Legal Advice Blog: Legal Advice, Case Insights, & Local Law Information

Commercial construction projects might involve remodeling an existing facility to meet the needs of new business tenants. They also include scenarios where a landowner hires a commercial construction firm to erect an edifice or expand an existing building on previously vacant land. A commercial construction project can represent a massive financial investment on the part of an organization, landlord or property owner. It can also be a major source of revenue for construction firms and the professionals that they hire. Typically, commercial construction projects begin with the negotiation of a very thorough contract. The process unfolds in stages, and the client often does not pay the full value of the invoice for the work until the construction firm completes the project. The vast majority of commercial construction agreements move forward with minimal conflict. However, some cause major legal disputes. The following are some of the most common reasons that commercial construction leads to conflict. SIGNIFICANT CONSTRUCTION DELAYS Particularly when a business or entrepreneur needs commercial facilities to operate a business, delays in project completion can be a major setback. Construction delays could be the result of poor planning, unexpected project complications or disruptions in the supply chain. Regardless of what causes the delayed completion of the project, construction companies may face pushback from frustrated clients who cannot operate their businesses profitably until the completion of the project. UNPROFESSIONAL WORK Commercial construction projects do not always feature the same prestige finishing touches as high-end residential projects. Still, many companies seeking to erect or improve commercial facilities have specific standards they expect the construction company to meet. Whether the customer-facing spaces look sloppy and dark or there are issues with crucial systems, like the electrical wiring, work that does not conform to current professional standards could lead to significant disputes. DEVIATION FROM CONTRACT REQUIREMENTS Regardless of what current practices are in the construction sector, construction professionals and businesses need to prioritize the wishes of clients. Clients might request specific materials or may provide guidelines for the aesthetic or practical standards by which they intend to evaluate the finished project. It is necessary for construction firms to fulfill contractual obligations. Any significant changes to the project or deviations from the contract likely require communication between the construction firm and the client and then written approval of the changes to prevent litigation. The parties embroiled in a construction dispute may sometimes need to go to court to resolve their conflicts. Reviewing contract terms can be a good starting point for those concerned about a disagreement related to a commercial construction project that may be headed for court.

Someone’s primary residence is one of their most valuable assets. They may have made a down payment worth thousands of dollars to purchase the property followed by months of regular payments toward the principal and interest accruing on their mortgage. Homeowners often also reinvest in their property by improving it slowly while they live there. From updating the electrical systems to improving the landscaping, those investments could represent tens of thousands of dollars in income and could substantially improve the fair market value of the home. Unfortunately, all of those investments could be at risk if someone faces foreclosure. When does a homeowner have to worry about a lender foreclosing and gaining ownership of the home where they live? OWNERS MUST MISS MULTIPLE PAYMENTS There are numerous regulations limiting foreclosure attempts for the protection of homeowners. For example, lenders typically cannot foreclose just a few days after a single missed payment. Most foreclosure proceedings require that a homeowner miss at least four consecutive payments before the home is at risk. At that point, A lender must send them written notice. Proper communication between mortgage lenders and property owners is a key component of the foreclosure process. Lenders need to advise people of the risk of foreclosure and provide them with an opportunity to catch up on their mortgages. PEOPLE CAN FIGHT BACK AGAINST FORECLOSURE Foreclosure does not occur instantaneously. As previously mentioned, it requires mandatory written communication between the lender and the property owner. The lender must also initiate legal action to foreclose on the property and assume ownership over it. Homeowners facing foreclosure may have several viable options for defending themselves during that process. For example, they may be able to establish in court that the lender violated procedural requirements. Other times, they may have proof that they have made at least one of the payments that the lender claims to have not received. In some cases, owners can potentially negotiate with the lender before the foreclosure goes to court to modify their loan and protect themselves from foreclosure. Exploring every option can be beneficial for those facing residential foreclosure proceedings, or the risk of them. Know that the team at Goodkin APC can help homeowners explore their options for defending against a potential foreclosure if you are in need of assistance.

