Showing posts with label unjust enrichment. Show all posts
Showing posts with label unjust enrichment. Show all posts

July 29, 2012

SandBoxBlogs: Eagle County Times "Some Cordillera Folks – not too happy with the Fishwrap either…"

See related posts and public comments at the following links:
http://sandboxcommentators.blogspot.com/2011/05/sandbox-comments-vail-daily-cordillera.html
http://sandboxcommentators.blogspot.com/2011/12/sandbox-comments-eagle-county-times_12.html
http://sandboxcommentators.blogspot.com/2011/12/sandbox-comments-eagle-county-times_05.html

Without passing judgement on whether or not the Wilhelm Family Partnership is guilty of the accusations against them; let's pass comments on what is obvious to those following the details.

And that is the 'shuck and jive' from the attorneys on the Wilhelm side once they realized that the opposing side actually has a case.

Remember when DA Mark Hurlbert turned this one down and said there was no criminal activity?  Remember how outraged the public commentary in numerous publications and mediums was?  That outrage came mostly from construction oriented folks.  Here was a district attorney noted for pulling in nearly all complaints into criminal court who barely even glanced at the major case of Cordillera.

Anytime that a project or an owner does not pay those they hire, especially those at the top who keep things moving, there is a trickle down effect that can run small businesses into bankruptcy in a heartbeat.  Years ago, Cordillera set themselves up as one of the worst to pay for the work they benefitted from.

Unjust enrichment.  Tortious interference.  Two very powerful civil criminal liabilities that owners who engage in 'shuck and jive' while reaping high dollar asset rewards should be held accountable for under law.

It may not seem like much when the dollar amounts are looked at. After all, what are hundreds, thousands of dollars not paid to the people who did the work and hired others as well...when there are millions of dollars in the asset of the project itself?

In the case of Cordillera, it was the overwhelming arrogance of the early homeowners and the club owners that left such a sour taste in the public's mouth.  There were some projects back then that were even rumored to be slandered by comments from those powerful folks up there to 'not pay' the GC's, architects and designers.  Long after the work was done, the liens filed and the development began to sell homes there still was no return to the people who actually gave their labor and resources to get it built.

A special thank you goes out tonight to District Court Judge Fred Gannett.  For having the moxy and common sense to thwart the obvious ploy of the Wilhelm lawyers as they scramble to turn the 'shuck and jive' into a true three-ring circus.  Here's to the case being handed off to a tough hand who just might, after all these years, finally put an end to at least one of these mongo developments who enrich themselves off others.

'SandBox Nanny' is quite certain that every little guy who has suffered high losses because of the power abuses over the years would be very grateful if that turns out to be the case.

"Truth goes through three stages. First it is ridiculed. Then it is violently opposed. Finally, it is accepted as self-evident."

April 24, 2012

SandBoxBlogs: Vail Daily "Civil lawsuit related to Vail Four Seasons construction wraps up Friday"

The criminal acts of tortuous interference and unjust enrichment are all too often casually brushed aside by prosecutors and law enforcement as 'civil criminal' acts.  In so many cases in the elite, custom construction world; there couldn't be anything further from  the truth.

Project after project, no matter what the scale, sees owners, developers and investors clawing over each other in order to add one more dollar to their own personal bottom lines.  The builders, trades, vendors, professionals and workers in their path are discarded as collateral damage.  No matter that their businesses, lives, relationships are often destroyed; their characters, reputations and confidence are often shattered as well.

There is nothing worse than pure, unadulterated greed in an owner or developer.  With the exception of those rare breeds that also combine ego, power and often brute political force on top of their greed lust.

The plans on Four Seasons weighed a combined total of nearly 300 lbs.  It took, for something as detailed and all encompassing as painting and wall coverings both interior and exterior; nearly four months to do full takeoffs on.  And that was for nearly every trade as well and counts as the 'free' time one puts in just to bid the job.

The Four Seasons project was troubled with changing hands from day one.  When Layton stepped in, those who were experienced enough in that kind of rodeo arena knew they could trust that their backs were looked after and many returned to the table to enter bid vetting.

