MartinWren Attorney Ron Wiley Cited in the FEE SIMPLE

MartinWren attorney Ron Wiley was cited in “Foreclosure Defense: Tilting at Windmills,” an article in the current issue of the FEE SIMPLE, the newsletter of the Real Property Section of the Virginia State Bar.  Wiley presented “Closing for Sure—A Practical Checklist for Foreclosure Property” at the 29th Annual Real Estate Practice Seminars cosponsored by the Virginia State Bar Real Property Section and Virginia CLE last May and the authors of the foreclosure defense article cited his comment in those presentations that a foreclosure must be by the party secured by the deed of trust.  The article discussed the legal arguments raised by both borrowers’ and lender’s counsel in foreclosure defense cases in Virginia. (Although Wiley is an Area Representative of the Real Property Section, the article incorrectly credited him with being a former chair of the section.)

 From its office in Charlottesville, MartinWren, P.C. offers legal services to both individuals and small and large businesses across Virginia in: Business, Corporate & Tax Law; Healthcare Law; Estate Planning & Administration; Start-ups and Emerging Companies; as Charlottesville Personal Injury Lawyers; Intellectual Property and Technology LawCommercial & Residential Real EstateCivil and Commercial Litigation; and Family Law & Adoption.  Please visit www.martinwrenlaw.com for more information.

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Short Sale Shenanigans?

As we explained in our July post, Avoiding Short Sale Fraud, short sale fraud can be a serious problem.  In addition to the issues raised by quick resales of property for higher prices as we discussed previously, we have seen another trend in short sale transactions that we consider to be a problem—the trend toward using multiple settlement statements or otherwise not disclosing all the financial details of transactions in approved short sale settlement statements.

This troubling practice arises when a party secured by a mortgage or deed of trust that will be released for less than the amount owed (the “short sale lender”) or someone else involved in the transaction informs the settlement agent or attorney that a particular cost or expense cannot appear on the settlement statement.  One response would be for the parties to eliminate that cost or expense altogether, but that’s not what usually happens. Instead, the settlement agent or attorney is told to just not show the cost or expense on the approved settlement statement.  Some “side deal” or separate settlement statement then is used to account for the forbidden cost or expense.

Our concern is that the settlement agent or attorney and the parties typically sign the approved settlement statement and it at least implies, if it does not explicitly state, that all the financial details of the transaction are shown.  Especially if what is not being disclosed would materially affect the short sale lender’s decision to release the property from its mortgage or deed of trust, the failure to disclose the full details on the approved settlement statement could be a problem.  Even if the short sale lender “knew” about the undisclosed cost or expense, its knowledge could be difficult or impossible to prove if it contradicted the signed, written settlement statement, especially if the parties certify that statement actually did disclose all the financial terms and conditions of the transaction.

In some ways, this problem with short sale transactions is just a new twist on an old problem.  Indeed, the failure to document the actual terms and conditions of transactions accurately was one of the problems that contributed to the collapse of the residential mortgage financial system in the last few years.  You don’t want to become the poster child for what causes any further distress in that system just because “everyone else does it.” Make sure your settlement statement accurately and completely shows all the financial terms and conditions of your short sale deal.

Ronald D. Wiley, Jr., the author of this post, is an experienced Virginia Property Law Attorney who practices Commercial and Residential Real Estate throughout the Commonwealth of Virginia with MartinWren, P.C.  To reach Ron, please call him at (434) 817-3100 or send him an email at wiley@martinwrenlaw.com.

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Litigation in the Eastern District of Virginia

If the old maxim “Justice Delayed is Justice Denied” rings true, the United States District Court for the Eastern District of Virginia is quite possibly the greatest arbiter of justice in America today.  Known as the “Rocket Docket,” the Eastern District of Virginia consistently ranks as one of the fastest moving and busiest federal trial courts in the country.  With divisions in the Virginia cities of Alexandria, Richmond, Newport News and Norfolk, the Virginia’s Eastern District quickly resolves cases from the greater District of Columbia region through the central Virginia region of Richmond down into the bustling Hampton Roads area.

The moniker “Rocket Docket” stems from the breakneck speed at which federal trials progress through the Eastern District, with the average case being tried approximately 10 months from the filing date of the complaint.  Filing a complaint triggers a dizzying pace of filing and disclosure dates, cutoffs, hearing dates, and even speedy resolution of pending motions.  Active cases do not languish on the court docket, as trial dates are chosen quickly and the judges are loathe to grant continuances.  The discovery component of litigation, often the most timely and expensive component of litigation, is stripped of its cumbersome and clogging nature by placing restrictive limits on the quantity of available discovery mechanisms.  Pending motions must be resolved quickly – motions are deemed to be withdrawn unless set for hearing within thirty days of the filing date.

