More on the Vegas Case...

A former property manager is now coming forward saying she saw problems with the person at the center of the HOA investigations, Leon Benzer. New video and phone calls show some violent hired muscle willing to cross the line.

Allegations are flying back and forth in this case. Now there's proof it could get a lot worse.

From rigged elections and cushy contracts, to junkets to Cabo San Lucas and six tough guys acting as enforcers who would rough up anyone that would get in the way. The tale is the videotape, and it's one tale Diane Wild wishes she could forget.

"You recognize bad when you hear bad," she said.

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Why Scuppers Need to Be Flashed on the outside wall

I posted a couple pictures of a job we're doing in Grover Beach earlier this week; there is dry-rot and structural damage, quite a bit and it's all because of (mostly) the scuppers allowing water past them, as seen in this picture.

You can see the rusted plate right below the opening, building paper is visible, but no counter flashing was installed over the scupper, which would allow the lather to put paper behind, then down over the counter-flashing...

This $50.00 to install item, by deleting it, caused $5,000 in damages...

Insist your scuppers get counter-flashed on the outside, it's one of those differences between me and my competitors...I put them in, most of my competitors don't.

For a job done correctly every time, where, when it comes to waterproofing, compromise is not an option , call me, Bill Leys at 805-801-2380

Iowa Supreme Court Extends Implied Warranty of Workmanlike Construction to Subsequent Homebuyers

Wow, I thought California was tough on defects...Iowa has a 15 year defect law that extends to subsequent buyers too...

Posted by Dave Seitter on October 1, 2008
October 01, 2008
Iowa Supreme Court Extends Implied Warranty of Workmanlike Construction to Subsequent Homebuyers

The Iowa Supreme Court recently held that a subsequent buyer of a home could recover from the home builder for defective construction under an implied warranty of workmanlike construction in the case of Speight v. Walters Development Co., Ltd., 744 N.W.2d 108 (Iowa 2008). The facts revealed that a newly constructed home was sold to the original buyer in 1995. The home was subsequently sold twice, with the plaintiffs purchasing the home on August 1, 2000. Sometime after purchasing the home they noticed water damage and mold which a building inspector determined was the result of a defectively constructed roof and defective rain gutters. The homeowners filed suit against the home builder on May 23, 2005 alleging a breach of the implied warranty of workmanlike construction. The implied warranty of workmanlike construction is designed to protect an innocent home buyer by holding the experienced homebuilder accountable for the quality of construction.

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Nevada Supreme Court rules on construction defect lawsuit

DEl Webb faces more than 700 homeowners ona construction defect suit after the court ruled in the owners favor...

By Cy Ryan

Mon, Sep 29, 2008 (5:49 p.m.)

CARSON CITY – An estimated 700 owners of homes in the Sun City Summerlin Community in Las Vegas can join in a construction defect suit, the Nevada Supreme Court has ruled.

They are part of a group of 1,200 owners that have sued on grounds effects exist in the exterior stucco of their residences.

The developers, including Del Webb Communities, Inc., maintained the 700 could not be part of the suit because they were not the original owners of the property.

But the court, in a unanimous opinion written by Justice Jim Hardesty, said the interpretation by the developers leads to “unreasonable results.”

The 1,200 owners sued the Webb company; Nevada State Plastering, MS Concrete Co., Pratte Development Co., and Dean Roofing Inc. They maintained that the 700 owners were not the original purchasers and were not entitled to join in the suit.

But Hardesty wrote that “the apparent fact that many homeowners in the underlying constructional defect action are not the original owners of their homes does not preclude those homeowners from obtaining the remedies available under the law for any constructional defects present in their homes.”

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Governor Signs Priority Legislation to Strengthen California's Struggling Housing Industry

Today's news, Arnie knows how to write his name on bill!

No seriously, Arnold signed legislation...

Assembly Bill 2738 will reduce the defense costs of lawsuits filed against trade contractors in construction defect claims. It also will ensure that builder-controlled insurance policies are fair and equitable and include adequate limits to protect trade contractors and consumers in construction defect situations.

"Through the leadership of Assemblymember Jones, trade contractors, home builders and insurance brokers worked out a compromise that will allow the parties involved in a construction defect lawsuit to quickly and efficiently manage and resolve the alleged defective claims," added Diede. "And, best of all, California consumers positively will benefit from this legislation."

