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Exterior Building Maintenance & Window Washing Update
update posted: February 1, 2011
update approved: January 20, 2011
Re: 3514 South, LLC, v. 140 South Homeowners Assoc.
San Francisco Superior Court Case No CGC-10-501150
Travelers Policy No.: 104005378
Our File No.: 1136.005
This letter responds to your inquiry about the status of the above-referenced case. you may recall that we served written discovery in the form of special and form interrogatories and requests for production of documents upon Chap, Sprincin and 140 South. Responses are due next Thursday, January 27, 2011.
Once we receive the discovery responses, and depend on how thorough they are, we will either seek to obtain further responses or simply schedule the depositions of Sprincin personally, on behalf of himself and on behalf of Chap and 140 South.
Due to the San Francisco Superior Court calendar, trial is not scheduled until November 7, 2011. In the interim, we can propound additional discovery, refine our findings and calculations with the Helsing Group and conduct anything else that may be reasonably necessary to prosecute this action.
You are free to provide a copy of this letter to the 140 South HOA Board. Once we receive the discovery responses, we will share them with you and elicit the board members' comments.
In the interim, please feel free to contact me with any questions or comments. We will continue to keep you informed of all material developments.
Very truly yours,
McKague & Tong, LLP
update posted: February 1, 2011
update approved: January 5, 2011
Dear Karen and Members of the Board, the following is a brief update on the status of the Association’s litigation against Chariot SVN. Please be advised that the Court on its own motion, continued the Status Conference hearing from November 22 to January 24, 2011. Since the Court has not yet issued a ruling on our Application for Complex Determination, we have sent a letter to the Court’s Complex department requesting a response. While we understand the Court system is backed up, this is not a complicated application and it seems unreasonable that the Court should take more than 5 months to determine that the case meets the “complex” criteria.
In the interim, Benchmark Builders, the general contractor, has retained defense counsel and has filed an answer to the Association’s complaint, as well as a cross-complaint against Chariot SVN. We are in the process of serving special interrogatories to Benchmark to ascertain their insurance coverage arrangements with the subcontractors hired by Benchmark to perform original construction of the Development.
We will continue to apprise the Board of any updates to the case. Please feel free to contact our office if you have questions regarding the foregoing.
Feinberg Grant Mayfield Kaneda & Litt, LLP
877/520 3455
info@feinberggrant.com
update posted: January 24, 2010
update approved: January 21, 2010
As you know, in September 2009, Feinberg Grant Mayfield Kaneda & Litt was successful in obtaining relief from the Bankruptcy Court's automatic stay to pursue Chariot SVN's insurance proceeds only. Thereafter, a Motion to Amend the Complaint to add the subcontractor defendants and to add causes of action for construction defects was granted by the San Francisco Superior Court on December 15, 2009. As soon as we receive the Judge's signed Order granting the motion, we are ready to serve the Complaint on the subcontractors. Thereafter, the Defendants will have 30 days from the date of service to answer the complaint.
In addition, in response to a Subpoena served on Wells Fargo Insurance Services, we recently received copies of the Developer's insurance policies which we have submitted to our insurance coverage counsel for analysis.
On behalf of the Board of Directors and the law firm of Feinberg Grant, we thank you for your continuing cooperation and support.
Feinberg Grant Mayfield Kaneda & Litt, LLP
877/520 3455
info@feinberggrant.com
update posted: January 24, 2010
update approved: December 28, 2009
In May 2009, the Board of Directors of the Association retained the law firm of Feinberg Grant Mayfield Kaneda & Litt LLP ("Feinberg Grant"), attorneys specializing in the representation of Homeowner Associations in construction defect claims. The Feinberg Grant firm substituted in as counsel for the Association in the current lawsuit filed against the developer. Soon thereafter, in June of 2009, the developer, Chariot SVN, LLC ("developer"), filed for bankruptcy. Feinberg Grant immediately petitioned the Bankruptcy Court for relief from the bankruptcy filing, and on July 14, 2009 the Bankruptcy Court granted relief from the automatic stay to proceed against the insurance proceeds of Chariot SVN, LLC.
While the Association's original claim involved defective window washing equipment, ongoing investigation of project conditions has revealed construction defects affecting multiple additional project components. The Association accordingly petitioned the Court to permit the expansion of its existing lawsuit, and on December 15, 2009, the San Francisco County Superior Court granted the Association's motion to file an amended complaint. This amendment increases the scope of the Association's claims to include additional common areas and integrally related components and adds as defendants to the action, the general contractor and subcontractors who participated in the construction of the project. It is anticipated that these additional defendants will be served with the operative complaint in January 2010, and will be appearing in the action within approximately thirty (30) days of such service.
On a final note, as you may know, certain individuals affiliated with and/or holding an interest in the Developer of the project also own multiple separate interests in the Association. This has led to a concern among the membership that such individual(s) may run for the Association board of directors in the upcoming election, thereby creating the potential for a conflict of interest. To the extent that this conflict is realized, however, the Association's board of directors may simply form an executive litigation committee to oversee the Association's construction defect action. This committee will be authorized to interact with Association counsel and render all determinations required by the Association with respect to the prosecution of its pending construction defect claim, and will consist of members of the board of directors, excluding therefrom any interested parties.
On behalf of the Board of Directors and the law firm of Feinberg Grant, we thank you for your continuing cooperation and support.
Feinberg Grant Mayfield Kaneda & Litt, LLP
877/520 3455
info@feinberggrant.com
update posted: November 9, 2009
update approved: November 5, 2009
On October 2, 2009, the Association's attorneys, Feinberg Grant, gave notice that the bankruptcy court granted relief from the automatic stay to proceed against the insurance proceeds of Chariot SVN, LLC. Discovery has been initiated to determine the existence and limits of coverage.
The Association's attorneys also have prepared a motion to amend the present complaint to add the general contractor and subcontractors to the pending lawsuit. We are waiting for a hearing date from the court.
On behalf of the Board of Directors and the law firm of Feinberg Grant, we thank you for your continuing cooperation and support.
Feinberg Grant Mayfield Kaneda & Litt, LLP
877/520 3455
info@feinberggrant.com
update posted: October 13, 2009
update approved: September 19, 2009
In May 2009, the Board of Directors of the Association retained the law firm of Feinberg Grant Mayfield Kaneda & Litt LLP ("Feinberg Grant"), attorneys specializing in the representation of the Homeowner Associations in construction defect claims. The Feinberg Grant firm substituted in as counsel for the Association in the current lawsuit filed against the developer. Soon thereafter, in June of 2009, the developer, Chariot SVN, LLC ("developer"), filed for bankruptcy. Feinberg Grant immediately petitioned the Bankruptcy Court for relief from the automatic stay which was granted on July 14, 2009. We are currently awaiting the Bankruptcy Court to publish the Order, and thereafter, we will proceed in the State Court action against the developer.
The State Court has set a follow-up date of February 5, 2010. Prior to then, Feinberg Grant will proceed to litigate as against the available insurance proceeds of Chariot SVN, LLC. Further inspections and investigation of the property will be conducted by construction experts and it is expected that the claims will greatly expand against the developer for the construction deficiencies.
On behalf of the Board of Directors and the law firm of Feinberg Grant, we thank you for your continuing cooperation and support.
Feinberg Grant Mayfield Kaneda & Litt, LLP
877/520 3455
info@feinberggrant.com
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