Investopedia has a good definition of the straw buyer as well as it sometimes being a legitimate business transaction.

Now let’s not forget our friends at the Mortgage Fraud Blog, she has another ten articles that included a few about straw buyers being criminally prosecuted.

Mortgage Fraud Blog - Perp Walk - 10 new articles

In This Issue...

Developer Admits Scam that Contributed to Bank Failure
Real Estate Investor Indicted for Stealing from Clients
Mother Sentenced for Forgery and Straw Buyer Conspiracy
Real Estate Investor Admits Foreclosure Bid Rigging
Lawyer, Loan Office and Loan Processor Admit $9M Fraud
Alleged Loan Modification Scammer Arrested
Orchestrator of Straw Buyer Scam Sentenced
Investor Sentenced for Cash Back Mortgage Scam
Foreclosure Rescuer Sued for Failing to Deliver
Real Estate Investor Convicted of Running Ponzi Scheme
Search Mortgage Fraud Blog - Perp Walk

• Height – 4 stories
• Location - Chamberlain Lofts, Ames, Iowa
• Event - Veishea
• 2006 Benjamin Peterson died from a similar fall at this complex
• Drinking may have been involved.
• This isn't rocket science.

Is there something about the design that increases the risk of a fall? Should design changes be added, such as steel bars or ornamental screens? Come on landlord this isn't rocket science. If it's a foreseeable risk the landlord has an obligation to act to protect the residents and guests. Granted you'd probably never think it will happen twice, but now that it did, will it be three strikes and you're out? 

Balcony falls aren’t all that uncommon - in other words they are foreseeable. In this apartment building I'd say they are really foreseeable. Here are a few news articles, but let's start off with a video of a young toddler that falls and lives.

• Two fatal Virginia Beach balcony falls, June 2011
• A two-year-old fell from a balcony
• Virginia - Montgomery construction worker died after falling 90 feet from a high rise balcony.
• Chicago, Man critically hurt after falling from balcony at Chicago Theatre, October 2011
• Colorado Springs fall March 2012
• Oceanfront balcony fall
• Romanian parliament in Bucharest, the man purposefully jumped. Video of the incident.
• Pittsburg, fall 20 foot fall during fight, April 2012
• March 2012, Colorado, alcohol involved.
• Broomfield, Colorado, Pretty Lights New Year’s Eve show
• Wisconsin man died from balcony fall, March 2012
• Long Beach, CA. Fleeing the courtroom man falls from balcony and dies, January 2012
• 21-Year-Old Man Dies After Fall in Ames, KCCI
• KCCI, Video clip

Gee, I wonder what the apartment owners could do to solve this problem that doesn't seem to go away? Let's see it's a college town, with student celebrations, that happen every year and where young adults will be drinking. Hmmm..... could this happen again? Better yet, how can we prevent it from happening again. Let's check out a craftsman from Colorado who has the answer.

http://www.youtube.com/watch?v=Gy1LNfBOJmc

Story, Missing two-year-old girl found dead after falling into septic tank near her home

By RACHEL RICKARD STRAUS

An earlier story about Iowa’s Meth Problem from August 25, 2009 follows. See also the last YouTube video, an expose' of a person burned by a meth explosion. The burn unit costs for one patient burned by meth is $1 million. This hospital unit is spending $300 million a year in uncompensated care, meaning they are providing medical treatment free of charge to the patient and the actual costs are borne by either the taxpayers or other patients who are insured and pay health insurance premiums.

http://www.youtube.com/watch?v=rvYvBXjGKJ4&feature=related

Meth Explosion Caught On Tape, July 7, 2009

http://www.youtube.com/watch?v=nOdE_iQawUw&feature=related

'Shake-And-Bake' Meth Technique Raises Concerns, October 7, 2010

http://www.youtube.com/watch?v=DnT2jfgSllI

What Are Signs Of A Meth Lab In Your Neighborhood?

It probably smells like ammonia, ether, lighter fluid, auto parts cleaner or rotten eggs.

http://www.youtube.com/watch?v=Pu5YaEDGY7A

http://www.youtube.com/watch?v=3MByysaBSKU

The scientists studying it wonder if it's being caused by dietary intake by the pigs. See the video from KSTP, ABC Channel 5. Mysterious Foam Causing Hog Farms to Explode, February 8, 2012.

These are bearded pigs, have no relation but I thought they were interesting. 

