| Name: Austen Koberstein | Profession: Law office |
| Relationship: | Country: USA |
| Why Parties Engage in Real Estate Litigation
Copyright © 2007 Austen Koberstein Owning a home is a big part of the American Dream. For many people, this will be their ultimate investment. Therefore, it is no wonder that homeowners do not blink twice when it comes to protecting their most valuable possession. These days, real estate litigation is to the property owner, what the mamma bear is to her cub. Real estate litigation has become front and center in the news, thanks to a man named Donald Trump. When city officials from Palm Beach, Florida proclaimed that the American flag he was flying on his property violated zoning laws (among other things), he decided to sue them rather than take down his flag. Trump's lawsuit accuses the city of "selectively enforcing its ordinances" since flags in other parts of the city are also in violation. Trump stated in October, "The day you need a permit to put up the American flag, that will be a sad day for this country." The outcome of the lawsuit remains to be seen, but let's hope "The Donald" is right. Trump is not alone in his frustration over seemingly petty issues involving real estate. A number of people found out the hard way that their neighborhood Homeowners Associations (HOAs) have some pretty ridiculous stipulations in their Covenants, Codes and Restrictions (CC&Rs). For instance, an elderly lady in Long Beach, California, who walked with a cane, racked up hundreds of dollars in fees for simply walking her cocker spaniel on a leash through her condominium's lobby. Apparently, the HOA rules stated that all dogs must be carried. A California couple found themselves in real estate litigation because their HOA foreclosed on their home because they had failed to pay their HOA dues. One of them had fallen seriously ill and they had neglected to pay the $120 annual fee for the first time in 6 years. Instead of alerting the couple, the HOA gave them 30 days to vacate the premises. Luckily, a real estate litigation attorney stepped in to help them and managed to save their home. Homeowners Associations are also notorious for not following their own rules. One Florida woman's HOA tried to have her removed from the community's swimming pool because she was wearing a thong bikini. They went so far as to call the police. However, there was nothing in the CC&Rs stating that thong bikinis could not be worn at the swimming pool. The police left without any incident. This is a classic case of abuse of authority. She is now suing her HOA for emotional distress as well as negligence of some of their own contractual obligations. As further proof of the bullying tactics used by some HOAs, one newly formed HOA in Arizona tried to subject current lot owners in the subdivision to mandatory membership. However, through real estate litigation, the current homeowners in the neighborhood were able to prevent this from happening. It seems there were no recorded deed restrictions outlining this so-called required membership. Conflicts with homeowners associations are not the only issues handled through real estate litigation, though. There are numerous, more serious situations in which this type of litigation comes into play. One such example has to do with boundary disputes between lot owners. Encroachment issues are usually discovered when a property changes hands or when fences are put up between houses. While no one likes the thought of beginning a legal battle with the neighbors next door, property lines do matter. Real estate litigation is a logical option in cases where there is an uncooperative party involved. Also, title issues can be a very serious matter. Nothing can hinder a property exchange quicker than discovering an unrecorded deed or an outstanding lien on the property in question. Real estate litigation is often involved in clearing up what is sometimes called a "clouded" title. Above are some of the most common reasons parties engage in real estate litigation. However, people can turn to this type of litigation for help in resolving almost any problem involving real estate. Buying a home or other property is a huge investment. Protecting this asset as much as possible only makes good financial sense. Sometimes a little legal help is all it takes to prevent the American Dream from turning into a personal nightmare. About The Author: Written by: Austen Koberstein. The Law Offices of Joseph J. Nardulli serve business and corporate clients in Orange County and Southern California. They specialize in real estate litigation and business litigation. Learn about litigation or arbitration at www.JosephNardulli.com. Located at Newport Beach, CA
The Pros of Business Mediation Copyright © 2007 Austen Koberstein Business mediation is becoming a very popular approach used to settle disputes in the business community. These disagreements may come between business partners or even between two different businesses (this is referred to as B2B). No matter what the business relationship is, mediation has several advantages over a public legal battle. Anyone who operates his or her own business knows that time is money. Business mediation can save the business both. It can save time if both parties are genuinely sincere in trying to work out their differences. Sometimes only one mediation session is needed to help resolve the conflict. This is surely a timesaving option as compared to spending months in an attorney's office and/or in court. Also, meeting only once or twice is absolutely cheaper than paying attorney fees, court costs, and deposition fees. With mediation, the client only pays for the actual time spent in the mediation sessions, even if the meeting was scheduled for a longer period of time. Confidentiality can be very important in the business world. A company's reputation can mean the difference between success and failure. When a business is having internal problems, the last thing they need is for the battle to become common knowledge. Information such as this could scare away potential clients, or even be used by a competitor to take away current business associates. In a legal dispute, court documents are public domain and can be accessed by anyone who wants to view them. Mediation is a much better option for businesses. In this forum, the dispute is handled privately, behind closed doors. A disinterested third-party will hear the issues in question from each side's perspective. He will then work with both groups to find possible solutions and/or compromises. A skilled, creative mediator will often help his clients find a middle ground that hadn't been thought of before. Once an agreement is reached between the parties, hands are shaken and business resumes, without the further complication of public scrutiny. In a court case, there is usually one winner and one loser. Both sides present their cases to the judge and he alone decides the outcome. The business partners have no control in the decision making process. Someone goes away from the proceedings happy and the other person leaves feeling frustrated and angry. The case is decided but the business relationship is ruined. The goal of mediation is to create a win-win situation. Since both parties come to the meeting willing to give and take a little, this is very often the outcome. Even though each side may have had to give in on one point or another, the fact remains they were able to work together to find a solution. This type of communication is essential in a successful business partnership. With mediation, an agreement is reached while preserving the business relationship. This is perhaps the most important outcome of the mediation process. Some may wonder if the mediation agreement is binding? The answer is, yes, it is. Once both parties agree, a contract can be drawn up, signed, and will be legally binding. A contract such as this can even be used to address possible future problems before they even happen. So, what happens if an agreement is not reached? Can information used in the mediation be brought up in a court case? For this question, the answer is a resounding no! All parties involved in the mediation process are required to sign a confidentiality agreement. This means that nothing that is said or discovered during the mediation process can be used as evidence in a court case. Therefore, the only question left to answer is, what is there to lose by choosing mediation over a legal battle? Obviously the answer is, nothing! Business mediation is a fast, inexpensive, confidential process that most often results in a win-win situation for everyone involved. Business reputations are not at risk and relationships remain in tact. If a resolution is not reached, at least the effort has been made, and there will be no negative repercussions as a result. Interestingly, even Bill Gates looked to mediation during Microsoft's very publicized legal battle with the Justice Department and 19 of the United States. Unfortunately, in this case, mediation was not very effective. Of course, there was very little incentive for Gates to try to appease his accusers. So in the end, unless you are a monopoly-holding millionaire with nothing to lose, a quick, private compromise is probably more preferable to a public three-ring circus. |
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