Here's to the men and women of Layton Construction.  You are of stellar character.  Your loyalty, your courage to stay the course and your unwavering support of the difference between right and wrong is unsurpassed in the Colorado resort construction scene.  You are welcome in Colorado anytime.

May you not only prevail and finally get your paychecks on Friday.

May you also be vindicated.

Randy Wyrick:
"EAGLE — After almost a year, this week lawyers will stop dancing the Four Seasons fandango.

The most expensive and extensive case in Eagle County history is expected to end Friday. Like most civil disputes, this one's about money — lots and lots of money. It's a story about great big numbers and a great big hotel, although the hotel itself — The Four Seasons Vail — has nothing to do with the lawsuits related to its construction.......

.........“Layton had hundreds of people and millions of dollars invested. Did it occur to you that they were also at risk?” asked Holt.

Layton says the designers and architects were responsible for changes and, therefore, the cost overruns. Layton made changes without her permission, Baek said.

“It is demoralizing and of great concern to everyone working on the job to have to finance the work we are performing for your benefit,” Layton's attorneys wrote......

.........As for Judge Gannett, who likens the Four Seasons case to James Joyce's “Ulysses” — large and panoramic — he calls it “a very complex epic.”

He's paying close attention to each of the millions of details. He must. Tens of millions of dollars could potentially change hands based on his decision...."  (Read more?  Click title)

"Unapologetically pursuing and tracking patterns within the news others make since 2010."

March 19, 2012

SandBoxBlogs: Aspen Daily News/Johnny Boyd "Darkness in the middle of town"

Terrific column out of Johnny today.  Up on the Aspen Daily News.

There are so many related stories to Johnny Boyd's point today that should be brought up in our aggregate of news this morning. My goodness, they run the gamut from shady developments and suspect patterns of lending and cronyism between multiple developments to accusations of fraud, unjust enrichment, tort interference and even swoop those big money accusations on over into the local upvalley drug culture war. 

Lordy lordy, says, 'SandBox Nanny'.  What tangled webs are woven out there.

Here's to the voice of the common man.  The little guy.  Let Freedom ring.

 Let's just toss up some links to public commentary on a few of the key related:

http://sandboxcommentators.blogspot.com/2012/03/sandboxblogs-snowmass-sun-skico-accused.html


http://sandboxcommentators.blogspot.com/2012/02/sandbox-comments-glenwood-springs-post_21.html


http://sandboxcommentators.blogspot.com/2012/03/sandboxblogs-aspen-daily-news-pitkin.html

http://sandboxcommentators.blogspot.com/2011/05/sandbox-comments-vail-daily-cordillera.html

http://sandboxcommentators.blogspot.com/2011/12/sandbox-comments-eagle-county-times_12.html


Johnny Boyd:
"The German banks recently filed to lower the value of the property by $94 million. That certainly bodes well for everyone’s real estate prices. The people that have already bought into the Base Village want out badly enough to accuse the original developers of defrauding them. If these folks win this case, no condos will ever sell in the Base Village until this has all been forgotten in about 100 years. Believe me, the Aspen Skiing Co. and Intrawest didn’t build those structures to stand for 100 years.

Base Village was approved in a cloud of negativity with allegations of voter fraud perpetrated by people with interests in seeing their real estate values climb during the real estate bubble, and it is ending up even more negative. The ugliness of the entire project isn’t limited to its cookie-cutter appearance.

On the bright side, the original developers of the Base Village, SkiCo and Intrawest, are being sued for alleged fraud by misrepresenting the size of the individual condominium units. This lawsuit is allowing local billionaire and SkiCo owner, James S. Crown, to fulfill his promise to the community that he would be here for “the long haul.” It’s fortunate that the suffering that the residents of Snowmass have been through can be shared by so many that have been so complicit in making the Base Village what it is. Base Village just keeps on giving — like standing under a tree full of pigeons.

As its construction benchmarks are surpassed and no progress is made on its completion, its approvals disappear. No one in town government can speak of these deadlines and what comes after for fear of reprisal in the form of lawsuits. Planning for the future isn’t allowed if it means that those plans would hurt the value of the property. The truth hurts. But even more interesting is the idea that a developer willing to spend hundreds of millions of dollars on a huge project can’t figure that out for himself.