Scientists stumped by mysterious foam causing hog farms to explode
Daily Mail
Six farms have blown up since 2009 - killing thousands of animals - after ... metal repair caused an explosion that killed 1500 hogs and injured a worker.

This case discusses the business judgment rule as it applies to management decisions of a nonprofit condo owners association.  A $200,000 repair of the parking garage was allowed by the Court even in light of a bylaw provision requiring repairs over $25,000 to be approved by 2/3rds of the owners.  Another provision in the bylaws exempted common elements from the 2/3rds vote requirement and the court found this restrictive language to be ambiguous.  

Holding: We hold the business judgment rule applies to the governance decisions of the board of this nonprofit condominium owners association when the board acts within its authority. We conclude the bylaw at issue is ambiguous and defer to the board’s authority under the governing declaration to decide questions of interpretation or application of the bylaws. Accordingly, we reverse the district court and remand for entry of judgment for the Association and for further proceedings on its counterclaim.

And the following provision: In the event of any dispute or disagreement between any Unit Owners relating to the Property, or any questions of interpretation or application of the provisions of the Declaration or Bylaws, such dispute or disagreement shall be submitted to the Board. The determination of such dispute or disagreement by the Board shall be binding on each and all such Unit Owners, subject to the right of Unit Owners to seek other remedies provided by law after such determination by the Board.

In interpreting the language in the declaration that was found to be ambiguous the Court applied the doctrine of the last preceding antecedent. “[W]e have consistently reasoned that qualifying words and phrases ordinarily refer only to the immediately preceding antecedent.”)

HOA boards are like mini-city councils with broad powers to effectuate their intended duties of running the organization and in maintaining the common elements. With this ruling the Court took away the opportunity for a small group of owners to block necessary repairs that cost in excess of $25,000.

Business Judgment Rule: As for the business judgment rule the Court said, “The “heart of the business judgment rule” is “judicial deference to business decisions by corporate directors.” Matthew G. Doré, 6 Iowa Practice:  Business Organizations § 28:6, at  94 (2011 ed.). The business judgment rule applies “[w]hen directors act in good faith in making a business decision, when the decision is reasonably prudent, and when the directors believe it to be in the corporate interest . . . .”  Hanrahan v. Kruidenier, 473 N.W.2d 184, 186 (Iowa 1991).  The rule would not permit directors to violate an unambiguous bylaw; rather, the rule (if applicable) would provide judicial deference to board action authorized by the Association’s governing documents. “

What did the board do right?

1. They held meetings and kept the owners informed of the problem, the bidding and the need for repairs.
2. They held a vote.
3. The board properly and thoroughly investigated the need for the repairs.
4. The obtained competitive bids.
5. They held a legitimate competitive bidding process.
6. The repairs could have resulted in a serious safety issue involving the integrity of the structure.
7. They followed the provision above that gave the board the right to cure ambiguity in the interpretation of the declaration of bylaws.
8. They held a vote on the special assessment.
9. In almost every respect the board’s action appears reasonable.
10. In almost every respect the board’s action appears necessary for the safety of the residents and to protect the value of the common elements.
11. The acted in a conscientious manner at every step.
12. The Declarations included a “Board’s Determination Binding” clause giving the board the power to settle ambiguity in the documents.
13. In letting the contracts the board was not self-dealing, there was no fraud nor was there any conflict of interest shown.

Am I critical of this decision? Only to the extent that attorney fees were awarded against the losing party. It seems to me that when the ruling is based on ambiguity in the condominium documents that no one should be awarded attorney fees. Mke each party pay their own fees; to do otherwise discourages owners from getting the courts input into how documents, in this case imperfect, shall be interpreted in the future. That benefits all owners in the HOA.

I guess if I were to make one suggestion it would be for owners to use mediation to resolve these types of issues. It’s cheaper and quicker. 

The assassin smiles at you just before it cuts your throat for financial gain.

Loss prevention departments have only two reasons to speak with you and none are in your favor. 1. Find a way to deny their claim. Or 2. Find a way to pay her less than the law allows. It doesn't get any simpler than that now does it. 

You are right to accept some responsibility, but see a lawyer because you are plainly outgunned by the loss prevention professionals. 

Question: How is negligence determined in personal injury cases?  

Does negligence have to be established in order to collect damages in any personal injury case?