The Eastern District’s rapid and relentless pace is a result of a combination of finely tuned local rules and scheduling orders that seamlessly connect the pleading stage to discovery and propel a case to an early trial date in a manner that prevents gaps from occurring.   Once a complaint is filed in the electronic case filing system, Local Rule 16 requires the Court to hold a pretrial conference “as soon as possible,” where the court establishes a discovery cut-off date 90 or 120 days later, schedules a final pretrial conference date, and, “whenever practicable,” schedules a trial date.  The Rule 26 conference also follows tight deadlines, with parties required to submit a discovery plan within 14 days of the conference.  The Court further limits many of time consuming aspects of discovery by placing strict limits on the number of depositions permitted and interrogatories issued.

If proper steps are taken, parties can use the speed of the Eastern District of Virginia to their advantage.  Sophisticated plaintiffs can capitalize on the rapid pace of the Eastern District of Virginia by seeking an expedient resolution that maximizes litigation budgets and reduces the advantages defendants often have by increasing litigation costs and slowing the pace at which a case proceeds.  But pursuing a case in the Eastern District requires a plaintiff to meticulously prepare before the complaint is filed because, once the complaint is filed, there is not adequate time to investigate all facts and law, develop a theory of the case, and identify and hire experts.  To the extent possible, these items must be completed before litigation ensues.

Defendants, too, can utilize the nature of the Eastern District to their advantage by pushing a case quickly through discovery to reach a summary judgment disposition or onward to trial in a reasonable amount of time.  Unless defendants are methodically prepared, however, the relentless speed of the Eastern District of Virginia can catch them by surprise as the mounting deadlines require defendants to swiftly mount a legal team, identify experts, and formulate a strategy to use in the case.  Defendants sued in the Eastern District must implement their defense strategy quickly and decisively, and such defendants may suffer irremediable prejudice if they do not act immediately. 

Litigating in the Eastern District of Virginia can be a boon or a tragedy depending not just on the substantive merits of the case, but on how prepared parties are to work within the demanding procedural system.  If you or your client are facing litigation in the Eastern District, be aware of the unique nature of this Court and be sure to have a member of your team who is familiar with the demanding rules and procedures of the Eastern District.

Robert E. Byrne, Jr., the author of this post, is an AV-rated trial attorney who practices Civil and Commercial Litigation and Personal Injury law while serving as the managing attorney of MartinWren, P.C. in Virginia.  MartinWren, P.C.’s trial attorneys have valuable experience litigating federal court cases, whether as local counsel or lead counsel, in both the Eastern District of Virginia and the Western District of Virginia.  For more information about litigating a case in the federal courts of Virginia, please call Bob at (434) 817-3100 or contact him by email at byrne@martinwrenlaw.com.

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Benefit Corporations in Virginia

Effective July 1, 2011, Virginia law permits stock corporations to elect to be treated as “benefit corporations.”  A benefit corporation has as one of its purposes the purpose of creating a “general public benefit.”  A “general public benefit” means a material positive impact on society and the environment taken as a whole, as measured by a third-party standard, from the business and operations of a benefit corporation. 

A benefit corporation may also set out in its articles of incorporation or bylaws specific public benefits that it intends to create such as providing low-income or underserved individuals or communities with beneficial products or services; promoting economic opportunity for individuals or communities beyond the creation of jobs in the normal course of business; preserving or improving the environment; improving human health; promoting the arts, sciences, or advancement of knowledge; increasing the flow of capital to entities with a public benefit purpose; and conferring any other particular benefit on society or the environment. 

A benefit corporation differs from traditional stock corporations in that the board of directors of the benefit corporation has to consider the effect of any corporate action not only on the shareholders of the benefit corporation, but also on the employees and workforce of the benefit corporation, its subsidiaries, and suppliers; the interests of customers as beneficiaries of the general or specific public benefit purposes of the benefit corporation; community and societal considerations, including those of each community in which offices or facilities of the benefit corporation, its subsidiaries, or suppliers are located; the local and global environment; the short-term and long-term interests of the benefit corporation, including benefits that may accrue to the benefit corporation from its long-term plans and the possibility that these interests and the general and specific public benefit purposes of the benefit corporation may be best served by the continued independence of the benefit corporation; and the ability of the benefit corporation to accomplish its general and any specific public benefit purpose.

A benefit corporation must prepare an annual benefit report that includes a narrative description of the ways in which the benefit corporation pursued the general and specific public benefits during the year and the extent to which the general and specific public benefits were created; any circumstances that have hindered the creation by the benefit corporation of the general or any specific public benefit; and an assessment of the social and environmental performance of the benefit corporation. This assessment must be prepared in accordance with the applicable third-party standards. The benefit corporation must provide a copy of its annual benefit report to its shareholders and must either post the report on its website or provide a copy to any person requesting one.

