A contractor and a building inspector have been indicted on homicide charges in connection with shoddy ventilation work that led to the 2008 carbon-monoxide poisoning of a Denver family at an Aspen-area vacation home.

Marlin Brown, owner of Roaring Fork Plumbing & Heating, and now- retired City of Aspen building inspector Erik Peltonen were each indicted on four felony charges of criminally negligent homicide. The two, as well as Brian Pawl, a Pitkin County building inspector, also face misdemeanor counts of reckless endangerment. The indictments were announced Sunday.

The charges follow a Pitkin County grand jury investigation into the deaths of the four-member Lofgren family, who had won a Thanksgiving 2008 stay at the house.

Assistant Deputy District Attorney Arnold Mordkin said Brown installed the boiler and venting system at the $8.95 million home on Popcorn Lane, east of Aspen. Peltonen, a city employee working for Pitkin County, inspected the home.

Pitkin County sheriff’s investigators concluded that dislodged venting pipes for the boiler that handled hot water and the driveway-snowmelt system flooded the home with “extreme levels” of carbon monoxide as the family slept.

According to police reports, 8 feet of exhaust pipe was unattached between the boiler and the vent outlet. Deputy Brad Gibson wrote in a report that it did not appear the PVC exhaust pipe had ever been glued together.

Gibson also reported that several experts who investigated the scene did not find any carbon-monoxide detectors, even though a 2005 inspection report mandated the installation of the alarms.

One boiler specialist, Mark Passamaneck, told investigators he thought the installer of the leaking boiler was “reckless” and the installation “was not done to a reasonable community standard,” Gibson wrote.

Gibson also toured the home with Brown, who worked on the home sporadically from 2004 to 2005. Brown told Gibson he could not remember if he used glue to seal the joints of boiler exhaust pipes.

Still, Pitkin County Sheriff Bob Braudis in January 2009 said the evidence did not support negligent homicide charges. He forwarded his investigation to Mordkin, who asked a judge to empanel a grand jury, which convened in July 2009. A week shy of a year later, the 12-member grand jury made its decision.

Brown and Peltonen were arrested and released on $11,000 bond. Pawl was released on a summons to appear. The three will make their next court appearance Aug. 16.

“This took a long time,” Mordkin said. “This is a very serious situation, and you don’t want to rush and you don’t want to make mistakes.”

Denver investment banker Parker Lofgren, 39, his wife, Caroline, 42, and their children, 10-year-old Owen and 8-year-old Sophie, were found dead by friends in the home’s master bedroom the day after Thanksgiving 2008.

Picture Source: ABC News - http://abcnews.go.com/US/story?id=6376209&page=2

The Lofgrens had won a stay at the house as part of a fundraiser at Denver’s St. Anne’s Episcopal School. The house was owned by Jonathan and Carla Thomas, whose children also went to St. Anne’s.

The home’s master bedroom was above a utility closet that housed the leaking boiler. The children, who had apparently awakened in the middle of the night, were found on the floor of the bedroom. Both parents were in bed, with Owen near his father and Sophie near her mother.

Relatives of the Lofgren family said they were grateful for the indictments.

“We feel their deaths were absolutely preventable and we are not surprised with this outcome,” said Hildy Feuerbach, Caroline’s older sister. “I think the negligence there was just shocking. . . . It’s a tragedy that could have been averted if the people involved had done their jobs with reasonable care.”

Mordkin said the home, which was for sale for $8.95 million, had been approved for residency by county inspectors in 2005 or 2006, roughly a year after it was built.

At some point, the building-inspection process broke down, Mordkin said.

“That is our contention,” he said. “Once the house is inspected, it is not the building inspector’s job to make sure somebody does not do something stupid. That would be very unfair.”

Messages left for Brown at his Glenwood Springs shop were not returned. A woman answering the phone at Peltonen’s Basalt home said he, on advice from his lawyer, could not comment. Pawl could not be reached.