Statutes and Black Letter Law: The statutory law states that everyone must stop at a stop sign. If you run the stop sign you are negligent.

Common Law: If you behave in such a way as to increase the risk of injury to another knowing injury is likely then you can be found to have been negligent.

Contract: General contractors agree by way of a written agreement (the contract) to supervise the construction site and to make sure every subcontractor is abiding by OSHA's rules and regulations. If the GC knows a sub is not following OSHA rules/regs or fails to monitor whether the subs are adhering to OSHA rules they can be found to be negligent.

Criminal Law: Criminal law says if I walk up and punch you in the nose I'm guilty of assault and battery. If I walk up to one guy but hit another due to my being too drunk to make a straight punch, then I'm probably negligent. That's a standard that can be applied to civil law to find you acted negligently.

Professional Standards: Professionals are held to a standard created and recognized by other professionals and the associations that govern their conduct.

These are not all the ways standards are found in the civil law, but it will give you some idea of how standards are determined to exist and therefore formulate the basis for determining negligent conduct. 

It may be that checking at the end of each lease term will help identify the host tenant and we may see landlords suing the host tenant to recover the costs associated with cleaning up the building and for lost rents. A clean bill of health via a dog sniffing certification may be required to prove the case. 

Caption Title: Residents of Elsie Mason Manor vs First Baptist Housing

Filing Date: March 15, 2010

Jeff Lipman for the Plaintiffs.

Attorney for Defendants, Mark L. Tripp of the Bradshaw Law Firm and Kevin Driscoll.

Judge Joel Novak ruling in the class certification.

Des Moines Register, Jeff Eckhoff reporting, Judge allows class action lawsuit in apartment bedbug case, November 11, 2011

The High Cost of Bedbugs, NY Times, July 10, 2009

Sleeping With the Enemy (Bed Bugs), Health, July 10, 2009

Elsie Mason Manor & Ligutti Tower Retirement Homes

Location :Des Moines, Iowa

Address :430 Grand Ave 50309

Telephone :515-243-8759

Fax :515-243-0188

Owner: First Baptist Housing Foundation

For a list of locations see below.

Traffic Camera Proves A Reliable Witness In Crashes, AP provided by KCCI-Channel 8

• Iowa Department of Transportation – Des Moines Area Traffic Speedmap and Cameras Link
• Iowa Traffic Webcams from Leonards Worlds
• Traffic Cameras by State – USA Russia Style link.
• Iowa Webcams link.
• Des Moines area links.
• Iowa Red Light Cameras Map link. 

Grade School Bus Accident - In Janesville, Iowa an 11-year-old boy, Justin Bradfield got off the bus, dropped something and then ran in front of the bus, was struck and killed. The driver is not being charged, at least not yet, the article indicates the matter continues to be under investigation by the Iowa State Patrol. Questions about the driver’s focus and understanding of which way the boy would normally head home will be of interest. A photograph of young Justin can be seen by following this link. That article discusses the Kensett school bus death from May 10, 2011 involving Aaron Gunderson, 32 of Northwood. The article indicates vehicular homicide charges by operating a motor vehicle while intoxicated and then leaving the scene of an accident can be criminal sanctions for this type of accident. Drivers always have to keep a watchful eye on disembarking students.  Update: No charges are expected against the bus driver or the school. 

Slow down and leave more room to stop - Next we move onto West Des Moines, my stomping grounds and Interstate 35 where we have a multivehicle crash. In this crash for whatever reason, not explained, a southbound vehicle is described as having crossed the median and crashing into a northbound car. This article is kind of sketchy so let me check the ISP reports to see if there is at least a preliminary report. Update: The driver of what appears to be the at-fault vehicle was Danny Knowles of Des Moines. He was 58-years-old. I’m still waiting for the other drivers to be identified. Update: Police spokesman is Lt. Jim Barrett.

Trucking, give them room - One of many accidents on I-80 this one near Coralville-Iowa City around 7:30 pm killed a driver. This is a truck driver who hit the barrier, the Jersey barrier, then rolled onto the left side and caught fire. The carrier is Dart Transportation out of Cary, Illinois. This will in all likelihood result in a workers’ compensation claim. The widow, if any, should contact the Capron & Avgerinos firm that does good work out of Chicago, Illinois. They are a firm that handles workers’ compensation injury work. If it’s Iowa benefits they need or want we can help you. 515-222-1110 or sdlombardi@aol.com. I’ll check further reports and add to this post.

