Las Vegas Sun

November 21, 2009

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More construction defect suits filed

One of the occupations in Las Vegas that appears to have good job security is for construction defect attorneys, for both plaintiffs and defendants.

Despite the slowdown in homebuilding locally, plaintiffs' attorneys continue to hit the industry with lawsuits and those cases are likely to drag on for years.

Look for continued complaints by homebuilders that these cases typically are about generating fees for attorneys as opposed to fixing homes; while the homeowner lawyers will argue the builders wouldn't be sued if they didn't build defective homes or at least promptly fixed problems.

Here are some of the more recent cases:

-- Some 300 homeowners are suing Pulte Homes' Del Webb Communities Inc. in a case that appears to focus on Sun City Anthem in Henderson. At issue are alleged defects in roofs, stucco, concrete flatwork, HVAC lines, drywall, paint trim, baseboards, sinks, trusses and walls. That case was filed by attorneys Paul Terry Jr., John Stander and Jory Garabedian of the firm Angius & Terry LLP.

-- Emerson Ashley filed what is proposed to be a class-action complaint alleging defects in 83 homes in the Summer Gate development, including in three Trophy Club at Paradise subdivisions. The defendants are Trophy Club at Paradise East, Primack Homes Inc., Carina Corp. and Paradise-Robindale LLC. Paradise-Robindale is controlled by Consolidated Mortgage, which financed development of the project. The suit alleges defective roofs, leaking windows, dirt coming through windows, drywall and stucco cracking, stucco staining, water and insect intrusion through foundation slabs and other problems. It claims the defendants were notified of the problems but have not fixed them. That suit was filed by attorneys Duane Shinnick, Eric Ransavage and Megan Chodzko of the firm Shinnick, Ryan & Ransavage.

-- The Grand Teton Village Community Association sued Beazer Homes Holding Corp. alleging defects in the association's common areas and that Beazer has failed to correct the problems. That suit was filed by attorneys Roger Grant, Charles Litt and Johnpaul Fortin of the firm Feinberg Grant Mayfield Kaneda & Litt.

The defendants either could not be reached for comment, declined comment on the allegations of construction defects or said they could not comment because they had not seen the suits.

***

Alaska Airlines announced new nonstop service between Bellingham, Wash., and Las Vegas starting June 25. The flights will operate on Thursdays, Fridays and Sundays linking Washington state and the Vancouver, British Columbia, area to Las Vegas. Horizon Air and Alaska Airlines will also continue to offer four-times-daily Bellingham-Las Vegas service via Seattle. Alaska competes on the Bellingham-Las Vegas route with Las Vegas-based Allegiant Air.

Alaska Airlines is offering $59 one-way fares on the new nonstop route for tickets purchased by April 22 for travel through Aug. 30. The airline also is offering Las Vegas vacation packages for as low as $208 per person, which includes round-trip airfare and two nights at a hotel.

***

Aruze Gaming America Inc. named Sam Basile as vice president, legal & compliance, and general counsel.

Basile has served as vice president and general counsel for Gaughan Gaming, Las Vegas Dissemination Co. and The Regent, Las Vegas; and was associate general counsel at Mirage Resorts and associate corporate counsel at Aristocrat Technologies.

Kent Young is general manager of Las Vegas-based Aruze Gaming America. It's part of Aruze Corp., which makes slot machines.

***

Hip-Hop star and MTV News correspondent Sway Calloway has signed on to host a rock band competition at Harrah's Entertainment Inc. properties around the country, including a competition next week at Harrah's Las Vegas.

Calloway will host the four regional competitions and the Atlantic City competition for the Harrah's and MTV Games' "Total Rock, Total Rewards Rock Band Competition."

Harrah's said nearly 500 bands have registered to compete and nearly 43,000 people have visited the competition's Web site, www.harrahs.com/rockband.

Harrah's said winning bands from the initial competition will compete in celebrity-judged regional competitions in Las Vegas on April 16, the Chicago area on April 24, New Orleans April 30 and Atlantic City May 7. The finals are in Atlantic City May 8 with the winning band earning $10,000.

***

Tinoco's Kitchen

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Casino Enterprise Management Magazine named the winners of its 2008 Great Women of Gaming Awards. To win, the women must have demonstrated exceptional achievement in going above and beyond job responsibilities, commitment to their companies and co-workers, contributions to the industry, commitment to mentoring; and strong overall life balance.

