of the CACM Southern California Law Seminar & Expo Welcome Reception on March 17th at the Disneyland Hotel
The Miller Law Firm Wins Prestigious
2015 Litigator Award®
The Miller Law Firm named 2015 Litigator Award Winner®. Having been conferred this prestigious National Award, the firm ranks among the Top 1% of all lawyers for: Construction Defects Litigation.
BELLEVUE, WASHINGTON: The Miller Law Firm, a trial law firm located in San Francisco, California, was today awarded the prestigious 2015 Litigator Award® for extraordinary achievement within the field of: Construction Defects Litigation.
Justly standing as the nations most coveted symbol of "Litigation Achievement", this unrivaled annual honor recognizes trial lawyers {firms} who have attained extraordinary litigation achievement within one or more of 72 pre-defined "Practice Specialty" categories. Based strictly on "Verdict and/or Settlement" dollar achievement rather than peer popularity, the Litigator Awards® are perhaps the most rigorous and openly judged trial law rating. Simply being nominated is to be set among the elite of the profession. Those awarded are generally considered among the finest trial lawyers in the nation.
To be Award Eligible, Nominees must prove achievement of litigation "Performance Benchmarks" that includes not less than:
a). One verified "Verdicts or Settlements" of at-least $1 Million Dollars in any one Practice Specialty category within the preceding 5 year period prior to Nomination*, or
b). One verified "Verdict or Settlement" of at-least $5 Million Dollars in any one Practice Specialty category within the preceding 10 year period prior to Nomination**, or
c). One verified "Verdict or Settlement" of at-least $10 Million Dollars in any one Practice Specialty category within the preceding 20 year period prior to Nomination.
It is a feat achieved by fewer than 1% of all Lawyers, and truly a testament to each Award Recipient's remarkable performance relative to peers. Of the nearly 1.1 Million lawyers considered, only a select few per State or DMA, will achieve the distinction of being awarded annually in any given Practice Specialty*.
Winning a 2015 Litigator Award® is a "Powerful Endorsement" of superior litigation achievement that provides discerning clientele {as well as referring professionals} with a strong reason to trust their case with an Award Recipient. Moreover, it offers a testament to their remarkable performance relative to peers.
Join Sara Brown and the CAI Ladies Tea
Planning Committee for
A Day at The Races
March 31st from 1:30-4:00pm
Casa Real at Ruby Hill Winery, Pleasanton
The Miller Law Firm Recovers $1.17 Million for
Downtown Los Angeles Arts District Lofts in Under 18 Months
The Miller Law Firm has recovered $1,170,000 for a downtown Los Angeles Homeowners Association for construction defects, a per unit recovery of over $35,000.
This 33 residential unit condominium project, located in the Arts District of Downtown Los Angeles, was originally constructed in 1907. Under Los Angeles's popular Adaptive Reuse Ordinance, the original builders, Mika Construction, Inc., began a building conversion process in 2007. However, the real estate crash of 2008 caused the first builder to fold and it was finally completed in 2012 with a subsequent builder entity and real estate investment firm, which remains confidential under the settlement terms.
The project was only two years old when the Board of Directors retained The Miller Law Firm for building performance deficiencies, such as an undersized storm drain system that resulted in flooding, cracked concrete beams, slabs and exterior façade, leaks throughout the building envelope, courtyard fountains and roof, improper deck drainage, rusting at window components, and excessive sound transmission between units.
The lawsuit was filed in August of 2014 in the Los Angeles Superior Court, and a settlement was reached in less than 18 months through mediation efforts facilitated by Judge Rex Heeseman (Ret.)
According to Thomas E. Miller, CEO of The Miller Law Firm, "Many buildings like these find themselves at the mercy of the real estate crash in 2008. Any builder who converts buildings like The Lofts is responsible for construction defects, even when the CC&Rs and sales documents attempt to curtail owners' rights by calling the construction and conversion 'cosmetic' and 'as-is.' Homeowners can and should look to resources to help make their buildings whole. This was a very good recovery for what the builder's attempted to label 'cosmetic' building improvements."
According to Rachel Miller, Senior Partner of The Miller Law Firm, "Even buildings that are two or three years old can show signs of serious defects and independent experts can verify the severity and commonality of building repairs. Owners can and do have a resource in our firm to help evaluate these conditions."
If you have an HOA that is in need of independent expert evaluation under our firm's
Question: Our Association is facing major construction and repairs this year. What funding options does our Board of Directors have for covering the significant costs associated with this?
Brief Answer
Once the scope of works and cost of repair has been determined by your construction experts, the Board has several options to fund the repair process, including accessing reserve funds, levying special assessments, obtaining bank financing, and allocating construction defect recoveries. Please see additional information and restrictions below:
1. Reserve Funds
Overall Theme: The Board shall exercise prudent fiscal management in maintaining the integrity of the reserve account (Civ Code Sec. 5515)
The board may authorize the temporary transfer of moneys from a reserve fund to the association's general operating fund to meet short-term cashflow requirements or other expenses, if the board has provided notice of the intent to consider the transfer in a board meeting notice. A board may also, without a vote of the membership, borrow from reserves if Boards give notice of their intent to borrow reserve funds by listing it as an agenda item in its notice of board meeting.
The notice must include the reasons the reserve transfer is needed, some of the options for repayment, and whether a special assessment may be considered.
