Category Archives: Litigation

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The Doctrine of “Consentable Lines” Resolves Some Property Line Disputes Between Adjoining Land Owners

Posted in Litigation

One of the most common sources of litigation involving real property is that of disputes between adjoining property owners. Of these disputes, many involve a disagreement regarding where the property line between the two parcels of land is actually located, and one party’s objection to his neighbor’s use of the property beyond the legal boundary between the properties. Pennsylvania has a well-developed practical approach to such disputes where a line between the properties has been respected and acquiesced to for a requisite period of years.

The Pennsylvania Fraudulent Transfers Act: A Useful Tool to Avoid Debtors’ Sham Sales of Assets and Turn Judgments into Dollars in a Slowing Economy

Posted in Business & Corporate, Litigation

The Pennsylvania Uniform Fraudulent Transfers Act, (PUFTA) 12 Pa.C.S.A. ยง 5101 et seq., grants a statutory remedy to creditors where a debtor has acted to hinder his creditors and identifies several factors for scrutinizing transfers as fraudulent to creditors. Where a transfer has been proven to be fraudulent as to a debtor’s creditors, remedies available to a creditor include voiding the fraudulent transfer, attaching the transferred property, injunctions against the debtor’s future disposition of assets, and Court appointment of a receiver to take charge of fraudulently transferred assets.

New Amendments to the Pennsylvania Mechanic’s Lien Law Permit Up-front Waivers for More Residential Projects

Posted in Business & Corporate, Litigation

Many Contractors may have become familiar with the recent Amendments to the Pennsylvania Mechanics’ Lien Law which became effective in January of 2007. Those Amendments were the first Amendments to the Law since the Law’s adoption in 1963, and reflected an effort on the part of the Pennsylvania Legislature to re-assert the Contractors’ and Subcontractors’ right to file Mechanics’ Liens for non-payment by restricting effective Up-front Lien Waivers and providing a bonding procedure to ensure payment where Up-front Waivers were required

Demolition, Excavation, and Landscaping under the Pennsylvania Mechanics’ Lien Law

Posted in Business & Corporate, Litigation

Often times, Demolition contractors and Landscaping contractors will ask whether their services and the materials used in their trades constitute a proper basis for a Mechanics’ Lien Claim in order to preserve a likelihood of payment. Knowing what is, and what is not properly lienable work and materials is something that every contractor should be mindful of when assessing different jobs.

Squeeze-Out Technique: Withholding Information

Posted in Business & Corporate, Litigation

Many times a majority shareholder seeking to squeeze-out a minority shareholder will deliberately withhold information relating to the closely held corporation. Withholding information is usually coupled with another form of oppression. The reason for the same is by leaving the minority shareholder in the dark about the status of the corporations and the actions of its officers and directors the minority shareholder will be unaware of the other forms of oppression.

Sheriff’s Sale of Property Following Foreclosure Can Extinguish Mechanics’ Liens

Posted in Business & Corporate, Litigation

Prior to the Amendments to the Pennsylvania Mechanics’ Lien Law of 1963 which became effective January 1, 2007, Mechanics’ Lien Claims were granted priority over Mortgages against the liened property that were recorded after the effective date of the Lien. Under the old law, a Mechanics’ Lien Claim representing amounts due to the Contractor for erection or construction “related back” to the start of work on the property, and Liens representing amounts due for alteration and repair dated from the filing of the Lien Claim.

Judgment Creditor Not Entitled to Debtor’s Membership Interests in Limited Liability Company Unless Operating Agreement Provides Otherwise

Posted in Business & Corporate, Litigation

In Zokaites v. Pittsburgh Irish Pubs, LLC a case decided in December, 2008, the Superior Court of Pennsylvania held that a judgment creditor may not receive a debtor’s membership interest in a limited liability company, unless the operating agreement of the company allows it. A judgment creditor is a person who has successfully won a judgment for a sum of money to be paid by a debtor.

Pennsylvania Mechanics’ Lien Law

Posted in Business & Corporate, Litigation

Important changes to the Pennsylvania Mechanics’ Lien Law of 1963 became effective on the first day of 2007. A Mechanics’ Lien is a non-exclusive statutory remedy that permits certain contractors and subcontractors the protection of a lien against a property for amounts due and unpaid which are attributable to labor and/or materials used in a private construction project.