Pitkin County Commissioner Michael Owsley said Pawl and Peltonen, the latter of whom he has known for more than 40 years, are “some of the most outstanding employees we have.”

“These guys are dedicated public servants who woke up every day thinking about public safety,” Owsley said. “I’m sure they are devastated and their families are devastated. The Lofgren tragedy was bad enough, and this, as far as I’m concerned, makes this an even greater tragedy.”

Pitkin County attorney John Ely said he needs direction from the county commissioners on how to proceed in terms of defending the county’s employees.

“This is something totally outside the box,” said Ely, noting a lack of legal precedent or protocol.

The Lofgren deaths, as well as the January 2009 carbon-monoxide poisoning death of University of Denver student Lauren Johnson, prompted Colorado lawmakers in March 2009 to pass a law requiring carbon-monoxide detectors in most homes. The odorless gas kills as many as 500 Americans a year, primarily from poorly maintained furnaces and gas stoves, according to the federal Centers for Disease Control and Prevention.

The Lofgren family, in a statement, said the criminal charges and pending civil action “will send a clear message to contractors, and building inspectors and even manufacturers of heating equipment to ensure that such senseless carbon-monoxide deaths are prevented in the future.”

It just goes to show that whether it is a old run-down 2 bd – 1ba home that you have a rental or a multi-million dollar home in Aspen, you can never be too safe.  Especially with the deadly carbon monoxide issue!

This Post was archived directly from the Denver Post – To contact the author please see attached:

Jason Blevins: 303-954-1374 or jblevins@denverpost.com

Foursquare, launched in 2009, is a hot mobile social media platform self-described as a “friend-finder, a social city-guide and a game that rewards you for doing interesting things.” 

So far Foursquare has been very successful with

• Individual users
• Media outlets, such as The New York Times and The History Channel
• B2C (Business to Consumer) companies, like Starbucks and McDonald’s

But B2B companies have yet to embrace Foursquare. Many see it as having limited utility and aren’t quite sure how to leverage it, so they don’t see it as a viable business application.

So are there ways B2B companies can use Foursquare to reach new customers or promote their brand? Let’s get creative and look at some of the ways B2B companies can follow the lead of other Foursquare adopters to market their products or services.

Using Foursquare to Promote Events and Tradeshows

Early adopters have already been using Foursquare successfully to promote events and tradeshows. Back in January, Intel partnered with Foursquare during the Consumer Electronics Show (CES) and offered unique badges and freebies for check-ins. Foursquare hasn’t introduced the event function on mobile applications yet, but B2B companies can follow simple steps to implement it.

• Start by creating a new profile for your event.
• Then, add the venue and event description.
• Use the “Tip” function to broadcast event updates, incentives, and nearby meetings and venues to event participants.
• Encourage check-ins, engage participants and reward them.

Also, don’t forget to flag the venue as closed after the event is over.

Integration with Other Social Media Platforms

B2B companies can also effectively integrate Foursquare with other social media platforms, such as Facebook and Twitter, to synergize marketing efforts and enhance end-user experience. By linking Foursquare to Facebook and Twitter, check-ins can be shared across platforms. B2B companies can host social gatherings, such as lectures and meet-ups, where savvy social media users will check in at the event venue on Foursquare, send out real-time event updates on Twitter, and share event photos on Facebook, which may even prompt their friends and followers to also become supporters of the company. These marketing efforts will all help with building brand awareness and generating leads.

Targeting Search Engine Results

Bing Maps has integrated Foursquare data for users to view quick venue tips and mayorships. Google and other search engines are sure to be developing their own location-based features too. Foursquare mapping and commenting features really benefit B2C companies, especially retailers with storefronts.  B2B companies can also benefit by adding company locations and listing company events, venues, trainings, seminars, etc. on Foursquare.

