Real Estate Litigation
From their offices in Sacramento and Irvine, California and Memphis, Tennessee, attorneys at CVM Law Group concentrate on the area of real estate law, including litigation matters involving title insurance, construction, eviction, insurance bad faith, and general litigation.
Title Insurance
The purpose of title insurance is generally two-fold: 1) to indemnify the purchaser for loss caused by a title defect, and 2) to defend the purchaser against adverse claims on the title to the property, such as from a pre-existing easement that was not disclosed at the time of purchase.
CVM represents parties in title defect and other claims, as well as contractual disputes involving insurers, insureds, and third parties in disputes surrounding the closing, coverage, and allegations of unfair practices.
Mechanics' Liens and Construction Litigation
Contractors, subcontractors, and others involved in real estate development may be able to record a lien against the property as a way to secure the debt owed and ensure that they are paid upon completion of the project. If a party then moves to foreclose on the property as a way to obtain payment, the matter will need to be resolved in a court of law.
In lieu of a mechanic's lien, a payment bond may be executed to provide a guarantee that the contractor will be paid. Likewise, a performance bond may be negotiated to ensure that the work will be completed in accordance with the terms of the contract. A stop notice is another tool by which a lien may be placed on funds in the hands of the property owner or lender. Delay claims, extra work claims, and contract defaults are all common subjects of construction litigation when completion of a project is delayed or derailed.
Escrow
Escrow litigation can arise in a couple of different ways. Funds and title deeds are commonly placed into an escrow account during a real estate transaction and not released until all conditions of the purchase contract have been met. Also, during the life of a mortgage, the mortgage company may hold funds in escrow sufficient to pay property taxes and insurance on the property. If funds are disbursed prematurely or held on too long in a transaction, or if a mortgage company holds more funds in escrow than is necessary, litigation may be needed to resolve the dispute and recover any damages for financial losses incurred.
Bad Faith
Insurance companies are entitled to make a reasonable investigation and coverage analysis as to whether a claim is valid and covered under an existing policy. In fact, sound business practices and fiduciary responsibilities to shareholders would seem to require that insurers perform a certain amount of diligence before paying a claim. However, insurance companies are bound by an implied covenant of good faith and fair dealing in every insurance contract to not act unreasonably or in bad faith in any denial of coverage or claim. A denial of coverage, refusal to defend or settle a claim with a third party, or undue processing of a claim may all be actionable as examples of bad faith, depending upon the intention of the insurer and the customary practice in the industry. Similarly, a rescission of an insurance contract in the midst of a claim may be due to uncovering false or incomplete information on the application, or it may be a bad faith attempt to avoid paying a claim. The lawyers at CVM are experienced in prosecuting and defending claims of insurance bad faith in the real estate field.
Eviction
State laws and local ordinances combine to create a complicated web of rules and procedures that must be followed in the pursuit or defense of an eviction proceeding. In addition to a tangle of laws, commercial leases can themselves be quite complex, often requiring adversarial litigation to reach a judicial determination about what the proper interpretation of lease terms and language allowing for an eviction or early lease termination. The CVM legal team is familiar with litigating many common reasons for eviction, such as:
- Nonpayment of rent
- Unlawful detainer
- Egregious nuisance
- Substantial property damage
Construction Defect
Litigating a construction defect case requires a thorough understanding of the cause of the accident and whether fault lies with the contractor or subcontractor, design professional, or other party, particularly in the case of a latent defect where the alleged defect appears months or years after the construction, requiring intensive analysis and investigation as well as involving statutes of limitations and repose to further complicate the litigation. It may be that a case of structural damage is not due to a defect at all, but rather is the fault of the owner-occupier who has overloaded a structure, failed to maintain the property, or otherwise abused or misused the real estate at issue.
California's construction defect laws include a right to repair or right to cure in many instances, which may forestall yet not necessarily prevent litigation in the end. Meanwhile, a construction defect may be attributed to any number of factors:
- Soil or slope instability
- Inadequate drainage
- Substandard or toxic building materials
- Poor workmanship
- Defective design
- Structural defects
- Improperly-poured foundation
- Faulty wiring or plumbing
- Negligent installation of HVAC equipment and ductwork
Seek Experienced Legal Representation
With decades of experience in real estate transactions and business law and litigation, the lawyers at CVM Law Group have the knowledge and skills to represent their clients' interests in negotiations and in the courtroom. For advice and representation in a real estate litigation matter in Northern or Southern California or Tennessee, contact CVM Law Group.