Greg Johnson, the author of this post, is the head of the MartinWren, P.C. Business, Corporate and Tax Law group, where he provides corporate and tax advise to a broad range of Virginia entities and individuals.  For more information about Benefit Corporations, please contact Greg at (434) 817-3100 or send him an email at johnson@martinwrenlaw.com.

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Jonathan Wren to Participate as Panelist For Civil Discovery CLE

Jonathan T. Wren, the head of MartinWren, P.C.‘s Virginia Personal Injury Lawyers practice group, will participate as a panelist for a continuing legal education seminar focusing on Civil Discovery.  The seminar will be held on Wednesday, December 14, 2011, in the Charlottesville General District Court and Mr. Wren will speak as a panelist with U.S. Magistrate Judge B. Waugh Crigler, Western District of Virginia, and attorney John H. Kitzmann, of Davidson & Kitzmann.

 From its office in Charlottesville, MartinWren, P.C.‘s attorneys offer legal services to both individuals and small and large businesses across Virginia in: Business, Corporate & Tax Law; Healthcare Law; Estate Planning & Administration; Start-ups and Emerging Companies; as Charlottesville Personal Injury Lawyers;Intellectual Property and Technology LawCommercial & Residential Real EstateCivil and Commercial Litigation; and Family Law & Adoption.  Please visit www.martinwrenlaw.com for more information.

MartinWren, P.C. is a

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Robert Byrne to Teach National Seminar on Breach of Contract Disputes

MartinWren, P.C. attorney Robert E. Byrne, Jr. will be presenting a telephone seminar to a national audience on November 4, 2011.  The seminar, entitled Breach of Contract Disputes, will be presented as a continuing legal education program by National Business Institute. 

Bob, who serves as the managing attorney of MartinWren, P.C., practices as a Charlottesville Business Litigation Attorney and a Virginia Personal Injury Lawyer.  For more information about Bob’s services, please call him at 434-817-3100 or contact him by email at byrne@martinwrenlaw.com.

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A Summary of Virginia’s Reckless Driving Statutes

One of the suprising aspects of Virginia’s traffic laws are the number of different reckless driving offenses on the books.  This is particularly surprising considering that when most folks think of reckless driving, they envision a car weaving through traffic at high, out-of-control speeds, causing immediate and obvious danger to everyone else around them.  While this example of reckless driving is certainly an accurate one, reckless driving may arise in a number of far less obvious contexts.

The Virginia Code recognizes the following types of reckless driving (for the actual language of the statute, please click on the links):

1.  § 46.2-852. Reckless driving; general rule.  Irrespective of the maximum speeds permitted by law, any person who drives a vehicle on any highway recklessly or at a speed or in a manner so as to endanger the life, limb, or property of any person shall be guilty of reckless driving;

2.  § 46.2-853. Driving vehicle which is not under control; faulty brakes;

3.  § 46.2-854. Passing on or at the crest of a grade or on a curve;

4.  § 46.2-856. Passing two vehicles abreast;

5.  § 46.2-857. Driving two abreast in a single lane;

6.  § 46.2-858. Passing at a railroad grade crossing;

7.  § 46.2-859. Passing a stopped school bus; prima facie evidence;

8.  § 46.2-860. Failing to give proper signals;

9.  § 46.2-861. Driving too fast for highway and traffic conditions;

10.  § 46.2-862. Exceeding speed limit;

11.  § 46.2-863. Failure to yield right-of-way;

12.  § 46.2-864. Reckless driving on parking lots, etc.; and

13.  § 46.2-865. Racing; penalty.

Some of these forms of reckless driving should be very apparent to the drivers of Virginia’s roads.  If you pass a stopped school bus, for example, it should come as little surprise that a police officer can, and probably will, cite you for reckless driving.  But as the various reckless driving laws in Virginia make evident, there are plenty of gray areas where police officers have discretion regarding whether to charge a driver with reckless driving.

Take, for instance, Virginia Code sec. 46.2-861, which prohibits drivers from driving too fast for highway and traffic conditions.  Under this particular statute, a traffic officer can ticket a driver for exceeding “a reasonable speed under the circumstances and traffic conditions existing at the time, regardless of any posted speed limit.”  As phrased, this statute allows an officer to use a great deal of his or her discretion to consider a multitude of variables as to whether speed is reasonable based on traffic conditions, the weather, or numerous other circumstances.  Under this scenario, a police officer has a great deal of power to determine whether to ticket someone for reckless driving or some other lesser driving infraction.