Can you say carbon monoxide poisoning - A metro Ice Arena mysterious illness is probably carbon monoxide poisoning from either the Zamboni or else a fresh air intake vent. Although Urbandale police did not find elevated levels they might check out venting where the patrons were seated. I’ve seen this up north at UNI where deliver trucks would park with engines running outside the facility, a lab, and the fumes were then being sucked into the building making the lab workers sick. I’ve covered carbon monoxide poisoning previously. Follow this link to the Lombardi Law Firm search for carbon monoxide poisoning.

Unexperience and Teen Driving - Onto Winneshiek County we head, where a one-vehicle crash killed a Minnesota teen and injured several others. Riding as a passenger in a Ford F-150 pickup truck Joshua Evers, just 18 out of Rochester, Minn. died as a result of personal injury caused by the collision. ” The injured include the driver, Brenden Christensen, 18, of Winnebago, Minn.; Bobby Wild, 19, of Lansing, Ia.; Shenyse Tharp, 18, of Holy Cross, Ia.; Trey Dylsin-Hillyer, 18, of Frost, Minn.; Keisha Kerr, 19, of Postville, Ia.; and Kristin Easley, 19, of Preston, Minn.”

According to the article from the Register Christensen was the driver and failed to negotiate the curve at 245^th Avenue to the north of 200^th Street. The accident happened at around 9:15 a.m.

Medical condition while driving - From northeastern Iowa we go again to central Iowa and specifically to Ames, Iowa and back again on I-35. In this car or bus accident the rock-band bus for Georgia rock band Widespread Panic died of a medical condition just prior to a series of collisions. I’ll update this post with names when I locate the accident report. I keep trying to persuade my wife that we should buy a rock band bus, make fake rock concert tickets and t-shirts, then get on the road giving them away. All across the country we will take pictures of people with promoting gullibility and having a great time. Update: Interesting enough this chain reaction is described as common when people driver and fail to leave enough room between the front of their car or truck the rear of the one to the front. Add speed and you’ve got a recipe for disaster.

Watch the road - On U.S. Highway 59 Marcella Schwery, 68 from Panama is thought to have crossed the center line hitting a car being driven by Christina Cotant, 26 of Avoca. It looks like three people were killed including Robert Schwery, 71 of Panama. Check out the article here. If the cause of this head-on collision is accurate then Schwery would be the at-fault driver, although if there was a medical emergency she may not have been excused from her fault. Interesting huh?

Playing by the rules - More charges came out of Polk County over the filmmakers’ use of tax credits. See the article here. These have to do with two California filmmakers. Can you say black eye?

The Economy makes people do stupid things - From Iowa Orchard we have the Great Pumpkin caper and 220 pumpkins going missing. Seems like a sign of these bad economic times. 

We thought proving ownership of the cow would be as easy as someone being honest and coming forward to admit ownership. But that's not how it's working in rural Iowa. Honesty about ownership is one concept you are not likely to find.

These are tough cases to prove as to who owned the cow. Ownership is extremely important and that means the lawyers need to be involved as quickly as possible.

Did law enforcement help? The Sheriff's are elected officials who look only so far probably not wanting to anger any of the locals. Not proving ownership in some ways gets them re elected. Law enforcement's paperwork on past instances where cows got out is in most instances, Sorry Charlie it's not available. The Sheriff's offices are little or no help. 

Local knowledge washes away with the filing of a lawsuit. If there is no lawsuit every farmer will know who’s cows regularly get out onto the highway and who has lousy fences. File suit and it’s like you are on another planet. Everyone has amnesia. The locals go mute because they are for the most part deaf, dumb and half blind.

Yet everyone knows how many cows they own, where they are and I'm sure someone took a tax-write-off for a dead cow. Still no one is missing a cow.

What about tax write-offs for death and depreciation schedules? You'd be surprised how many floods rural Iowa has and how many farmers keep their tax returns in locations in the house that flood. File one of these suits and you'll soon see the flooding in Iowa’s farm basements is Biblical. Noah must be living in the basements of Iowa's farms.

Anytime you read of such a case and either know the family involved or the family comes to you for advice DO NOT SIT ON THE CASE. If you don't know what to do get someone involved that does and do it quickly. If you really don't understand the case law or proof problems refer the case and move on with your practice. Like I said the proof problems are extremely difficult and the paper trails are for the most part in the hands of farmers who don't give them up very easily.