Someone’s primary residence is one of their most valuable assets. They may have made a down payment worth thousands of dollars to purchase the property followed by months of regular payments toward the principal and interest accruing on their mortgage. Homeowners often also reinvest in their property by improving it slowly while they live there. From updating the electrical systems to improving the landscaping, those investments could represent tens of thousands of dollars in income and could substantially improve the fair market value of the home. Unfortunately, all of those investments could be at risk if someone faces foreclosure. When does a homeowner have to worry about a lender foreclosing and gaining ownership of the home where they live? OWNERS MUST MISS MULTIPLE PAYMENTS There are numerous regulations limiting foreclosure attempts for the protection of homeowners. For example, lenders typically cannot foreclose just a few days after a single missed payment. Most foreclosure proceedings require that a homeowner miss at least four consecutive payments before the home is at risk. At that point, A lender must send them written notice. Proper communication between mortgage lenders and property owners is a key component of the foreclosure process. Lenders need to advise people of the risk of foreclosure and provide them with an opportunity to catch up on their mortgages. PEOPLE CAN FIGHT BACK AGAINST FORECLOSURE Foreclosure does not occur instantaneously. As previously mentioned, it requires mandatory written communication between the lender and the property owner. The lender must also initiate legal action to foreclose on the property and assume ownership over it. Homeowners facing foreclosure may have several viable options for defending themselves during that process. For example, they may be able to establish in court that the lender violated procedural requirements. Other times, they may have proof that they have made at least one of the payments that the lender claims to have not received. In some cases, owners can potentially negotiate with the lender before the foreclosure goes to court to modify their loan and protect themselves from foreclosure. Exploring every option can be beneficial for those facing residential foreclosure proceedings, or the risk of them. Know that the team at Goodkin APC can help homeowners explore their options for defending against a potential foreclosure if you are in need of assistance.

Regulatory compliance is crucial to the success of any modern business. The failure to adhere to both state and federal regulations could lead to a loss of licensing or financial penalties. As a result, executives and business owners are often familiar with existing statutes that apply specifically to a particular industry. However, they also need to stay up to date on the regulations that apply to their business, as they change all the time. For example, a law passed by federal lawmakers in 2021 just took effect on the first of the year. The Corporate Transparency Act (CTA) was a bipartisan piece of legislation that created a new requirement for certain businesses. Organizations may need to file a report with federal agencies or could be at risk of large fines of up to $10,000 for non-compliance. WHAT BUSINESSES MUST FILE A REPORT? As the name implies, the CTA specifically applies to corporations and other businesses where ownership is not readily evident. Limited partnerships and limited liability companies (LLCs) are also required to file a report under the CTA. Companies must disclose the identities of all individuals with a beneficial ownership interest (BOI) to the Financial Crimes Enforcement Network (FinCEN). WHAT CONSTITUTES A BENEFICIAL OWNERSHIP INTEREST? The CTA provides a very clear definition of BOI. The company filing the report must include identifying information about any investor who has at least a 25% ownership interest in an LLC, corporation or other business with an opaque structure. The report should also include details about who filed the paperwork to form the company. WHEN IS THE REPORT DUE? Businesses already operating as of January 1st, 2024 have until the beginning of 2025 to file their initial reports. Businesses formed after the CTA took effect must make ownership disclosures during the startup process. Additionally, updated reports are necessary anytime new investors meet the requirements for having a BOI in the company. It is very easy for those focused on the operations of a business to overlook changes in the law that could end up costing them quite a bit of money. Reaching out to the team at Goodkin APC can help business owners, executives and investors better ensure ongoing regulatory compliance even as the law evolves.

Regulatory compliance is crucial to the success of any modern business. The failure to adhere to both state and federal regulations could lead to a loss of licensing or financial penalties. As a result, executives and business owners are often familiar with existing statutes that apply specifically to a particular industry. However, they also need to stay up to date on the regulations that apply to their business, as they change all the time. For example, a law passed by federal lawmakers in 2021 just took effect on the first of the year. The Corporate Transparency Act (CTA) was a bipartisan piece of legislation that created a new requirement for certain businesses. Organizations may need to file a report with federal agencies or could be at risk of large fines of up to $10,000 for non-compliance. WHAT BUSINESSES MUST FILE A REPORT? As the name implies, the CTA specifically applies to corporations and other businesses where ownership is not readily evident. Limited partnerships and limited liability companies (LLCs) are also required to file a report under the CTA. Companies must disclose the identities of all individuals with a beneficial ownership interest (BOI) to the Financial Crimes Enforcement Network (FinCEN). WHAT CONSTITUTES A BENEFICIAL OWNERSHIP INTEREST? The CTA provides a very clear definition of BOI. The company filing the report must include identifying information about any investor who has at least a 25% ownership interest in an LLC, corporation or other business with an opaque structure. The report should also include details about who filed the paperwork to form the company. WHEN IS THE REPORT DUE? Businesses already operating as of January 1st, 2024 have until the beginning of 2025 to file their initial reports. Businesses formed after the CTA took effect must make ownership disclosures during the startup process. Additionally, updated reports are necessary anytime new investors meet the requirements for having a BOI in the company. It is very easy for those focused on the operations of a business to overlook changes in the law that could end up costing them quite a bit of money. Reaching out to the team at Goodkin APC can help business owners, executives and investors better ensure ongoing regulatory compliance even as the law evolves.