The writing is on the wall. No banks are loaning money for small but expensive condos. The market is gone. If the German banks that are currently sitting on their hands were smart, they would be talking with the town about the future right now.

The only possible solution, at least in the short-term, is for the real estate in the Base Village to go high-end. Toss out the idea of constructing 1,000-square-foot condos and reprise the idea of 5,000-square-foot super-luxury condominiums. Snowmass, if it ever wants to see the blight removed from the center of town, will have to approve the construction of units that only the uber-rich, Mercedes Benz crowd can afford — the type of people that write checks for their toys, no financing needed...."  (Read more?  Click title)

"Unapologetically pursuing and tracking patterns within the news others make since 2010."

January 24, 2012

SandBox Comments: Eagle County Times "Update – Cordillera Golf Course Litigation"

'Paul Drake':

"Is the Wilhelm Family Partnership guilty of “Contempt of Court”?

That’s what District Court Judge Fred Gannett wants to know – and has recently ruled/scheduled a hearing for (Monday, April 11th 2012) at 9:00 AM in his Courtroom to determine just that  (Click Here).
Named defendants in the Contempt of Court hearing are – WFP principals – David Wilhelm and son Patrick Wilhelm.

Contempt?  Earlier Judge Gannett issued a (TRO) Temporary Restraining Order against the WFP (Click Here) – that defined what Golf Course Membership dues collected in 2011 could be spent on.  Now a hearing is set to determine (among other things) if membership dues were used to pay a law firm (after the TRO was issued) to sue the Cordillera Transition Corporation and individual CTC members.

The “legal monkey” seems to be on the back of the WFP principals – since they will have to convince Judge Gannett of why they shouldn’t be held in Contempt at the scheduled April 11th hearing.

Meanwhile….

On or about January 16th, 2012 the WFP issued a settlement proposal to the opposing party (Golf Club Members).  These members insisted that settlement discussions are premature – on the grounds that the WFP has not responded in writing to the questions in the Interrogatories that were served to them.

Further…at an earlier date District Court Judge Fred Gannett elevated this case against the WFP to “class action status” (Click Here).

Also alleged in this case – is the financial due date (June 2012) for the WFP to pay back the entire ~$12.7 Million dollar loan the WFP has with local Alpine Bank...."

(Learn more?  Click title. Comment to discuss)

December 12, 2011

SandBox Comments: Eagle County Times "Alpine Bank – Backs Off in ongoing Cordillera Litigation"

Good morning, dear readers.  This morning, 'SandBox Nanny' is bringing back out of archives one of your fav commentary pieces.

"Exactly, how do the acts of 'unjust enrichment' and 'tortious interference'  really play out in the real world of the common construction industry worker?"

Let us begin:

Let's pick any one of the hot-beds of fodder for our topic.  Like say, any private golf course development in the area.  All the same.  Or, if you prefer to use a gated community, that's fine. All the same.

For simplicity's sake, we'll use 'Generic Golf Course Development (GGCD)' in order to not send certain closet readers of SandBox into the throes of panic that the cops and judicial task forces are going to finally come rolling down the driveway at any moment now with those oh, so embarrassing lights flashing.

Here's the crux of the problem:

Let's hypothetically say that the plans, scope and construction budget for one house in the development is $1.1 million.  The course developer sold some lots to a builder. The builder then sold this lot to a local couple.  That local couple, unknown to anyone except Golf Course Developer, is also an overall investor in the entire development.  And that local couple has a few skeltons in their closet that have been brewing and simmering to come out for a long, long time.  As it turns out, so does the builder and the Golf Course Developer.

The owner/developer has been around a long time, prominent in the community, attends all the social and politically correct functions and organization memberships.  Names are splashed all over the media and are common household topics of conversation for many.

They find a builder that is well-known but nevertheless in need of some work and sort-of has a reputation for being an easy push-over.  And since it's such a small world, they bought the lot from him!  And they share the same bookkeeper! (wink, wink)

The talk gets talked.  Now, the important thing to remember here is intent and it is way, way back at this moment of agreement that all things future are going to to stem from.   One hears 'we'll save money at every point we can and give you a great build'. Another hears 'the budget is for the plans and scope at this moment.  That changes, then money changes.'  Another in this trio of soon-to-be miscreants hears 'it's her dream house, we'll give her anything she wants'.