The proven leader award winners are:

- Cath Burns, Vice President, Asia-Pacific and Managing Director, Bally Macau

- Libby Francisco, Chief Operations Officer, Tohono O'odham Gaming Enterprise

- Jana McKeag, President and Co-Owner, Lowry Strategies

- Cynthia Kiser Murphy, President and COO, New York-New York Hotel & Casino

- Linda Roe, Vice President of Business Development & Client Relations, Thalden-Boyd-Emery Architects

The rising star award winners are:

- Michelle Chatigny, Vice President of Compliance, International Game Technology

- Catina Moore, Senior Manager of Operations, WMS Gaming

- Valerie Morris, Regional Vice President of Sales, Communications & Community Relations, Harrah's Entertainment

- Treena L. Parvello, Director of Marketing and Public Relations, Tohono O'odham Gaming Enterprise

- Jennifer Roberts, Associate Attorney, Gaming and Regulatory Department, Lionel Sawyer & Collins Las Vegas

The judges included: Brenda Boudreaux, vice president of product management, International Game Technology; Dona Cassese, creative director of global marketing communications and operations, Aristocrat Americas; Tracey Chernay, senior vice president of sales & marketing, Transact Technologies; Christie Eickelman, senior director of worldwide marketing, Gaming Laboratories International; Christie Modlin, tribal chair, Iowa Tribe of Oklahoma; Shelia Morago, executive director, Arizona Indian Gaming Commission; Courtney Muller, group vice president, Reed Exhibitions; Debra J. Nelson, vice president of corporate diversity & community affairs, MGM Mirage; Mary Lynn Palenik, director of development, research & analysis, PricewaterhouseCoopers LLP; and Lynn "Nay" Valbeauna, vice chair, San Manuel Band of Mission Indians.

***

Nevada State Bank said it added a consumer loan program to defer payments for 90 days on new and existing loans.

"We know that some consumers need just a little relief to gain footing on their financial commitments," Chief Executive Dallas Haun said in a statement. "This program would enable them to take the time to do so without the worry of missed payments or late fees. We have great options out there for businesses and we know there are consumers under similar economic stress. We’re working to find potential solutions for them and hope this might be helpful in some situations."

Nevada State Bank said it also recently reached out to 2,300 local business owners, inviting them to apply for a line of credit at special reduced rates with an accelerated approval process.

"While we must continue our prudent lending practices and guidelines, we do want to get the cash flow out to the local economy," explained Haun. "We see the entrepreneurs and small business owners as the key factor in reinvigorating the economy. My colleagues and I are constantly looking for new ways to reach out and help them through tough times. We have already modified the loan structure for 500 of our clients."

***

The Nevada Restaurant Association and the Nevada Hotel & Lodging Association are holding the 19th Annual Epicurean Affair April 23 at the Flamingo Las Vegas.

VIP admission is $150 per person and begins at 6 pm. General admission is $100 per person and begins at 7 pm. World-renowned chefs from all over the city will prepare their signature creations and more than 100 of Las Vegas's restaurants and bars will be represented at the event benefiting the culinary educational programs of the two associations.

For sponsorship information, contact Desiree DeCastro at ddecastro@nvrestaurants.com or call the NvRA at 878-2313.

To buy tickets, call the NvRA at 878-2313 or the Flamingo box office at 733-3333. Tickets can also be purchased online at www.nvrestaurants.com .

Discussion: 4 comments so far...

  1. AND THE TRUTH SHALL SET YOU FREE

    Under the organized plan by the Nevada Home Builders Association (NHBA) builders are not going to fix homes until homeowners file lawsuits. This will allow the builders to file a cross complaint against all subcontractors on the job site whether the subcontractor has liability or not. They can do this because each subcontractor is forced to sign a contract with the builder that includes a "hold harmless clause." If subcontractors fail to sign this clause they will not receive a contract.

    The builders wrap all these subcontractors insurance companies around themselves as a financial shield to keep them from paying any liability. Subcontractors are being billed by the builders to pay for the builders legal team, the builders customer service employees and overhead and profit for all these cost.

    The more subcontractors the builders draw into feud the more money is available to protect the builder and increase their profits under these lawsuits. In this case even subcontractors who did everything right are being called to the table by the BUILDERS... only for the builders protection and profit...surprise, surprise, surprise...

    In one such case the builder charged their subcontractors and the subcontractors insurance companies over $120,000 in cost, and only paid the homeowners and their legal teams $20,000 dollars. Leaving $100,000 for the builders operating cost...and a new source of profits. Two years later the homeowners have not received their money, while the builder has collected their money.

    Builders are screwing their own subs.