I’ll bet if I was rustling cattle everyone would know whose cow it is that I stole. Moooooo...

The local Sheriff, a farmer and their tax preparer. Iowa's best and brightest. Do as I say not as I do.

In a recent case two people were sentenced to long prison terms for this very thing. See Iowans sentenced in meth case stemming from fire, Fort Dodge, Iowa, The Messenger. Aug. 30, 2011.

For more information search Youtube for “methamphetamine explosions”. 

See link, link, link, link, link and link.

Manufacturing methamphetamine and your neighbor’s safety, Lombardi, January 8, 2010

Methamphetamine and the risk of explosion, Lombardi Law Firm, January 15, 2010

Before talking to the insurance adjuster or defense attorney or the case mismanager remember this from I Claudius, don't touch the figs.

The premise held by most clients is that this system of law is fair. They'll say they want only to be treated fairly. When representing themselves they make the assumption that when defense lawyers talk to you they will be fair. Well I'm here to tell you, you had better not trust in being treated fairly. I mean exactly that and it has nothing to do with whether or not the defense lawyer or the insurance company is dishonest. They don’t have to be “honest” and they aren’t trying to be “fair”. Fact is they are hoping you aren’t smart enough to ask the right questions so they don’t have to not answer you. You think I’m kidding? Hell no. I’m not and I can prove I’m right. Here let me prove it to you.

Defense work has nothing to do with treating people fairly. If it did you could come up with the name of at least one defense lawyer who has said in the past, "I don't think you're asking for enough, can I pay you more?" Or, "Did you know you're entitled under the law to be paid more for your damages?” Go ahead find me one insurance company representative that has said that in the entire history of insurance. Go ahead, think real hard; I can wait, go ahead and think harder.

Umnnn dee dum, dee-dum... Have you remembered one? No? I didn't think so. I've not heard anything like that in 30 years.

Updated: This is too funny. I had a link to an insurance company's YouTube ad and they actually took it down so I could not tag them with how deceptive it is. Can you believe it? Yeah that's what they do. They advertise when they need more money, lie to you the premium payer and then when we lawyers point it out they take down what they said to erase the lie. That's reality folks, that's the insurance industry. 

In other words the defense lawyer's job is to treat you in a way to take advantage of your ignorance of the law as well as your mistakes. Frankly because this isn't about fairness their job is to treat you unfairly. Ethically they can, do and must treat you unfairly as most people think about the idea of fairness.

Fairness dictates honestly and with openness and candor. But ethics require the lawyer to maintain confidences provided by the client. I as your lawyer have to be candid and open with my client and if you're my client I act ethically. But the insurance company's lawyer isn't your lawyer and you the injured person aren't his client. So candor isn't going to be happening between the two of you. That's not the hand of a friend reaching out to shake your hand; the handshake being a sign of friendship, but this one is not one from a friend. Never confuse friendliness with friendship. The two are not one and the same.

The defense attorney or the insurance company representatives are like the slithering snake that delivers the poison being slipped into the wine goblet from which the injured drink.  Now you understand the legal concept of "fairness".

What about that "knowledge you can count on" pledge? After Merriam it sure seems to ring hollow.

Remember those Farm Bureau agents saying they make insurance simple? Here get caught up and listen to the agents telling you how simple they make insurance so you can feel good about your future; and then there is the make simple by providing knowledge you can count on. As you listen ask yourself if somewhere in there, there is a promise.

http://www.youtube.com/watch?v=BFMnwpw-LLg

Here listen again to the Farm Bureau insurance made simple pledge and then let’s see how it plays out in real life.

http://www.youtube.com/watch?v=P4DHSGeuQQE

Remember what you just heard. Come on it's all pretty simple to remember. Basically you can trust us to make it simple for you. Got it?

I argued this same issue in the early 80’s and it came out the same then. After you read the issue and the result, like me you’ll wonder why they call insurance sales a profession. Used car salesmen have a higher duty to the public than do insurance salespeople. Their only duty is to hand you an application, to bind the insurance when asked or instructed and to fax the application to the insurance company. Beyond that their days are taken up with saying “No”, cashing checks, buying plane tickets to insurance conferences and playing golf.

The Iowa Supreme Court has sided with an insurance agent in a case involving whether or not the agent had a duty to advise his clients as to the need for insurance coverage about which the clients had not inquired.

