Sunday, April 17, 2016

Wells Fargo admits deception in $1.2 billion U.S. mortgage accord



Wells Fargo & Co (WFC.N) admitted to deceiving the U.S. government into insuring thousands of risky mortgages, as it formally reached a record $1.2 billion settlement of a U.S. Department of Justice lawsuit.

The settlement with Wells Fargo, the largest U.S. mortgage lender and third-largest U.S. bank by assets, was filed on Friday in Manhattan federal court. It also resolves claims against Kurt Lofrano, a former Wells Fargo vice president.  

According to the settlement, Wells Fargo “admits, acknowledges, and accepts responsibility” for having from 2001 to 2008 falsely certified that many of its home loans qualified for Federal Housing Administration insurance. MORE

Sunday, February 7, 2016

Arkansas homeowner wins verdict for damages caused by vibrations from nearby oil drilling operations


 

The federal Eighth Circuit Court of Appeals has affirmed a jury verdict in favor of a landowner who alleged her home was damages by vibrations from drilling operations. The judgment in favor of the plaintiff was affirmed in Hiser v. XTO Energy. Inc., No. 13–3443 (8th Cir. Oct. 3, 2014).

Ruby Hiser filed a lawsuit against XTO Energy Inc. in Arkansas. Ms. Hiser had lived in her home for six years before XTO began drilling operations nearby. XTO began drilling a gas well on property adjacent to Ms. Hiser’s home in February 2009. According to Ms. Hiser, it was around this time that she started feeling vibrations. Ms. Hiser testified at trial that she feels the vibrations and hears her house “crackle” when XTO’s drill is in use. She testified that people who stayed the night in her home also felt the vibrations. Several witnesses also testified at trial they had felt the vibrations when visiting Ms. Hiser’s property.

Justin Hall, a licensed professional engineer, examined Ms. Hiser’s home on June 5, 2009. Mr. Hall testified that he could hear the nearby drilling during his inspection of Ms. Hiser’s home. Based on his experience, the inspection, and the proximity of the drilling equipment to Ms. Hiser’s home, approximately 150 feet at the time, Mr. Hall concluded that XTO’s drilling was the source of the vibrations. Mr. Hall opined that the damage to Ms. Hiser’s home is consistent with vibrations from drilling, not the result of poor construction.  MORE
 


The federal Eighth Circuit Court of Appeals has affirmed a jury verdict in favor of a landowner who alleged her home was damages by vibrations from drilling operations. The judgment in favor of the plaintiff was affirmed in Hiser v. XTO Energy. Inc., No. 13–3443 (8th Cir. Oct. 3, 2014).
Ruby Hiser filed a lawsuit against XTO Energy Inc. in Arkansas. Ms. Hiser had lived in her home for six years before XTO began drilling operations nearby. XTO began drilling a gas well on property adjacent to Ms. Hiser’s home in February 2009. According to Ms. Hiser, it was around this time that she started feeling vibrations. Ms. Hiser testified at trial that she feels the vibrations and hears her house “crackle” when XTO’s drill is in use. She testified that people who stayed the night in her home also felt the vibrations. Several witnesses also testified at trial they had felt the vibrations when visiting Ms. Hiser’s property
Justin Hall, a licensed professional engineer, examined Ms. Hiser’s home on June 5, 2009. Mr. Hall testified that he could hear the nearby drilling during his inspection of Ms. Hiser’s home. Based on his experience, the inspection, and the proximity of the drilling equipment to Ms. Hiser’s home, approximately 150 feet at the time, Mr. Hall concluded that XTO’s drilling was the source of the vibrations. Mr. Hall opined that the damage to Ms. Hiser’s home is consistent with vibrations from drilling, not the result of poor construction.
Mr. Hall conducted a second inspection in January of 2011. He observed that the drilling area had moved closer to Ms. Hiser’s home. Mr. Hall noted, among other things, excessive shifting of the foundation and numerous nail pops in the sheetrock uncharacteristic of normal foundation settlement. Mr. Hall again attributed the damage to nearby drilling and vibration.
At trial, Ms. Hiser testified that she spent approximately $30,000 repairing her home. Mr. Hall testified that, based on his examination of Ms. Hiser’s home, it would cost $55,000 to repair the damage. Ms. Hiser also testified that she was not able to enjoy her house the same way she did before XTO started drilling and that she experienced noise on and off for approximately two years.
There was also evidence at trial that Ms. Hiser complained early and often about XTO’s drilling. She first complained in February 2009, shortly after XTO began drilling its first well on her neighbor’s property. XTO drilled six gas wells on Ms. Hiser’s neighbor’s property between February 2009 and August 2011. Despite Ms. Hiser’s insistence that the drilling was causing damage to her home, XTO never had a construction expert examine Ms. Hiser’s property. Instead, it relied on the assessment of Jay Jones, one of its landmen. XTO did not offer to test for vibrations until after Ms. Hiser filed her lawsuit and after substantial damage had been done to her home.
The trial resulted in a jury verdict in favor of the plaintiff on Ms. Hiser’s claims of negligence, private nuisance, and trespass under Arkansas state law. The jury awarded Ms. Hiser $100,000 in compensatory damages and $200,000 in punitive damages.
XTO appealed the verdict to the Eighth Circuit. On appeal, XTO argued that a new trial was warranted because of evidence the trial had discussed fracking during deliberations but no evidence regarding fracking had been presented at trial.
- See more at: https://www.hop-law.com/arkansas-homeowner-wins-verdict-for-damages-caused-by-vibrations-from-nearby-oil-drilling-operations/#sthash.5yt9iGuC.dpuf