    In another case the KB Home and their subcontractors settled with homeowners in a Chapter 40 case that took almost three years. The homeowners signed the agreement in January 2009 and the homeowners still have not received their money for repairs needed.

    The builders are still screwing the very homeowners that bought their homes.

    Here is the truth to this nasty business. Ask Pulte to name the subcontractors that they are cross suing in the claim filed for homeowners in Sun City Anthem. Then ask Pulte if these same subcontractors are being used by Pulte in their new home construction division. The answer is yes. Pulte is suing the very contractors that they are still using to build their new products.... does this make since to any normal individual? of course not.. it is a joke. It shows how big of a joke this whole idea that the builders are being harmed by construction defect lawsuits.

    Now builders are asking the legislators to bail them out.. and remove the Chapter 40 law that would require a builder to fix the crap they built....

    BUILDERS: Build it right and you can't be sued...
    AND: repairs should not be a profit center for this ailing industry.

  2. Seems to me that had the job been done right the first time there wouldnt be no law suites? Anybody ever think of that?

  3. Simple Solution:

    Homeowner finds an issue.

    Homeowner calls Nevada State Contractors Board (Not a Lawyer or So Called Expert). Contractors Board authority extended to match Statue of Repose and Statue of Limitations.
    Nevada State Contractors Board (true neutral expert) inspection takes place and State determines if an issue with Builder, Subcontractor and Homeowner present is valid.
    Contractors Board advises Builder/Subcontractor to make repair or no repair for Homeowner.

    (Issue bigger than Contractors Board i.e.- Settling, Structural, Slab, Roof etc. advises homeowner to get an Attorney. No need for extra fees as a real Attorney and real Construction Experts will jump at the chance.) Brings in only the true parties at that time. No Extra Fees or Costs it's all settled by the true cost of the issue.

    Builder/Subcontractor make the repair and Nevada State Contractors Board approves HO should be happy if not they can still sue. No Extra Incentive of Fees and Costs for Law Firm. Keeps everyone's hands in their own pockets. Builder/Subcontractor does not fix Nevada State Contractors Board takes away their license and puts them out of business. Believe me it will get the issues fixed. No need for Attorney or Construction Expert as 90%+ of all true items will be repaired.

    Remember no matter whom builds something, we are all humans. Human hands with manmade products will never be perfect.

    All true rights are preserved for the Homeowner, all good businesses stay in business, 90% of true issues fixed (no more frivolous issues), Homeowner saved the long wasteful process of Chapter 40, Chapter 40 not needed thus saving the State's legal system tons of wasted money on CD Claims, real attorneys will have plenty of work in itself and the Homeowner the true issue will be much happier!!!

    Forget the Chapter 40 process all of you as we all know it is Driven By the Money!

    It's all about the MONEY and nothing to do with the Homeowner.

    "The Kitec issue is not the fault of the Builder or Subcontractor but about a product. Its bigger than that of the Nevada State Contractors Board and needs the courts to settle. What's not truly fair is the Builder and the Subcontractor are left holding the bag. Kitec was used all over the US and it seems the fittings corrode in our very nasty water. Product Liability issue and we all know it."

    Stop all the non-sense in these Blogs.

  4. mc-mc John,

    John your way off base once again!!! You defend this process because you make your living praying off of the Homeowner. Exactly like the Attorney. You are so quick to state that all homes are built in correctly that you cannot even hear yourself speak (or write).

    If you read LV1Team you would see the point of the Kitec Issue. The Nevada State Contractors Board only has to go out and see that is a product defect issue and advise Homeowner to call a law firm. They don't need a Brain Surgeon i.e. you to get involved.

    Fees and Costs - Any good Law Firm will take a case if it has merit. Today they don't have to have any merit. The Chapter 40 process is broken which in turn brings out the vultures that prey on Nevadan's. These fixes won't put you or any Attorney out of business but they will have to bring true issues to the surface and leave all the frivolous (fake) issues behind.

    Yes contract law does not seem quite fair for the Subcontractor as you point out. But in today's environment everyone is happy to just have a job. How about you putting some of your efforts since you are so keen on the law to lobby Carson City and get these changes done for the Subcontracting industry?

    You go into great explanation of the issues of the Chapter 40 process and admit that the Homeowner does not get his issues fixed for YEARS. How can you sit and state later that the Chapter40 process works. How can it WORK??? Put the Nevada State Contractors Board in place first. True issues will be fixed and frivioulus issues will never be started. Again, You admit this!!!! READ IT! Its your own words!!!

    LV1Team is very correct and makes sense. Keep your hand out our pockets!

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