Remember now, Golf Course Developer Guy is nowhere in the conversation because the builder is the seller of the lot.

In our hypothetical scenario with the 'GGCD' project, it would turn out later down the road that the husband and wife team were worlds apart on thinking of 'how' their dream home was going to be built.  All the builder and every industry related trades and professionals coming in behind him know is that the rule of law is the plans, the budget, the choices made by the owner/developer and the quality at the end.

In construction, your talent, skill and output are your own but they are based solely on executing what you're told to do.  Smart industry members keep detailed records of what they're told to do.  That way, when the usual time in most builds when an owner or trade or vendor takes things south and attempts to flip the blame of their actions over on to you; there is a record of what really happened.

Let's pick up the pace here and get away from this boring part of our commentary:

"...So, the talk is talked.  Builder starts up on a loose contract and handshake.  (After all, 'Suzy socialite' is in the news every day, how can these people possibly go south?)

Trades and everyone else piles on with the builder footing the bill. 

The owner/wife there daily and slipping in change after change to the scope. Builder's starting to toss and turn at night, but, the first few checks from the husband who's really not on the same page to start with roll in and are on time.  And you do have that tiny little clause in your loose handshake from one of those stellar pillars of the community who did say they wanted your best and were willing to pay for it.  "It's her dream", after all.

Time marches on as always in the world of men, machines, dirt, framing and wiring.

"Oh!!!  My dream!! My vision!! And just look, honey!!  I found all of our plumbing fixtures and lighting at 'Milly's Repo Mall' and 'Overstock Extravaganza'!!!!  For a fraction of what the plumber and electrician want to charge!!!!  See what a good manager I am?  Just look!"

"Oh, Mr. Plumber Man!  See what I bought?  These are just perfect, aren't they?  But wait, I'm still not sure if I want to add that 10th bathroom and dog wash.  But I will let you know soon just as soon as we get back from the interior designer I hired 3 months ago and have drawing up all new plans!"

"Huh?"  says, Mr. Plumber Man.  "Lady, I'm at the rough in stage.  We can't add another bathroom.  Who's the designer?  This is her idea?"

"Oh, no!!!  It's my idea, it's my dream!!!  She keeps saying absolutely not, but frankly she can be a real force to be reckoned with and I'm not sure if even I can get her away from her firm stance.  But I'm the best, don't you know!!!  By hook or crook, that's my motto!!"

"Yea.  If it's her she's not going to back down or cave to you so we're safe and you're dreaming.  If you want to make changes, you need to get with Builder Man and stop the project until you're sure.  What is this stuff you bought?  Lady, 'Milly's Repo Mall' is the worst.  You just bought a 3/4" fitting for a 1/2" outlet.  And there's no thing-a-ma-jig that's the most important part of the whole thing.  This stuff is worthless.  Huh....WTH??!!!....what're you doin?"

"HOW DARE YOU!!  I am the owner and I sign your checks.  I'm getting my husband.  These are the faucets I want.  It's my dream!!!  What are you doing?"

"Packing up, Lady.  Have Builder Man give me a call when you all get it worked out."

The next day when the trades arrive on site, Builder Man says:  "Go on home, everybody".  Golf Course Owner Family hasn't paid the payments on the land I sold to 'Queen of Mean and hubby aka the old Suzy socialite and quiet, mild-mannered husband' to build this thing on.  Didn't pay the utility PUD fees for the development, spent the money on the latest lawn mowers for the golf course.  And there's some kind of flap about investors with money from God only knows where that the Golf Course Owner Family trusted in the beginning.  Surprise, surprise that the quiet hubby on this job is one of those investors.  But we've got a tiny little clause in my loose handshake on this and it'll be alright because we've got 'Designer Force Lady who the old Suzy Socialite talked into racking up a mongo A/R bill' running interference for us. And I can always repo the dirt it sits on."