Location-based platforms are changing the overall search picture. Search engines will likely integrate real-time location-based data into search results, as they’ve done with universal search elements and real-time social updates. Companies with more check-ins and tips from engaged fans will rank higher in the blended search results. It’s very possible companies will be able to leverage Foursquare to boost their SEO efforts through brand engagement signals, much like what has happened with Facebook and Twitter.

Tracking Sales Team Performance 

Another way B2B companies can use Foursquare is as a sales management tool. B2B companies can use the mobile networking platform to track sales and sales performance metrics and to offer incentives to its sales staff. For example, the sales person who works hardest and collects the most check-ins could earn a reward. What’s more, the sales team could possibly identify potential leads and grab personal data about the leads by tracking their check-in behaviors on Foursquare.

However, this brings up proprietary data issues. Sales people probably don’t want competitors to know where they have been and who they’ve had sales calls with. The solution would be to launch a private version of Foursquare with custom applications. With a custom version, B2B companies can set restrictions and allow only current employees into the account. Check-in updates from the sales team would be shared internally and could even be available to only the management team. And management could send out real-time lead information to the sales force.

The customer service team could benefit in the same way. This would work like emailing or text-messaging, but with location features, which would be easier for two-way communication. To be more advanced, employees can view the updates and tips through a corporate email account with a simple connection. And every company and employee can have several Foursquare accounts for public, private and other use. In the future, a person’s online and mobile accounts will all be connected, but with advanced features to address privacy concerns.

Enhancing Corporate Culture and Community

B2B companies can use Foursquare to build community within the organization. Through checking in the corporate location, both management and employees will achieve stronger internal relations. Whoever checks in the most will become the mayor, and everybody has an equal opportunity to obtain the mayorship, not only the CEO. The mayorship can also be stolen by another employee. In the game-like process to grab mayorship, employees will gain a better bond, build morale and better internal relationships.

Employees might also check in together at a restaurant after work, or at the airport on a business trip. Internally, they win badges of swarm (50+ people are also checked in here) and jetsetter (5 airport check-ins). With a better sense of company unity, they can show clients and fans that they’re part of a great team with a strong corporate culture.

Partnering with Foursquare

Inspired by Twitter, Foursquare has opened its API to developers. There’s a potential for B2B companies, specifically software companies, to adopt a Foursquare component into their products through the API. Foursquarefox, a third-party Firefox plugin, enables you to check in and locate friends from your browser.

How do you see Foursquare as valuable business tool?  Look forward to hearing your thoughts…

Click here to view the embedded video.

So I get Forbes magazine in the mail for FREE…. (for some reason I have no clue why I get it but I am ok with that : )) and this month’s issue was about Forbes Top 100 Celebrity List.   This list talks about not only the income that these celebrities make but also ranks them as the most powerful. 

It got me thinking about the book the Go Giver by Bob Burg and John David Mann.  In this book the author talks about 5 Stratospheric Laws of Success and the Second Law is the Law of Compensation.

The Law of Compensation states that :  Your income is determined by how many people you serve and how well you serve them.

If we look at the what the Law of Compensation tells us and then look at how many people the below Celebrity base serves then in my opinion, these people do deserve the money that they receive in payment for what they provide in service. 

Kobe Bryant

Take Kobe Bryant from the Los Angeles Lakers for example : 

The 2010 NBA Finals featured a rematch of 2008 with a renewal of the classic rivalry between the Lakers and Celtics and proved to be a smash hit in the ratings. With the historic rivalry between the two most successful teams in the league being the marquee matchup once again and the Finals going seven games for the first time since 2005, the series achieved a 10.6 rating and an average of 18.1 million viewers, the highest numbers since 2004. This was a 26% increase from 2009 and a 14% increase from 2008, the last time the Lakers and the Celtics met.  The deciding Game 7 garnered an 18.2 rating and a tally of 28.2 million viewers, making it the most-watched NBA game since Game 6 of the 1998 NBA Finals, which had a 22.3 rating and drew 72 million viewers.  It just goes to show that when people provide massive value they get massive results.