If a business ever faces litigation, there could be reason to worry about significant financial consequences. Many people have heard the claim that approximately 90% of all civil lawsuits settle. Some researchers claim that the 90% figure is a gross exaggeration. Research does indicate that settlement rates vary between different court jurisdictions and even different types of lawsuits. Still, a significant percentage of business-related lawsuits do eventually settle outside of court. Even those abiding by the most conservative estimates could agree with the statement that a majority of all lawsuits settle or get dismissed by a judge. Why do so many business lawsuits settle out of the courts? SETTLING IS OFTEN MORE COST-EFFECTIVE Even in scenarios where businesses or their insurance companies maintain that the defendant is not to blame for a situation, they could potentially still agree to settle the matter outside of court. They may do this to keep costs low, as the expense involved in litigating can extend multiple times beyond the cost of negotiating and settling. BUSINESSES DON’T WANT THE PUBLICITY Lawsuits brought by consumers who claim they got hurt by a dangerous product, allegations of abuses made by former employees and even claims of nonpayment by vendors could do real damage to a business’s reputation. Allegations made an open court become part of the public record and could harm a company’s reputation, even if the organization eventually defeats the lawsuit that it faces. Settlements, even those that require mediation to achieve, are typically much more private and might even include confidentiality clauses for the parties embroiled in the dispute. SETTLEMENTS PRESERVE WORKING RELATIONSHIPS Two businesses hoping to work together in the future or an individual who might want to use an employer as a reference later usually prefer to resolve disagreements as amicably as possible. A settlement could lead to far less long-term damage to a working relationship than litigation that goes all the way to trial. Although filing a lawsuit is sometimes necessary to move a conflict forward, those representing businesses often need to be ready to consider settlement opportunities. Learning from the actions of other businesses can help those running organizations achieve optimal outcomes for their effort.

If a business ever faces litigation, there could be reason to worry about significant financial consequences. Many people have heard the claim that approximately 90% of all civil lawsuits settle. Some researchers claim that the 90% figure is a gross exaggeration. Research does indicate that settlement rates vary between different court jurisdictions and even different types of lawsuits. Still, a significant percentage of business-related lawsuits do eventually settle outside of court. Even those abiding by the most conservative estimates could agree with the statement that a majority of all lawsuits settle or get dismissed by a judge. Why do so many business lawsuits settle out of the courts? SETTLING IS OFTEN MORE COST-EFFECTIVE Even in scenarios where businesses or their insurance companies maintain that the defendant is not to blame for a situation, they could potentially still agree to settle the matter outside of court. They may do this to keep costs low, as the expense involved in litigating can extend multiple times beyond the cost of negotiating and settling. BUSINESSES DON’T WANT THE PUBLICITY Lawsuits brought by consumers who claim they got hurt by a dangerous product, allegations of abuses made by former employees and even claims of nonpayment by vendors could do real damage to a business’s reputation. Allegations made an open court become part of the public record and could harm a company’s reputation, even if the organization eventually defeats the lawsuit that it faces. Settlements, even those that require mediation to achieve, are typically much more private and might even include confidentiality clauses for the parties embroiled in the dispute. SETTLEMENTS PRESERVE WORKING RELATIONSHIPS Two businesses hoping to work together in the future or an individual who might want to use an employer as a reference later usually prefer to resolve disagreements as amicably as possible. A settlement could lead to far less long-term damage to a working relationship than litigation that goes all the way to trial. Although filing a lawsuit is sometimes necessary to move a conflict forward, those representing businesses often need to be ready to consider settlement opportunities. Learning from the actions of other businesses can help those running organizations achieve optimal outcomes for their effort.