The penalties for reckless driving in Virginia can be severe.  According to Va. Code 46.2-868, any driver convicted of reckless driving “shall be guilty of a class 1 misdemeanor.”  A class one misdemeanor in Virginia is a serious charge — it is the most serious form of misdemeanor under Virginia criminal law — and it can be punishable by confinement in jail for up to 12 months and/or a fine of up to $2,500.  In addition, a conviction for reckless driving is a 6 point traffic violation and it will remain on the driver’s record for up to 11 years.  Given these high stakes, it is vital for those ticketed with reckless driving to understand the severity and consequences of the charge and to contact an experienced attorney to discuss all available options.

If you have been ticketed for reckless driving in Virginia and would like o learn about your rights, please contact Robert Byrne, the managing attorney of MartinWren, P.C. and a member of its Virginia Reckless Driving Attorneys Group and its Virginia Personal Injury Lawyers Group, at 434-817-3100, or, toll free, at 855-812-9220.

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Mistakes Residential Real Estate Investors Make (6 + 1)

Last Saturday’s Wall Street Journal online edition included an article, “Six Mistakes Housing Investors Make.”  Columnist Karen Blumenthal quite correctly describes six common mistakes people make when they consider investing in residential real estate. In today’s real estate market, though, another mistake investors make is to accept real estate escrow, closing and settlement services provided by an attorney or title company associated with the financial institution selling the property at or after a foreclosure.

We’ve blogged about the importance of having an experienced real estate attorney who understands state foreclosure law and practice represent purchasers of foreclosed property in our post Beware of the Dangers of Purchasing Foreclosure Real Estate.  Owner’s title insurance is particularly important for purchasers of foreclosed properties, too, as we said in Owners Title Insurance Remains Important and in Title Insurance Vital to Protecting Homebuyers.   Hiring an independent settlement attorney or agent and purchasing owner’s title insurance can help protect a rental property purchaser’s investment. We can’t help with those other six mistakes, though!

Ron Wiley, Jr., the author of this post, practices throughout Virginia in MartinWren, P.C.’s Residential and Commercial Real Estate Lawyers group.  For more information about this article, please contact Ron at 434-817-3100 or send him an email at wiley@martinwrenlaw.com.

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MartinWren, P.C. Attorneys Handling Listeria Monocytogenes Claims from Rojo 7 Layer Dip and Other Guacamole Dips

As reported in our article, “Attorneys Handling Listeria Monocytogenes Food Poisoning Claims from Guacamole Dip,” the Virginia Personal Injury Lawyers at MartinWren, P.C. are representing clients who have suffered sickness, illness, and injuries from eating Rojo 7 Layer Dip and other guacamole dips from Fresh Food Concepts that was part of a recall from Sam’s Club.  According to the U.S. Food and Drug Administration, individuals who consumed guacamole dips from Fresh Food Concepts face possible listeria monocytogenes contamination, a serious condition that has been found to be the leading cause of death among foodborne bacterial pathogens.  

If you have consumed Rojo 7 Layer Dip from Fresh Food Concepts and have suffered an illness or injury, please call Jonathan Wren, the head of MartinWren, P.C.’s Virginia Personal Injury Lawyers group.  Jonathan can be reached, toll free, at 855-812-9220, and he will schedule a free consultation and case evaluation to suit your schedule.

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Searchable Online Code of Virginia and Legislative History

            I heard a story on our local NPR station Friday morning about concerns some have raised about legislators serving on General Assembly committees with oversight of services or businesses in which the legislators have personal or professional interests outside their service in the state legislature. At the end of the story, the reporter mentioned a public interest group that was working to put the Code of Virginia online. I immediately thought about the very useful online Code already available through the Virginia General Assembly Legislative Information Service (LIS).

            The LIS website includes a searchable database for the Code of Virginia, as well as a Table of Contents with links to each title and section of the Code. One of the great things about the LIS database is that it also includes links to the legislative history of each section of the Code at the bottom of the text of the current law. By linking back to the legislative history, you can see how the law has changed over time and if the law was different at some time relevant to your particular situation.

            The LIS website also includes searchable databases for many past General Assembly sessions where you can see the history of bills and resolutions submitted in those sessions. It is a reliable source of information on the status of bills and resolutions while the General Assembly is in session each year, as well.

            I don’t know exactly what the public interest group has in mind for its online Code of Virginia, but the Virginia General Assembly’s Legislative Information Service already has provided a very useful tool for anyone interested in current statutory law and legislative history in Virginia.

Ron Wiley, the author of this post, heads MartinWren, P.C.‘s Residential and Commercial Real Estate practice group.

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