its liability by contract in a case involving a 2008 fee contract. The typical fee agreement for an engineering firm includes some form of “limitation of liability” in which the firm seeks to limit its liability “to the amount of fees paid” to the firm, whether the claim is for breach of contract or warranty, or for negligence. In the case of Dewberry & Davis, Inc. v. C3NS, Inc., the engineering services firm, Dewberry, filed a fee claim against C3NS. C3NS filed a counterclaim for breach of contract. Dewberry had a limitation of liability clause in its fee agreement. It sought summary judgment to prevent C3NS from claiming that the limitation of liability paragraph was void. The Court sided with C3NS.

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Virginia Supreme Court upholds arbitration award granted to homeowners who sued their HOA

October 30, 2014 on 1:07 pm | In Common Interest Community, HOA, John Tarley, State & Federal Litigation | No Comments

It is relatively routine for developers or “declarants” to include arbitration provisions into the declaration of restrictive covenants recorded to establish a common interest community. Generally, arbitration clauses are preferred by developers for a variety of reasons including avoiding a jury and having a say in the choice of the fact-finder. However, those decisions made by the developers have long lasting effects upon homeowner boards following transition, because it is difficult for a board to effect a change in the documents.

 

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Smokin’ in the Condo

October 30, 2014 on 1:07 pm | In Common Interest Community, General Interest, HOA, HOA litigation, State & Federal Litigation, Susan B. Tarley | No Comments

Imagine if someone told Don Draper and Roger Sterling of Mad Men that they could no longer smoke in their apartments. They would look at you curiously, smirk and light up a cigarette. But Mad Men, the television show about a Madison Avenue advertising agency is set in 1965 and as the ad for Virginia Slims said, “[we’ve] come a long way, baby.” Almost half of all adults smoked in 1965 but that percentage has dropped to 18% by 2012.

The negative health effects have been documented and the reported adverse health effects caused by second-hand smoke has resulted in smoking bans in restaurants. One of the next areas in which smoking bans have been put in place is in condominium communities. Some of the smoking bans address common elements only but others have imposed a ban on smoking in the condominium unit.

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3 tips for safe emailing with your attorney

October 30, 2014 on 1:07 pm | In Business Planning, Common Interest Community, John Tarley, State & Federal Litigation | No Comments

Obviously the use of email has changed many aspects of our world, including the practice of law. As with all new technology, we sometimes learn hard lessons. The attorney-client privilege is the foundation of effective communication between counsel and clients. Only a client can waive that privilege. Although email has far more positives than negatives, to protect attorney-client communications, use these three tips.

Williamsburg Virginia Business Lawyers

Attorney-Client Privilege

 

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Arbitration instead of Court? Be careful what you ask for

October 30, 2014 on 1:07 pm | In Business Planning, Common Interest Community, John Tarley, Real Estate Strategies, State & Federal Litigation | No Comments

Over the past 15 years or so, “arbitration” provisions have appeared with increasing frequency in a wide variety of contracts. For example, declarations of covenants and restrictions recorded for homeowners associations, construction contracts, employment contracts, and commercial leases all may contain arbitration clauses. Arbitration may be a good idea, but you should know what “arbitration” means before you agree to be bound by such a provision.

Many people confuse the terms “mediation” and “arbitration.” Mediation refers to a process whereby a third-party helps facilitate a negotiated settlement between two or more parties. A mediator does not make decisions, does not take evidence, and does not conduct hearings. Parties simply negotiate and the mediator helps foster those negotiations.

Conversely, arbitrations are conducted like regular trials, with a judge-like arbitrator (or arbitrators) making a final decision based upon the evidence presented, and hopefully the law of your jurisdiction. Appeals of an arbitrator’s decision are virtually nonexistent.

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Ban on kids playing football = housing discrimination lawsuit against Virginia HOA

October 30, 2014 on 1:07 pm | In Common Interest Community, HOA, John Tarley, Real Estate Strategies, State & Federal Litigation | No Comments

Boards of Directors are empowered by statute in Virginia and often times by the governing documents of the community association to enact rules and regulations concerning common areas, common elements, recreational facilities or other areas of association responsibility.  Rules related to the use of common areas or common elements and recreational facilities should be based on concerns about safety, sanitation and nuisance.  In certain instances a Board of Directors may want to enact a rule to address the activities of children – limiting their pool time, forbidding children under a certain age from using recreational facilities or prohibiting certain activities on common areas or elements.  Be careful, the rule you enact may violate the federal and state Fair Housing Act.

According to a Complaint filed against a Chesapeake condominium association, the association had a “Group Sports Activity” rule that banned organized sports activities in the common areas without approval of the board. Concerns were raised whether this rule banned activities such as a parent and child passing a football.The Commonwealth of Virginia’s Fair Housing Board filed a housing discrimination lawsuit against Cedarwood Condominium Association, a Chesapeake condominium association. There have not been many of these lawsuits.

 

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What Does It Mean to be on the Board of Directors of your HOA? Potential Liability (Part 2 of a Series)

October 30, 2014 on 1:07 pm | In Common Interest Community, General Interest, HOA, State & Federal Litigation, Susan B. Tarley | No Comments

We frequently are asked whether volunteer board members can be civilly liable for actions taken while a board member. This issue is of serious concern because lawsuits tend to be over inclusive, naming every possible defendant in the initial complaint. Why sign up as a volunteer board member if it could bankrupt you?

 

 

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You obtained a judgment against your construction contractor, how do you collect?

October 30, 2014 on 1:07 pm | In Construction litigation, General Interest, John Tarley, State & Federal Litigation | No Comments

Sometimes your dispute with your contractor goes all the way to court and you obtain a judgment. However, sometimes the contractor does not have the ability to pay the judgment, so financially, you are out-of-pocket your judgment damages plus your attorneys’ fees. You may have one last alternative to recover at least a portion of your losses through the Virginia Contractor Transaction Recovery Fund (the “Recovery Fund”).

Williamsburg Virginia Business Lawyers

Williamsburg Courthouse

 

 

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