To archive the original story directly from Forbes Magazine, click here:

See attached List on where your favorite Celebrity stacks up!

The Celebrity 100

As a person that is always renovating, flipping and evaluating real estate I thought this article would be helpful for some that may not know what they are getting into when buying a home.

If you’re in the market for an older home, keep your eyes open for a few building materials that have come to be known as historic failures.  Replacing them with materials that meet today’s standards can be an expensive proposition.

These five building practices are among those I recommend educating yourself about before buying an older home here in Denver.

Single-strand aluminum wire

Many thousands of houses were built between 1964 and 1976 using single-strand interior aluminum wire. The wire was developed as an alternative to copper as its costs rose – and its availability fell – during the Vietnam War.

Aluminum doesn’t conduct electricity as well as copper, so a larger gauge must be used to conduct the same amount as copper. Because of specific properties of aluminum, however, the connections between the wire and a light switch or outlet can arc, causing a spark that can burn the connection point and eventually start a fire.

Fires are rare, but the possible hazard is enough to warrant repair or mitigation.

The aluminum wire can be replaced with copper, or special connectors can be installed between the aluminum wire and every outlet or light switch. Detailed information can be found at :

http://www.inspectapedia.com/aluminum/aluminum.htm

Masonite Woodruf roofing

Originally produced as an alternative to natural wood-shake roofs, Masonite Woodruf roofing was installed on many homes throughout the 1980s and 1990s. The shingles have the look of cedar shake but were developed to be much more stable and long-lasting.

Picture Source: InspectAPedia.com http://www.inspectapedia.com/roof/Masonite_Roof.htm

Unfortunately, water penetration can cause shingles or whole sections of the roof to lift, curl or swell. The surface is dangerous to walk on because it can have a loose, powdery coating from the deteriorating Masonite.

These problems have led to a class- action lawsuit, now that has been settled in early 2009. Information about this settlement can be obtained at :

http://www.inspectapedia.com/roof/Masonite_Roof.htm

T-Lock Roofing

A discontinued roofing product called “T-LOCK” currently covers thousands of Colorado and Midwest homes. You can see the pictures here of several roofs with the T-LOCK roofing system – your home may have this roofing system – it has a very distinctive look and pattern to it.

The T-Lock roofing material is no longer manufactured and is not available for repairs. If your home has this system and you have any damage… it can’t be repaired.  Since it can’t be repaired, homeowners can file a claim to get a replacement cost roof through their insurance company (if the roof has any proven hail or wind damage). 

Polybutylene supply pipe

Polybutylene pipe was installed as water supply pipe in as many as 20,000 to 30,000 metro Denver homes between 1978 and 1997. This iron-gray plastic pipe replaced copper and, in older homes, galvanized steel as the main plumbing supply pipe.

Sections of pipe were joined together with special crimped couplers that sprang leaks at an alarming rate.

It was found that chemicals, including chlorine commonly added to the water supply, can erode the plastic, causing the joints to leak.

This pipe cannot be repaired but must be replaced. Estimates for removal and replacement can range from $5,000 to $10,000 or more, depending on the size of the house.

Class-action settlements have occurred. Information about them can be obtained in several ways: Spencer vs. Duncan, http://spencerclass.com/english.htm

Federal Pacific electric panels

These panels, also called “Stab-Lok” panels, were popular with builders in the late 1960s and 1970s and are in thousands of metro Denver homes. They are widely considered to be unsafe. The breakers in them often will not trip, leading to overheating and, in some cases, fires.

In extensive testing by the U.S. Consumer Product Safety Commission, the circuit breakers had a failure rate of approximately 25 percent.

The industry views them as obsolete, possibly dangerous, and recommends replacing them. Replacement cost is usually between $1,000 and $1,600.