A breach of contract can be very expensive for the business affected. The failure to complete a project or deliver materials could slow down an organization’s fulfillment of its own obligations. Sometimes, companies may have to idle production lines or absorb losses because they must source services or materials at the last minute for a premium price. Executing written contracts with vendors, contractors and service providers may help diminish the likelihood of a significant breach of an agreement. If a breach occurs anyway, the business may need to take the matter to civil court. Breach of contract lawsuits can lead to compensation for damages or orders of specific performance. Companies that include penalty clauses in their contracts could both deter breaches more effectively and more fully recoup losses triggered by contract issues. HOW PENALTY CLAUSES WORK Contracts may include terms that impose specific financial consequences or liquidated damages for a material breach of the contract. Late fees charged for delays in payment are an example. Other times, companies may have much more extensive policies that could cost the other party thousands for a contract violation. When used appropriately, penalty clauses can serve as a powerful deterrent to contract non-performance and other violations. The business facing the contract violation could automatically demand payment based on the penalty clause and take legal action if the other party remains non-compliant and refuses to pay the penalty. DO CALIFORNIA COURTS ENFORCE PENALTY CLAUSES? California has many employee and consumer protection laws that can affect the viability of penalty clauses in some contracts. For example, recent court rulings have raised questions about the practice of increasing interest rates on consumer lines of credit when people miss payments. Businesses could have trouble enforcing certain penalty clauses against consumers in the wake of recent rulings. Many other penalty clauses and contracts requiring liquidated damages are still potentially valid and enforceable in the California civil courts. Those who know there are financial penalties for contract non-compliance may be less inclined to violate a contractual agreement. Businesses that integrate the right terms into their contracts can minimize their risk of major contract defaults and can benefit from more options for recourse should one occur. In these ways, seeking legal guidance to draft custom contracts can help organizations more effectively protect against operational disruptions and losses.

A breach of contract can be very expensive for the business affected. The failure to complete a project or deliver materials could slow down an organization’s fulfillment of its own obligations. Sometimes, companies may have to idle production lines or absorb losses because they must source services or materials at the last minute for a premium price. Executing written contracts with vendors, contractors and service providers may help diminish the likelihood of a significant breach of an agreement. If a breach occurs anyway, the business may need to take the matter to civil court. Breach of contract lawsuits can lead to compensation for damages or orders of specific performance. Companies that include penalty clauses in their contracts could both deter breaches more effectively and more fully recoup losses triggered by contract issues. HOW PENALTY CLAUSES WORK Contracts may include terms that impose specific financial consequences or liquidated damages for a material breach of the contract. Late fees charged for delays in payment are an example. Other times, companies may have much more extensive policies that could cost the other party thousands for a contract violation. When used appropriately, penalty clauses can serve as a powerful deterrent to contract non-performance and other violations. The business facing the contract violation could automatically demand payment based on the penalty clause and take legal action if the other party remains non-compliant and refuses to pay the penalty. DO CALIFORNIA COURTS ENFORCE PENALTY CLAUSES? California has many employee and consumer protection laws that can affect the viability of penalty clauses in some contracts. For example, recent court rulings have raised questions about the practice of increasing interest rates on consumer lines of credit when people miss payments. Businesses could have trouble enforcing certain penalty clauses against consumers in the wake of recent rulings. Many other penalty clauses and contracts requiring liquidated damages are still potentially valid and enforceable in the California civil courts. Those who know there are financial penalties for contract non-compliance may be less inclined to violate a contractual agreement. Businesses that integrate the right terms into their contracts can minimize their risk of major contract defaults and can benefit from more options for recourse should one occur. In these ways, seeking legal guidance to draft custom contracts can help organizations more effectively protect against operational disruptions and losses.

The behavior of a neighbor can directly influence someone’s use of a property. For example, if a neighbor pollutes the soil or causes damage to a tree near a property line, those actions could negatively impact the resale value of adjacent properties. There are laws in California that allow a property owner to take legal action when someone else damages the value of their property. In some cases, such scenarios could justify civil litigation. Private nuisances are grounds for a lawsuit filed against a neighboring property owner. Public nuisances are also potentially harmful to property values and could lead to prosecution. What are the differences between public and private nuisances? PRIVATE NUISANCES AFFECT FEWER PEOPLE The scope of impact is the main factor separating public and private nuisances. A private nuisance might involve someone engaging in rude or offensive behavior that impacts other people. A private nuisance is essentially the unreasonable or unlawful use of a property that interferes with a neighbor’s rights. Actions that affect people’s health or their ability to use their own property as they see fit, like keeping a dangerous and aggressive dog unchained in the yard, could also constitute a private nuisance. Actions that are offensive to the senses, including making unpleasant odors or being visibly nude on private property, could also constitute a private nuisance. A reasonable person would generally need to agree that the behavior is offensive or inappropriate. Public nuisances tend to affect multiple neighbors or the entire neighborhood. The impact on the multiple parties affected does not have to be exactly the same for conduct to constitute a public nuisance. Operating a drug house is a public nuisance, as is engaging and prostitution out of a residential property. Even loud parties that require police intervention late at night could be a form of public nuisance. State prosecutors can bring charges against those who become public nuisances. Prosecution isn’t possible for private nuisance allegations in most cases, but litigation can be an option. Homeowners can file a lawsuit against an adjacent property owner whose actions affect their quiet enjoyment of their property or its potential resale value. Ultimately, seeking legal guidance and learning more about the rules that govern real estate disputes between neighbors, including nuisance claims, may benefit those trying to navigate a difficult situation involving a neighbor.