In considering an appeal brought by plaintiffs Timothy L. Merriam and Justine Merriam against their insurance agent, Steven Stonehocker, the high court affirmed a decision by a lower court that determined Stonehocker had not “breached his duty of care to act as a reasonably prudent insurance agent when he failed to advise and recommend that Timothy Merriam, a self-employed over-the-road truck driver, procure self-employment workers’ compensation insurance.”

“The plaintiffs contend Stonehocker‟s knowledge of Timothy‟s self-employed status and million dollar life insurance policy was sufficient to trigger a duty of inquiry on Stonehocker‟s part. The fact that Stonehocker was a trained and licensed insurance agent with arguably “superior knowledge as to what insurance products someone in [Timothy‟s] position would require to be adequately protected from injury or loss” cannot be the basis to find an implied agreement to expand Stonehocker‟s duty. If that were the case, then every trained and licensed insurance agent would have a duty to provide an assessment of all of an insureds‟ insurance needs, whether requested or not. As previously discussed, we have never held this to be the law in this state. Under the principles set forth in Langwith, the plaintiffs have failed to establish a genuine issue of material fact exists that there was an expanded agency agreement requiring Stonehocker to advise the plaintiffs regarding self-employment workers‟ compensation insurance for Timothy. Because Stonehocker is not liable to the plaintiffs, Farm Bureau cannot be vicariously liable. The district court‟s ruling granting the defendants‟ motion for summary judgment is affirmed.2”

What happened to it being so simple? So if this is true then are we still in good hands and good neighbors of you know who?

Follow the link to read the decision. Citation: Merriam vs Farm Bureau Insurance Services, No. 08-1635 (Iowa 2011) Combatants (Attorneys): Marc Humphrey for the appellants and Brian Campbell for Appellees. Go Marc! Justice Cady wrote the decision. Lower court decision Affirmed. Ouch!

I wonder if Mr. and Mrs. Merriam wanted to be the buffalo?

http://www.youtube.com/watch?v=gRS4shfH1Pw

Iowa Supreme Court: Agent not Required to Suggest Unrequested Coverage
Insurance Journal
The Iowa Supreme Court disagreed with that assertion. “The Merriams made no specific inquiry with respect to self-employed workers' compensation insurance ...
See all stories on this topic »

Sorry Charlie! Me no comprehend?

No but you can get a CT Scan.

Oh come on I love that joke and yes to me it is funny.

One area many people have questions about are property damage claims. These claims arise from accidental, fires, commercial construction defects, storms including lightning, hail, water, floods, freezing, thawing and may include broken glass, stolen property and a host of other casualty risks. I’ve started a section on the law firm’s website for answering questions and providing links to various articles and news stories that discuss property damage.

I thought is was important to include this section on property damage claims and how to get paid after it's damaged or destroyed since most people would rather award damages for a press than pain and suffering. (Cough-cough Mike.)

This isn’t an area of the law most lawyers gravitate too naturally. That’s because most property damage claims are not significant from a monetary standpoint. Some are, like having a $3 million building burn to the ground due to negligent construction workers hired by a subcontractor. Some property damage claims are just a bent fender that leads to a loss of use and diminished sale value at a much later date. Assuming the car isn’t totaled the loss of value for an expensive car, SUV, truck or a motorcycle can be significant and can’t be ignored by the owner.

In another case for a client, the owner had two-weeks previous to the accident purchased the car brand new for $90,000. The insurance company said, hey we are going to fix it. And they could because the cost to repair wasn’t anything close to being $90,000. But what about the loss of value to the owner on resale or trade-in? Of course that would be a huge drop in trade-in value or resale value and must be taken into consideration. This is just one example.

Another area is livestock mortality insurance. Some people will find  this hard to believe but a good show cow, a bull or a horse can make thousands of dollars for the owner. So what is lifestock mortality insurance? It’s sort of like life insurance on your cattle and horses. If the animal dies from an accident, a disease or an illness the insurance pays off to the livestock owner. Although people think of their pets as more than just property, the law doesn’t. So normally animal injuries or death cases are confined to the value of the pet to the owner; pain, suffering and emotional damages being ignored by the law. That being what it is, it’s usually what you paid for the animal or what it makes for you economically; such as a racehorse or stud service. Great American sells this kind of insurance as does State Farm and most major insuers.