Asbestos insulation

Asbestos was considered invaluable to manufacturers because it added strength and insulation properties to building materials. They used it in wall and ceiling insulation, floors and siding, and as an insulated wrapping on ductwork and pipes until 1972. Builders used those products in houses through 1978.

The mineral has since been found to cause serious health issues. When disturbed and floating in the air, asbestos fibers can be breathed in and can eventually cause lung cancer. The only safe way to deal with them is to remove or contain them.

Removal is costly and has to comply with approved Environmental Protection Agency methods. If asbestos is contained, it cannot come loose and float in the air. Ductwork and pipes can be wrapped or even painted with a special coating. Siding can be painted or covered with new siding, and floors can be left alone, sealed or covered over with another floor.

This article is archived from the Denver Post and was written by Alan Gould.  Alan Gould is a home inspector with U.S. Inspect. He can be reached at agould@usinspect.com.

I have been waiting to tell you about this for months and now it is finally available to you just for a limited time only.  My friends at Social Media Altitude understand that when you give you will ultimate receive.  Well back in the fall of 2009 these guys put together their Free Blog Factory offer and I jumped on it.  Jumped on it like crazy and also helped a couple of other local businesses create their online presence and ultimately their “homebase” with a blog from Free Blog Factory.

My Blog – Dave Hageman.com

I decided to help a couple of friends out with their social media presence and assisted Infinity Roofing and Restoration  - build a social media platform and internet presence…. 

GET YOUR FREE WORDPRESS BLOG HERE:
http://bit.ly/freeblogfactory 

Here is what you get in just 3 Simple Steps:

- Free Self-Branded Wordpress Blog Installed On Your Domain Name
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- Free Premium Theme (On Us!)
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Also as a special bonus for being one of the first 100 people to register you will get access to a powerful Social Media Cash Mapping training that will teach you “How to Generate Traffic, Leads, and Ad Revenue With Your Self-Branded Blog”

This training is no longer available to the public and previously sold out for $897 but you will get this course all for Free with your New Blog.

Because your blog is Self Hosted (you own your blog & it’s content)
Your only monthly charge will be $8.95 per month to cover your hosting services…that’s it!

However the guys at Social Media Altitude have already negotiated for you to get your first month of hosting for just 1 PENNY!

Just follow my buddy Gabe in the video and he will walk you through the entire process in 3 Simple Steps and in 72 hours your brand new custom blog will be completed and you can start generating leads and income from your blog.

GET YOUR FREE WORDPRESS BLOG HERE:
http://bit.ly/freeblogfactory 

To your social media Success!

Dave Hageman

OK so I have been very busy with you name it in working a business from the ground up and I honestly haven’t made time to blog lately but I am offically BACK!   I want to take a moment to talk about the difference between being proactive vs reactive and explain what I perceive are the benefits of having a proactive attitude.

•One of my favorite quotes is a quote by Michael Jordan, “Some people want it to happen, some people wish it could happen, others make it happen.”

Of course Michael Jordan wanted the ball at the end of the game, he wanted to be in a position to make things happen and win the game. I love sports related quotes because they can and do relate to everyone and every area of life, are you one those people that says I wish this or that would happen.  Or are you one those people that constantly desires and wants something to happen but never does anything about it. Finally do you make things happen, instead of just wishing and wanting. We all fall into one category or another.

This is where being proactive comes into play, you must begin to think, visualize and put a plan together to MAKE THINGS HAPPEN.  Michael Jordan did not become the greatest basketball player ever over night, as a matter of fact when he started out in youth basketball he was not very good.  He came home and told his dad that he wanted to quit, and his dad said to him well Michael that’s fine quit but what did you learn today and Michael said ”I found out I hate to lose”.

So what do I do from here, how do I begin to take myself from just wishing and wanting to making things happen and can you be a Michael Jordon in your area of life? I submit that we can be the best at what we do and that we can have more success than failure if we would only plan for success. Simply put we must proactively plan to succeed and not just sit back and take whatever happens and then react to the situation.

