Monday Morning Briefing Letter - 12/12/2005 (Plain Text Version)

By David F. Wilson, NAHB President and
Jerry Howard, NAHB Executive VP and CEO

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Halfway to a fair shake on Canadian lumber duties

is as far as the U.S. Commerce Department is willing to go in the latest incomplete, albeit positive, development in the effort to achieve free trade of softwood imports from our northern neighbor.

Commerce has reportedly decided to cut duties on Canadian lumber imports by nearly half, from 20.2% to 10.8%, despite the fact that NAFTA binational appeals panels have called for complete elimination of these hidden fees that add thousands of dollars to the cost of American homes. Canadian imports are essential for U.S. home building because there simply aren't enough trees available for harvesting in this country to meet all the demand that we have for new homes. Such imports actually account for more than one-third of the entire lumber supply used by the U.S. residential construction industry. The newly reduced fees, which are expected to take effect in about one week, include a countervailing duty of 8.7% (down from 16.2%) and an anti-dumping tariff of 2.1% (down from 4%). NAHB continues to call for complete elimination of tariffs and fees on imports of this essential building material. See our press release or contact Michael Carliner, x8376.

A new Supreme Court decision benefits NAHB members

who operate through multiple affiliates on a nationwide scope and are more apt to confront legal challenges at the federal rather than state level. In a case for which NAHB helped prepare an amicus brief in conjunction with 11 other real estate groups, on Nov. 29 the Supreme Court reaffirmed the right of a defendant to "remove" a case from state to federal court when the two involved parties are citizens of different states and the claimed damages exceed $75,000.

In Lincoln Property Co. et al v. Roche, a Texas-based property manager was sued in Virginia state court by tenants who claimed health problems and property damage stemming from mold inside their apartment. The property manager then removed the case to federal court based on citizenship grounds and won a summary judgment that dismissed the mold-related claim. But the Fourth Circuit reversed this decision and instructed that the case be returned to state court because it found that a Lincoln affiliate (which was not sued) was involved in managing the property in Virginia. In a unanimous decision, the Supreme Court agreed with Lincoln's claim that the 4th Circuit erred when it looked beyond the named defendants in the complaint to determine whether diversity of jurisdiction existed.

Not only does this decision preserve the original mold verdict in the underlying case, but it provides a solid precedent for future court actions in which a company must defend itself from a legal challenge outside of its home state. Contact David Jaffe, x8317, for details. [return to top]

Donate building materials to help hurricane victims

now that reconstruction efforts are underway. In the wake of the incredible devastation in New Orleans and across the Gulf Coast states, many NAHB members have already called in their offers to donate building supplies and products. We're now directing these donations to Gifts in Kind International, an organization whose primary mission is to serve as a donation conduit between for-profit companies and nonprofit organizations. Companies that donate to Gifts in Kind can earn a tax deduction for up to twice the value of their contribution. NAHB members such as Sears and Maytag are already working with Gifts in Kind, but the charity can accept product donations of any size. Anyone interested in participating can complete Gifts in Kind's Product Donation Agreement online, then fax it to Doyle Delph (877) 798-3192. Your NAHB contact for more info is Kym Kilbourne, x8447. [return to top]

Discounted online registration for IBS ends Dec. 16!

If you haven't already gone to www.buildersshow.com and registered to attend the International Builders' Show (IBS) in Orlando this January 11-14, now's the time. You have until Dec. 16 to get discounted, online registration and ensure that you'll receive your show credentials in the mail ahead of time. Incredibly, NAHB is expecting to set ANOTHER attendance record this year, with more than 100,000 visitors anticipated. That's a real achievement for our second consecutive year in Orlando. Not only will there be 1,600+ exhibitors showing the latest in home building products and services spread across more than 40 football fields worth of space (bring comfortable shoes), but there will be more than 200 educational sessions designed to help you improve your business. Be sure to arrive in time for Grand Opening Ceremonies, where our keynote speech will be delivered by the esteemed retired general and former Secretary of State, Colin Powell. See our press release for exhibit floor and onsite registration hours, and go to the www.buildersshow.com Web site to register. [return to top]

Look out for NAHB members on Extreme Makeover: Home Edition

because often enough, that's where you'll find them. The latest do-gooder is Bob Fetzer, a member of the Roanoke Regional HBA in Salem, VA. Bob's company, Building Specialists Inc.,is helping to completely remodel a home for the well-deserving Crawford-Smith family, who was chosen by ABC from a pool of thousands of potential candidates. ABC also hand-picked Building Specialists to work with the show's celebrity design team to create what is bound to be a spectacular new home. Get more information online, including details on how you can drop by and observe the whole process while the show is being taped — that is, if you happen to be in the area. Extreme Makeover: Home Edition airs Sundays at 8/7c on ABC. Congratulations, Bob, and thanks for showing beyond a doubt that "Home Builders Care" this holiday season! [return to top]