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FEDS SEARCH MORE BUSINESSES IN FRAUD CASE IN NEVADA....

This article is reprinted in whole from ReviewJournal.com...we hope they in the name of education and free press and that we give them full credit for all information contained within...you can read the article at ReviewJournal.com by clicking our headline to go to their site...besides, theere is more to read there on this issue.

Looks like what happens in Vegas ain't staying in Vegas...


CORRUPTION INVESTIGATION: Agents pursue HOA records

Board members, lawyers, construction firms scrutinized

By ADRIENNE PACKER
REVIEW-JOURNAL

In its sweeping investigation into homeowners associations, the federal government is digging up documents and correspondence related to association board members, attorneys and construction companies, according to a search warrant issued in the probe.

During searches of seven common-interest communities governed by homeowners associations, FBI agents sought ballot lists, ballots, envelopes and nomination forms.

Authorities are investigating whether individuals were planted on homeowners association boards to funnel business stemming from construction defect lawsuits to certain attorneys and construction companies.

In one case, according to a source close to a construction company alleging it was frozen out of the bidding process to fix construction defects, the owner of a property management company referred so many cases to the same law firm she was rewarded with a trip to Cabo San Lucas.

Agents are searching homeowners association records and ballot information dating back to 2001. The properties listed on one search warrant include Vistaña, Chateau Versailles, Pebble Creek, Park Avenue, Sunset Cliffs, Chateau Nouveau and Mission Pointe.

The government also seeks seven years of correspondence involving 43 people including Lisa Kim, president of the property management firm Platinum Community Services, which was raided by agents Wednesday. Some of the others include current and former homeowners association board members around the valley.

An attorney for Platinum, Blaine Beckstead, said Thursday that the warrant Platinum was served with on Wednesday did not include the names of Kim or any other Platinum employee. The Review-Journal verified Thursday night that Kim, who could not be reached for comment, was not listed on the warrant served at that location.

Agents are also interested in documents related to political consultant Steve Wark, who served as president of the Vistaña Homeowners Association, as well as prominent construction defect attorneys Scott Canepa and Nancy Quon.

Being named in a warrant does not necessarily mean individuals were involved in wrongdoing. No arrests were made as a result of the raids.

Canepa and Quon were unable to be reached for comment.

Wark did not sound surprised that his name was listed in the warrant. He was president of the Vistaña homeowners association between late 2005 and fall 2007, he said.

Quon was one of the attorneys who represented the association in its 2005 lawsuit against Rhodes Ranch. The company fought Rhodes over faulty plumbing and other problems.

"I was president of the association, and I would expect at some point that people need to talk to me," Wark said.

He said he wasn't involved in any wrongdoing and that he has not been contacted by law enforcement.

Search warrants were executed Wednesday on nine valley properties, including a building on Bertsos Drive, near Flamingo Road and Arville Street, which is owned by Silver Lining Construction owner Leon Benzer. Federal agents are also after contracts and invoices related to Benzer's construction company.

But a source close to Silver Lining Construction said that the company was not involved in any wrongdoing.

Instead, the source said, it was another firm, Draeger Construction, that monopolized the construction defect rehabilitation industry, freezing out other bidders.

According to the source, competitors of Draeger, including Silver Lining, are looking into filing a federal anti-trust lawsuit against the construction company, property managers and attorneys. The gist of the complaint is that Draeger has monopolized the market because it is in cahoots with the property managers and attorneys.

Draeger Construction is listed in one of the warrants.

A message left for Draeger representatives was not returned Thursday.

According to the source, one property management company, Castle Management, referred all construction defect complaints to a local law firm which would then suggest to the homeowners board that it hire Draeger Construction to do tests and make repairs.

Other competitive bidders, such as Silver Lining, are not even considered even though they may offer the best deal, the source said.

At one point, the law firm treated Castle Management owner Diane Wild on a trip to Mexico, the source said.

Wild did not return calls seeking comment.

Draeger Construction landed the jobs in part because it showered homeowners association board members with gifts, the source said. But it also pitched itself as the only company that could provide properties with certain materials, weeding out other bidders.

Review-Journal writer Lawrence Mower contributed to this report. Contact reporter Adrienne Packer at apacker@reviewjournal.com or 702-384-8710.