•“Setting a goal is NOT the main thing, it is deciding how you will go about achieving it and staying with that plan.”  Tom Landry

The funny thing about goals are they become the things we talk about rather than the things we do. So we talk, wish and want but we don’t proactively go about achieving our goals. Often our sales staff will tell us that the main reason for their success is luck and I am always quick to point out that it’s not luck but it’s when preparation meets opportunity. Just as Michael Jordan had to practice and prepare to take that last second shot, we must proactively plan and prepare to succeed at whatever our goal might be.

To me the difference between proactive and reactive, is not being satisfied with what might happen or could happen but turning the odds in my favor and being prepared for success.

Are you prepared for success?

5280 Magazine has an annual guide to the hottest ‘hoods in town (look closely, there are some surprises in there).

 PLUS: The changing definition of “location, location, location,” four things to do when looking for a Realtor, and why now is (perhaps) the best time to buy in a generation.
This article was written By Luc Hatlestad

In normal years, assessing Denver’s hottest neighborhoods is pretty predictable business. Of course, 2010 is, and 2009 was, anything but normal. As the Mile High City—and the nation—begins the slow recovery from the housing crisis, many of the city’s most desirable neighborhoods have seen marked corrections. That’s not a bad thing, per se, as these communities (think East Wash Park, University Park, and Country Club) are still highly sought after, even if the sales data aren’t quite as rosy as they’ve been in the past. The good news, though, is that the benefactors of these micro-market corrections are, mostly, the areas around the city’s classic neighborhoods—and the long-term effect of this phenomenon will be to expand Denver’s overall livability. Whether you’re buying, selling, or staying put this year, these are the places to be in Denver right now.

Belcaro

One of the few neighborhoods in this exclusive part of town where prices actually appreciated in the past year. This lush oasis (think ranch-style homes and quiet streets that don’t conform to the city’s grid) in central Denver draws a higher-end dweller—primarily families and empty-nesters with the taste and income for the finer things. Still, Belcaro offers relative bargains to luxury-market homebuyers, although sellers should be patient: Listed homes spent 183 days on market (DOM) last year, compared to a citywide average of 97.
Average sale price $845,000
+8% over 2009

Washington Park West

This slightly hipper, grittier alternative to Wash Park East (average sale price: $654,000) has all the access to its neighbor’s amenities, but at a far lower cost. This primarily residential neighborhood is surrounded by numerous retail districts, whether new (Pearl Street, north of I-25) or revitalizing (South Broadway). Lately, more young couples and families have been landing in the area to take advantage of its leafy streets, reasonably priced housing that hasn’t been as overwhelmed by scrapes and duplexes as have some of its neighbors, and, of course, the neighborhood’s biggest draw, Wash Park itself, which teems with activity even during the chilly winter months.
Average sale price $395,000
+1% over 2009

Berkeley West/Regis

The Highland boom spreads north and west as Denverites take advantage of the area’s easy access to I-70 and the mountains, along with the ongoing development of the Tennyson Street corridor. The Regis University campus, the funky-cool old-school Lakeside Amusement Park, and lots of green space and architecturally interesting new or remodeled homes make these adjacent ‘hoods most attractive to couples and young families who might be priced out of Highland but still want to be close to the action of Highlands Square and the 32nd Avenue and Zuni intersection.
Average sale price (Berkeley) $283,000, +8% over 2009
Average sale price (Regis) $212,000, +11% over 2009

Park Hill East

The low prices and proximity to City Park, bike trails, and the rest of Park Hill have made this neighborhood of well-kept, single-family Tudors and bungalows an attractive, affordable alternative to other east-side areas such as Hale and Hilltop. PHE is dotted with small shopping districts and a variety of quaint restaurants serving Italian, Thai, soul food, breakfast—you name it. With quick access to shopping in Stapleton, this neighborhood will appeal to anyone looking for an entry- or mid-level home that’s bound to appreciate over the next several years.
Average sale price $204,000
+5% over 2009

