Troutman Sanders LLP: Construction Owner, General Contractor and Subcontractor Held Liable For Sub-Subcontractor Failure to Procure Required Liability Insurance

A recent decision by the Georgia Court of Appeals opens up a new (and potentially troubling) avenue for relief in cases involving personal injury and property damage caused by downstream subcontractors on a construction project. If not overturned, this decision would expose Georgia owners, prime contractors...

Troutman Sanders LLP: CFPB Proposes New Rules for Mortgage Servicers

By John C. Lynch , David N. Anthony , John F. Costello, Jr. and Virginia Bell Flynn On April 9, 2012, the Consumer Financial Protection Bureau (CFPB) announced a proposal for mortgage servicing rules that it plans to issue this summer. Richard Cordray, Director of the CFPB, stated that "for too...

Troutman Sanders LLP: West Virginia Attorney General Opens New Office – Commissions Loan Review “SWAT” Team To Target Mortgage Problems

By Ashley L. Taylor, Jr. , John C. Lynch and Jason E. Manning On April 3, 2012, West Virginia Attorney General Darrell McGraw announced plans to open an office in Martinsburg, W.Va., to target "mortgage problems" in the northern portion of the state. The new office will be funded with settlement...

Troutman Sanders LLP: Important Maryland Legislation Update - Recordation Tax on Indemnity Deeds of Trust

By M. Kevin McCusty , Margaret "Ann" Ann Brown , R. Craig Fitzenreiter , Kimberly Hargrove and Jackson W. Prentice Indemnity deeds of trust (IDOTs) have historically been used in commercial finance transactions secured by real property located in the State of Maryland to avoid the payment...

Troutman Sanders LLP: 11th Circuit Upholds Bankruptcy Court’s Finding that Payment to Lender by Borrower Subsidiary Was a Fraudulent Transfer

By Martin W. Taylor and Meghan Canty Sherrill The 2009 bankruptcy court decision commonly known as the TOUSA decision caused shock waves throughout the lending community as it called into question any transaction in which a non-borrower has paid money, pledged collateral or provided a guaranty in...

Troutman Sanders LLP: Maryland Indemnity Deeds of Trust (IDOTs) to Become Subject to Recordation Tax

By M. Kevin McCusty , Margaret "Ann" Ann Brown , R. Craig Fitzenreiter , Kimberly Hargrove and Jackson W. Prentice On May 22, 2012, Maryland Governor Martin O'Malley signed into law the State and Local Revenue and Financing Act of 2012 which, among other things, makes indemnity mortgages...

Troutman Sanders LLP: Top Ten Changes to California Mechanic’s Lien Law

The California Legislature's complete recodification of the California mechanic's lien laws takes effect on July 1, 2012. 1 Here is a brief description of the top ten revisions to help those in the construction industry understand and comply with the new requirements. Definitions. Numerous...

Troutman Sanders LLP: Negotiating and Exercising Rights of First Refusal

By Sonia Kaur Bain , Daniel N. Anziska , Kevin P. Wallace and Clara W. Mak Including a Right of First Refusal (ROFR) provision in a lease or other real estate contract is significant since a holder of such ROFR has essentially locked in a future right to exercise an option to purchase the property...

Troutman Sanders LLP: CFPB Releases Rule Aimed at Reforming Force-Placed Homeowners’ Insurance Practices

By David N. Anthony , Alan D. Wingfield , Nicholas R. Klaiber and Virginia Bell Flynn On January 17, 2013, the Consumer Financial Protection Bureau (CFPB) released a rule creating stringent requirements for servicers imposing force-placed insurance on homeowners. A summary of the rule from the CFPB...