There are farm claims for machinery like tractors, skid loaders, combines, discs and other farm implements destroyed or damaged by an accident and these require someone with knowledge of the value of it post accident; damaged, but repaired equipment. So stay friendly with your local implement dealer, you never know when you’ll need their opinion sometime in the future, about value.

If you have a property damage claim and don’t mind sharing your story I’d like to invite email with questions, comments and stories about property damage claims.  Property damage claims section on the Lombardi Law Firm website.

For good advice see a lawyer and if you have questions about this blog, the law or your case write or call me directly. Steve Lombardi, sdlombardi@aol.com and 515-222-1110.

WHY IS A WORKING SMOKE DETECTOR VITALLY IMPORTANT TO YOUR FAMILY'S SAFETY?

There is always a delay from the time the fire starts until the fire fighters arrive. Obviously the quicker your family receives a warning the sooner they can get safely out of the burning house. That means you need some system in place for an early warning. The significance of operable smoke detectors should be clear. Yes? No? If no, then go back and reread what I just wrote.

1. Install at least one smoke detector on every level of your home.
2. Replace the smoke detectors every ten years. Same applies to hard-wired ones.
3. Develop a fire escape plan for your home.
4. Keep combustible materials at least 3 feet from any ignition source. The ignition sources are your furnace, stove, water heater, fireplace and stuff like that.
5. Install a carbon monoxide detector near the bedrooms in your home. Replace them as indicated by the manufacturer.
6. Fire extinguishers should be in your home and checked annually. They need to be rated “Class ABC” fires.
7. If you’re building new then consider a residential fire sprinkler system. That’s probably pretty expensive but you might as well have it quoted so if you say no you know why.

So be aware there is a free smoke detector installation program for all homes where a Pre-K and elementary age student resides in the State of Iowa. Fill out this form. I’ll also upload it to the Lombardi Law Firm website, the Verdict. Form for Smoke Detector Project.

UPDATE: I was informed the link to the DPS page wasn't working. If still not working then follow these instructions. If this link doesn't work then go to the Iowa DPS main page and search for "free smoke detector". If you are not able to locate it there then follow this link to the Lombardi Law Firm site and open the downloaded form.

2009 Iowa Code - Title 14 – Property - Subtitle 2 - Real Property - Gifts
CHAPTER 562B - MANUFACTURED HOME COMMUNITIES OR MOBILE HOME PARKS RESIDENTIAL LANDLORD AND TENANT LAW

Iowa Fire Marshall Home Page

Iowa Fire Marshall Press Releases

Iowa Fire Marshall Smoke Detector Project

Iowa Mobile Home Landlord and Tenant Duties, National Conference of State Legislatures

Fires seem to be in the news. There is the one in Keota, Iowa downtown that burned several buildings and has been ruled arson. Is this the new Urban Renewal in action? The fire chief is reported to have stated it was intentionally set.

And in Manchester, Iowa a lumber products store caught fire and burned causing $1.7 million in damages on Saturday.

Apparently in Blockton, Iowa a mobile home caught fire. see Officals identify man who died in fire near Blockton.

Two families lost their homes to fires just before Christmas. That is being reported by KCCI from Marshalltown.

A kitchen fire damaged a Cedar Falls home. The building is owned by the University of Northern Iowa.

Three escaped from a house fire reported on December 18^th. The address is reported as 3203 Mondamin Avenue at 8:35 a.m. in Marshalltown. Slide show.

And a blizzard filled a house with snow in Newell, Iowa. Just don’t turn on the heat before you shovel it out. There is a video of the snow filled home. Wind gusts of 50 mph and 5 inches of snow can fill a hallway pretty quick. It’s reported a door blew open.

An east side man from Des Moines was rescued from a burning house by neighbors and firefighters. The address is 2341 Lyon Street. There is a video on this one on the Des Moines Register website.

Remember to check your smoke detector batteries; it's that time of year again. We have a very busy week at the office so these blogs have to be short, not that there isn't a lot in the news that I'd like to discuss. Everyone is busy so the break in storm weather here in central Iowa is a relief. Enjoy your holiday week but be very careful while driving and don't drive buzzed.

Merry Christmas and a Happy New Year from Lombardi Law Firm

Well, being a father I can imagine what you're thinking. Hang in there with me for a moment because this is really about you. As a lawyer let me ask you a question: How is her buying that car any different than the what most of us do when buying a condominium or a townhouse?

