Dealing With Condominium Construction Loan Defaults

Numerous reports have documented the softening condominium market in New York and other large cities resulting from the excess capacity of expensive units. The softening could lead to developers not meeting their repayment milestones and ultimately to defaults, workouts or foreclosures. Because of the unusual nature of condominium construction lending, lenders need to be cognizant of certain issues unique to condominium financing.

Condominium financing is different from most other kinds of lending, particularly in New […]

By | February 24th, 2020 ||

McMillin Homes Constr., Inc. v. Nat’l Fire & Marine Ins. Co.

In McMillin Homes Constr., Inc. v. Nat’l Fire & Marine Ins. Co., 35 Cal. App. 5th 1042 (2019), the appellate court reversed the trial court’s judgment, finding that a subcontractor’s insurer owed a duty to defend the additional insured general contractor in a construction defect suit even though the additional insured endorsement excluded coverage for “property in the care, custody or control of the additional insured.”

McMillin Homes Construction, Inc. (“McMillin”) was the developer and general […]

By | February 23rd, 2020 ||

Do You Want to Pay your Subcontractor’s Employee’s Wages?

The simple answer is “Of course not!”.  But are you taking any precautions to make sure that it doesn’t happen to you?

How can this happen?

We’ve all heard the stories of a subcontractor that failed to pay its laborers prevailing wages on a Davis Bacon project.  Typically, the Department of Labor catches this failure to properly pay employees in an audit of the project. If the subcontractor doesn’t have the financial resources to pay its […]

By | February 19th, 2020 ||