Sunnyside East

We’ve been touting this neighborhood for years as an up-and-comer, and it’s finally arriving as a focal point for homebuyers who want to get in on the northwest Denver boom. True, it’s a bit grittier than its more expensive neighbors, but it lures cutting-edge types who are willing to endure the “refinement” process rather than wait until everything has been upgraded (and potentially overpriced). Sunnyside’s unusually affordable homes—lots of modest bungalows—mean inventory is low, so buyers must be prepared to act fast.
Average sale price $181,000
+13% over 2009

Sloan’s Lake West

Between the burgeoning Edgewater commercial district, Sloan’s Lake East, and Highland, the area around Denver’s biggest lake is fast becoming the go-to ‘hood for people who want quiet surroundings with easy access to downtown, northwest Denver’s shopping and nightlife, or quick mountain getaways. The lake itself—which not long ago was a place to avoid after dark—has become a landing spot for joggers, boaters, and water skiers, and the sleepy surrounding streets make the neighborhood attractive to families with children.
Average sale price $341,000
+9% over 2009

Jefferson Park

This cozy enclave still has a rich Latino heritage and provides a lower-cost option—with equal access to northwest Denver’s amenities and striking views of downtown—than the more established Highland neighborhood to the north. The Speer and I-25 borders funnel traffic around the area rather than through it, which makes the streets surprisingly quiet, day and night, and many of the modest homes are ripe for remodeling or flipping. Despite the area’s proximity to Invesco, the chaos is minimal on football Sundays thanks to a well-run traffic-management plan, and JP’s average of 46 DOM shows how quickly its properties are moving.
Average sale price $260,000
+9% over 2009

Congress Park South

Along with its neighbor Congress Park North, this was one of the few areas in central Denver where values appreciated last year. One of downtown Denver’s first “suburbs,” CPS is now one of the oldest and most desirable and vibrant neighborhoods in the city, with many remodeled Victorian-era homes. It has become a vortex around which couples, families young and old, hipsters, and yuppie singletons revolve. The ‘hood is also near the quietly luxurious Cheesman Park and Denver Botanic Gardens, giving the whole area a neighborly, walkable—yet still urban—feel.
Average sale price $445,000
+9% over 2009

Hot…Or Not?

Why some typically reliable neighborhoods had a rough year.

When we started to rate Denver’s best neighborhoods in 2010, we found the usual suspects in some unusual and unfamiliar situations. Homes in Highland East, Central, and West, for example, dropped in value across the board (from 4 to 11 percent), as did houses in Cheesman Park (down 5 percent from 2009), Country Club (-1 percent), University Park (-15 percent), and Wash Park East (-3 percent). And Cherry Creek, Denver’s answer to Beverly Hills, saw its average sale price plummet by 14 percent—with an average DOM of 218, more than twice the citywide rate.

Fear not: This doesn’t mean these tony areas are hitting the skids; they’re merely going through a more pronounced correction, and their numbers appear more alarming because their prices were so high to begin with and thus have farther to fall. (Even with the downturn, the average sale price in Cherry Creek is $834,000, and the glut of unfinished scrapes is skewing prices all over town.)

The precipitous correction in some parts of Denver belies the more rational one happening in the overall market. Lon Welsh of Your Castle Real Estate cites Hilltop—$803,000 average sale price, down 3 percent from 2009; 198 DOM—as an area where overspeculation warped the numbers. “They have more than 20 houses on the market that are 2,500 square feet or more and cost up to $3 million,” he says. “People are buying the smaller homes in the area, but because they’re only selling the Chevys instead of the Cadillacs, the average prices come down more steeply.”

The social networking platform Ning announced a couple weeks ago that it was making some substantial changes to the company. The news, coming just one month after Jason Rosenthal replaced Gina Bianchini as CEO, was sour for both employees and for many users of the service. Ning will cut 70 jobs and will end free subscriptions to the site.