If the board authorizes the transfer, the board must issue a written finding, recorded in the board's minutes, explaining the reasons for the transfer, and describing when and how the money will be repaid to the reserve fund. ( Civ Code Sec. 5515(c).)
RepaymentOne Year:
(Civ Code Sec. 5515(d)) the transferred funds shall be restored to the reserve fund within one year of the date of the initial transfer, except that the board may, after giving the same notice required for considering a transfer, and, upon making a finding supported by documentation that a temporary delay would be in the best interests of the common interest development, temporarily delay the restoration.
2. Levy Special Assessments
Boards are allowed to special assess the membership up to 5% of the current fiscal year's budgeted gross expenses without membership approval regardless of any limitations that might be found in the governing documents. ( Civ Code Sec. 5605(b).)
Membership Approval:
Unless it is an emergency assessment, a special assessment over 5% requires membership approval, i.e., a majority of voting members once a quorum has been established.
(Civ. Code §5605(b).) The statute defines "quorum" to mean more than 50% of the owners of an association. Voting is done by secret ballot.
Associations are allowed to levy special assessments to replenish reserve funds.
3. Obtaining Bank Financing - Authority to Borrow
The authority for associations to borrow money is generally found in their governing documents (Bylaws or CC&Rs). It can also be found in Corp. Code Section 7140(i), which allows corporations to obtain bank loans subject to any limitations found in the governing documents.
Membership Approval:
Check your documents before you apply for the loan. Membership approval of the special assessment (for a capital improvement, repairing the common areas, etc.) may not be enough. The ballot may also require approval authorizing the board to enter into a loan agreement with a bank.
Attorney Opinion Letter:
Banks normally require an opinion letter from the association's attorney as part of the loan approval process. Boards should involve their HOA attorney from the outset to advise them about the approval process and to prepare the ballot to the membership, if needed.
It is important to note that your attorney must express an opinion to the bank about the association's authority to borrow.
4. Use Proceeds from a Construction Defect Recovery
Use funds recovered from a construction defect claim, whether in SB 800, arbitration, litigation, judicial reference or mediation.
For additional questions or further explanation of your Association's options, please contact [email protected]
What Other Boards of Directors are Saying
Property Owners and Association Managers can take Several Steps to Prepare for the Continued Storm Season
According to the Climate Prediction Center, the recent increase in temperatures does not mean the El Niño effect has passed. Experts state that El Niño conditions will continue to develop near the equator, and March through May could still bring wet weather to California.
For Association Boards and Community Managers, this gives reason to watch water intrusion calls and complaints from homeowners. The Miller Law Firm, a California based construction defect litigation firm, recommends property owners and managers take several steps to prepare for the predicted storm season:
Get an inspection proactively. This will help to inform whether repairs are necessary and what further steps should be taken to withstand an El Niño storm.
Fix any issues while they are small and the weather is still dry. Small problems can quickly turn into larger issues as wait times for repairs (and prices) increase during storms.
Institute a maintenance plan. Regular maintenance can substantially increase the life of a roof, and some damage can be avoided merely by cleaning out gutters and drains.
Act quickly. By addressing issues before the storms hit, problems can be avoided entirely or have their severity reduced. Waiting can only lead to more serious and costly problems.
Prevention is key. The best way that property managers can combat an El Niño event is by preparation in advance. During a major storm, roofing companies will be overextended with repair calls, and a small leak can quickly cause thousands of dollars in damage. Therefore, by taking steps in preparation of El Niño and ensuring roofs and decks can adequately withstand an El Niño storm, property managers can limit damage and avoid serious issues that may otherwise arise.
Contact The Miller Law Firm.If you have an HOA that is need of expert evaluation, contact Rachel Miller for more information about our SB 800 Building Audit & Due Diligence Program. (800) 403-3332 or [email protected]
As an authority in the field of construction defect litigation for 35 years, The Miller Law Firm provides the finest quality of legal representation in the resolution of construction claims. Having literally written the book, The Miller Law Firm is professionally adept at the proper approach to protecting the rights and interests of homeowners in urban mid-rise, high-rise, and mixed use associations. This signature practice, while focusing its attention in California, achieved national recognition in addressing the varied and complex issues of design and workmanship operative in faulty construction.
The firm brings to each building project decades of experience and a detailed knowledge of today's legal framework. Its expertise provides a thorough accounting in understanding the complex network of relationships between homeowners associations and the myriad of participants ultimately involved in the efficient resolution of construction defect claims.
We do more than simply stay abreast of current legal developments. We actively contribute to the legislative dialogue shaping both our profession and the industry of real estate development. In addition, The Miller Law Firm has held influential positions on professional committees and boards, including the Community Associations Institute, California Association of Community Managers, and the Executive Council of Homeowners.
We frequently present ideas at important local, state, and national industry conferences. Meanwhile the commentary and analyses of our attorneys appear regularly in journals, newspapers and publications. Today, we are also recognized as legal experts in the field of construction defects by top media forums.
This 33 residential unit condominium project, located in the Arts District of Downtown Los Angeles, was originally constructed in 1907. Under Los Angeles's popular Adaptive Reuse Ordinance, the original builders, Mika Construction, Inc., began a building conversion process in 2007. However, the real estate crash of 2008 caused the first builder to fold and it was finally completed in 2012 with a subsequent builder entity and real estate investment firm, which remains confidential under the settlement terms. 