The "normal" way people buy a condo or townhouse.

The real estate agent shows you a condo or a townhouse and tells you all about what a good deal it is. They provide the bare bones disclosures required by law and you make an offer to purchase, negotiate and then buy it. You did all of that without knowing anything about the financial well-being of the homeowners' association. (HOA) All the while you want to trust the integrity of the realtor. You paid for professional services, which you assumed meant the realtor was there to protect you; but were you protected?

Did the realtor protect the buyer or the seller? Who protected you the buyer?

Let me be of some assistance with your next purchase, because there is big trouble coming for many HOA boards and chances are it will be dropped right on your doorstep. There is a lot of flooding going on in Iowa and it provides a good opportunity to explain to you a defect in the way you buy real estate.

Should Iowan’s sitting on HOA boards carry large liability policies for errors and omissions?

If you’re on a HOA and sit on the board you should seek legal advice and a review of the insurance coverage the HOA has purchased. Most people on condominium, townhouse and other HOA boards are ignorant of the liability they assume when sitting on the board. For many people the power trip is great, but when something breaks that causes others to suffer financially the board can be placed in a position of being sued for not protecting those they were responsible to protect.

Remember that waste ponds are dams – Just ask Iowa Beef Processors

Now let us get to the meat of today's post. Barbara and I recently research the condominium markets in two completely different markets. Our search was associated with our children attending graduate schools.  In looking at these two different condominium market I was puzzled, then shocked to see how many associations are underfunded with paid-up reserves showing on the balance sheet.

What are paid up reserves and why should a HOA have money set aside?

Every day a person lives in a complex they need to be paying into reserves or "savings accounts" for future repairs. Living in a condo isn't supposed to be a free ride for financially irresponsible homeowners. A building is collection of systems. These systems eventually require repairs and replacement. Building systems depreciate, wear out, break or are destroyed by casualties. Insurance doesn’t cover the first three; only the last, casualty. So HOA’s need to be setting money aside in separate accounts that cover things like roof repairs, heater and AC replacements or major repair work to the sidewalks and parking lot. If money isn’t set aside, then sooner or later major repairs will force the board to make a special assessment and that can lead to lawsuits against those in charge of the HOA. If sued you can bet the HOA will get into how the board has spent the money entrusted to them. And if money has been wasted, like paying friends to do unnecessary work, you may be personally liable.  This is no joking matter and nothing for amateurs to get a big head about and not educate themselves about what is involved. Sitting on a board is work.

Future litigation trend over lower valuations and increasing assessments.

Be forewarned that low monthly dues, a lack of reserves on the balance sheet and boards ignoring these issues are a game of musical chairs. Purchase prices need to reflect balance sheet reserves or the lack thereof. Purchasers who focus on low monthly dues are missing the point that will surely circle around and bite them where most men carry their wallets. In other words don’t think paying low monthly dues is a good thing and then agree to pay a higher price for the condominium or townhouse. Low monthly dues mean you should pay less, not more to buy the condo or townhouse. Before purchasing a condo or townhouse ask to see the balance sheet to know what the reserve accounts show. No reserves or low reserves? Then consider looking elsewhere! Those may be the sign of a poorly run HOA.

Who is managing the property? Is it a professional organization that has set realistic reserves?

And those of you sitting on the boards need to review E&O insurance coverage before saying, “I do.” That board seat may be set on a trap door.  In the case of Lake Delhi, I have to wonder if the board realized if dams require specific knowledge of an engineer to know whether it is operating in a safe condition.

Running a HOA is a complicated job requiring constant vigilance. There are many complex and difficult issues to properly run a HOA that can’t be covered in this article; but take a moment to consider how a resident cooking meth in their condo unit can pose difficult issues for the board and how the board should deal with that situation. Not dealing with them can cause loss of life and enormous property damage.

Bottom line is, if you're going to sit on a condo board you can't sit idly by hoping for the best and not planning for the worst.

Questions to ponder:

• Are low condo dues a good or a bad thing?
• Should lower condo dues cause purchase prices to go up or down?
• Is your condo association minding the store?
• Is your condo association sending you down the lazy river?
• What's wrong with this condo association board?
• Why should condominium association boards carry liability policies?
• What is errors and omissions insurance coverage?
• Is my board chair sitting on a trap door?