Rosenthal writes in the press release, “We will phase out our free service. Existing free networks will have the opportunity to either convert to paying for premium services, or transition off of Ning.”

The on-going tragedy of the massive oil spill in the Gulf of Mexico, caused by the catastrophic destruction of British Petroleum’s (BP) Deepwater Horizon drilling platform, has raised serious questions concerning legislative protections afforded to companies causing such environmental disasters. How will such legal limitations on liability serve to protect BP from being responsible for full compensation to the victims of this man-made calamity?

Oil Pollution Act of 1990

After the 1989 Alaskan oil spill caused by the Exxon Valdez, Congress passed the Oil Pollution Act of 1990.  The Act increased federal oversight of maritime oil transportation and drilling, increased safety standards for such activities, set liability standards for such spills, and activated a trust fund to help pay for cleanup costs resulting from oil spills.

Responsible parties for causing such oil spills were made liable for removal costs and damages resulting from the incident, including economic losses resulting from damage to natural resources such as fishing and recreation. There is no liability for removal costs or damages if the spill incident is caused by an Act of God, an Act of War, a third party, or any combination of them.

As a trade off for requiring the creation of an industry-funded oil spill trust fund, responsible companies were provided a limitation on their liability for such removal costs or environmental damages. Such liability limits were set at $75 million.

Are such liability limits sufficient to protect the public? Obviously not. According to a study conducted by the Department of Homeland Security last year, since 1991 there have been 51 spill incidents in which the damages exceeded the liability caps. The potential damages resulting from the BP spill are already estimated at $1.6 billion, and this figure could rise further. Even at $1.6 billion, such damages exceed the current cap on BP’s liability by more than 20 times.

If, however, claimants can prove gross negligence by the responsible party (a much higher standard of proof), the limitations on liability would no longer apply. It would be up to courts and juries to make such findings and allow higher damages to be awarded beyond the $75 million total cap.

Oil Spill Liability Trust Fund

In 1986, Congress had created a trust fund, the Oil Spill Liability Trust Fund, to be paid for by the oil industry to provide contingency funds for clean-up and damage costs resulting from oil spills. This trust fund remained unfunded, however, until after the Exxon Valdez incident. In the Oil Pollution Act of 1990, the oil industry was required to put $1 billion into the trust fund, based upon a new tax (currently 8 cents per barrel). This reserve fund currently stands at $1.6 billion.

These costs on the oil industry are, of course, passed on to the consumer. It is estimated that the tax to cover the Oil Spill Trust Fund increases the cost of oil by about one tenth of a percent. Have no doubt about it, readers, but we consumers are the ones who actually paid for the $1.6 billion currently sitting in the fund. Meanwhile, BP’s profits just for the first three months of this year stand at $6.1 billion, after posting profits of $4.3 billion in the final quarter of last year (that’s not a typo).

BP’s Liability

BP’s CEO Tony Hayward announced that “this is not our accident, but it’s our responsibility.” BP has stated that it will pay “all necessary and appropriate clean-up costs,” and will pay compensation for “legitimate and objectively verifiable” claims for property damage, personal injuries and commercial losses.

If BP holds true to its word, the government will be compensated for its clean-up efforts and the Oil Spill Liability Trust Fund will remain intact. There will undoubtedly be clean-up costs and liability claims that BP will dispute, and such disputes (given the example of the Exxon Valdez incident) will take decades to resolve.

If the oil slicks damage the sensitive wetlands of Louisiana, the rich oyster beds of the Gulf Coast and the coral reefs off of the Dry Tortugas and the Florida Keys, no amount of money in the world will compensate us for our ecological and economic losses. Such are the risks that need to be weighed against our overweening thirst for oil and desire to “drill, baby, drill.”

What are your thoughts on this huge accident?  Obviously I ran about multiple things… follow my progress and share with a friend!