Trudging off to their trucks and units, all the trades are heard muttering under their breath that 'this thing is going to Antartica it's that far south'.

Builder Man starts to drive off down the road and Golf Course Owner Family blocks the road.  "WTH?? Where are you going??  The owner of that one holds all the cards on the money I need to stay out of class-action!!  Tick him off and I'm doomed!!!"

"What do you mean you're doomed?  As of this moment you're without the dirt the thing sits on because he's holding payment back on everything until his wife is happy.  I'm slamming the lid until you're all worked out AND have that dame under some kind of control.  She's driving us nuts!"

Three years later, the house has been forced built at the cost of hundreds of thousands of dollars in loss to everyone working on it.  But the Queen of Mean aka Suzy socialite is thrilled because she did get her 'Milly's Repo Mall' specials after all and with what they didn't pay everyone, the house appraised at nearly $2 million but was built for half of that!!  What a gal, what savings!

The amenities of the development aren't up to par or even fully running. 

Class action lawsuit by enraged homeowners that can't golf are whipped into a fake frenzy by the 'Queen of Mean aka Suzy socialite' in order to hide her being the force that spun it all into chaos and her husband having some minor concerns about how some of their wealth accumulated over the years.  Dinero he used to be an original investor in the whole mess. 

Designer Force Lady and a couple others in the Builder Man's world still struggling to get paid and clear.  The 555th district DA trying to be involved but caved to the powers that be and keeps sitting back waiting for more to shake out of the branches of the tree so he can maybe fill in all his holes.

Now, dear readers.  Who is the culprit that is the tort interference and unjust enrichment in our hypothetical scenario?

The Golf Course Owner Family, the quiet, mild-mannered hubby with his group of investors and all cronies in-between.

Who are the victims?  Not the ones in the middle like Builder Man.  He came out pretty flat.  The victims are everyone from there on down the food chain."

But, hey Dave!

Slippery but nice and slick move to get some payments caught up at that alleged crony of everyone Alpine Bank!

And the beat goes on...

(Read the article from those top-notch investigative reporters  Della Street and Paul Drake?  Click title)
"Truth goes through three stages. First it is ridiculed. Then it is violently opposed. Finally, it is accepted as self-evident."

December 5, 2011

SandBox Comments: Eagle County Times "Cordillera Golf Club litigation heats up"

Avatars in commentary have been pretty hard on the Wilhelm Family up in Cordillera.

No doubt, this is a just lawsuit in many ways.  As managers, especially of construction development in Cordillera, these guys really do belong in the same leagues as the construction set and architect that ran right over the top of Scott DeGraff over in Snowmass and Aspen.  They make the concept of 'unjust enrichment' have a whole new depth of meaning.

But so far, commentators in the construction industry have not said too much about the owners raising the most 'smell' up in Cordillera.

Maybe the time has come for avatars who cross over from Aspen to Vail to start speaking up a bit and level out the playing field for the Wilhelm Family.  In light of the recent press coverage on Base Village, that seems appropriate to do.

There are some crossovers of a few names from Cordillera Homeowners to really, really big projects such as Dancing Bear and Base Village. 

Unjust enrichment is usually a major factor in hurting scapegoats.  And there is no doubt that in a few ways, the Wilhelm Family are scapegoats.

Unjust enrichment is one thing.  But tortious interference is much, much worse.  Criminal in nature if the interference runs deep enough, carries out over extended periods of time or is a pattern that can be proven.

The sad part of the Cordillera mess are all those homeowners, outside of the at least three 'crossovers', that are also the victims.  Same as the scapegoats are.

Exactly how deep did District Attorney Mark Hurlbert really look?  Or was he erring only on the side of the elite, wealthy homeowners?

"For those who are not legally minded, the act of tortious interference is when a party, the tortfeasor, moves to convince another party to breach a contract. It also occurs when the tortfeasor intentionally disrupts the wherewithal of a party to meet its obligations under a contract...."
(J.J. Jackson)

(Read all about how things are heating up, for everybody, over in Cordillera?  Click title.)
"Truth goes through three stages. First it is ridiculed. Then it is violently opposed. Finally, it is accepted as self-evident."