The behavior of a neighbor can directly influence someone’s use of a property. For example, if a neighbor pollutes the soil or causes damage to a tree near a property line, those actions could negatively impact the resale value of adjacent properties. There are laws in California that allow a property owner to take legal action when someone else damages the value of their property. In some cases, such scenarios could justify civil litigation. Private nuisances are grounds for a lawsuit filed against a neighboring property owner. Public nuisances are also potentially harmful to property values and could lead to prosecution. What are the differences between public and private nuisances? PRIVATE NUISANCES AFFECT FEWER PEOPLE The scope of impact is the main factor separating public and private nuisances. A private nuisance might involve someone engaging in rude or offensive behavior that impacts other people. A private nuisance is essentially the unreasonable or unlawful use of a property that interferes with a neighbor’s rights. Actions that affect people’s health or their ability to use their own property as they see fit, like keeping a dangerous and aggressive dog unchained in the yard, could also constitute a private nuisance. Actions that are offensive to the senses, including making unpleasant odors or being visibly nude on private property, could also constitute a private nuisance. A reasonable person would generally need to agree that the behavior is offensive or inappropriate. Public nuisances tend to affect multiple neighbors or the entire neighborhood. The impact on the multiple parties affected does not have to be exactly the same for conduct to constitute a public nuisance. Operating a drug house is a public nuisance, as is engaging and prostitution out of a residential property. Even loud parties that require police intervention late at night could be a form of public nuisance. State prosecutors can bring charges against those who become public nuisances. Prosecution isn’t possible for private nuisance allegations in most cases, but litigation can be an option. Homeowners can file a lawsuit against an adjacent property owner whose actions affect their quiet enjoyment of their property or its potential resale value. Ultimately, seeking legal guidance and learning more about the rules that govern real estate disputes between neighbors, including nuisance claims, may benefit those trying to navigate a difficult situation involving a neighbor.

Real property can be the biggest investment someone ever makes. Partially as a result of this reality, people tend to feel very strongly about protecting their property rights. Sometimes, disagreements related to real property ownership will end up in civil court. People cannot always resolve a dispute via negotiation that could have an impact on their finances or ownership rights, so they ask a civil court judge to rule on the matter. Every real estate dispute is inherently unique, as the conditions of the property and the circumstances of the owners are unique. However, certain types of real estate litigation are far more common than others. The following are some of the most common reasons that people go to court over a real estate matter. THERE ARE ISSUES WITH BOUNDARIES OR PROPERTY USE Sometimes, neighbors may disagree about where the boundary line between two parcels actually falls. The actual placement of the boundary can impact the use and value of the land. Someone overstepping a boundary might eventually lead to claims of adverse possession if the owner does not challenge their behavior in court. Other times, people may go to court because a neighbor’s use of their property has affected their enjoyment of their property or the value of their land. THERE ARE UNDISCLOSED PROPERTY DEFECTS Issues that people discover with a new home after taking possession can influence not only their enjoyment of the property but often also its actual value on the open market. Buyers who discover significant defects after taking possession of a property may end up taking the seller to court to seek reimbursement for the cost of repairing those defects or the diminished value of the property because those defects exist THERE ARE PROBLEMS WITH A CONSTRUCTION PROJECT Construction defect claims are lawsuits brought by property owners against businesses that they hired to construct, remodel or repair a property that they own. Such lawsuits can lead to a court order to correct the issue with the property or compensation for the owner. On the other hand, sometimes construction firms or the businesses that supply them with materials take a property owner to court over nonpayment. Lawsuits seeking liens against real property to compel someone into payment are also relatively common in Massachusetts. Ultimately, recognizing when a conflict related to real property might justify going to civil court could help homeowners and businesses better protect their interests.