May 2009: Update NOTICE OF CLAIM DETERMINATIONS ARE ROLLING IN! By now, most people were aware of the January 12, 2009 Proof of Claim deadline to submit claims to the Receiver. Since May 1, 2009, the Builder Team at Cureton Clark, P.C. has been receiving Notice of Claim Determinations from the Receiver’s Office, which said notice contains personal builder claim numbers and states whether each particular claim is accepted or rejected and provides for the respective amount. The notice also contains an appeals mechanism whereby builders who challenge the Receiver’s findings might do so. Noticeably absent, however, is any information regarding when our builders might expect to receive the money they have waited so long to receive. This is obviously the most important issue for our builders, which is why the Builder Teams has made it their top priority to address with the Receiver. If the Receiver does not provide a timeline for distribution of funds in the very near future, court involvement might be necessary. Contact Gina M. Zippilli at 856-824-1001 or gzippilli@curetonclark.com with questions regarding the HOW process and for more specific information. November 2008: Update The report is finally in! If you were a builder member of HOW Corp, and are eligible, you are entitled to receive a return of your capital contributions. Every Builder however must submit an accurate and complete Proof of Claim form by January 12, 2009 or be forever barred. On June 16, 2008, we received a Report from the Deputy Receiver of How Insurance Company ("HOWIC"), Home Owners Warranty Corporation ("HOW"), and Home Warranty Corporation ("HWC") (collectively "HOW Companies") regarding the plan of liquidation that previously addressed how and to what extent builders’ capital contributions would be reimbursed.  We are told that HOWIC has sufficient assets to refund all vested capital contributions as authorized by the liquidation order dated June 13, 2005.  We have reason to believe that there will be surplus funds from the liquidation of the HOW companies that would permit an additional distribution over and above each builders’ capital contribution. While the amount of the surplus has not been determined at this time, we believe it may be substantial. The Deputy Receiver has determined that among the HOW Companies actual or potential liabilities are approximately $11,271,225 in vested capital contributions or contributions that need to be returned to certain builders. The June 13, 2005 liquidation order essentially set out certain criteria that each builder would need to satisfy to be entitled to a return of their contribution. The order also states reasons why a builder would not be entitled to a return. For instance, if the builder was terminated for cause on or before October 14, 1994 or if the builder voluntarily terminated membership and their capital contributions had not yet vested under the terms of their agreements. We now have been informed that those builders that satisfy the eligibility requirements will in fact receive a return of their capital contributions. THE RECEIVER NEVER SENT ME ANYTHING; IS THERE A PROBLEM? Yes. If you didn’t receive either a notice of proof of claim or notice of ineligibility then the Receiver does not have your current mailing address. The Receiver is using mailing addresses from 1995 so if your company has moved since then it is not in the pool of builders to be contacted. If you do not act immediately, you will lose your rights. I LOST ALL OF MY DOCUMENTS, AM I ENTITLED TO A RETURN? Cureton Clark works directly with the offices of the Deputy Receiver to obtain information such as the amount of each builder’s capital contribution, the number of enrollments, and other information that the builders may no longer possess but information they need to ensure a return. Time is a factor however and the longer each builder waits to get involved in the process, the greater the risk that the builder will forego its entitlement to funds. So, the first step is to contact attorney Gina M. Zippilli and request a "builder package". This package includes the forms necessary to process each claim and authorizations for Cureton Clark to obtain the information vital to your return and to essentially "get the ball rolling". Once received, Cureton Clark can expedite the retrieval of your information and begin processing your claim. WHAT HAPPENS IF I MISS THE JANUARY 12, 2009 DEADLINE? Without exception, if a builder fails to submit a completed proof of claim form the builder foregoes its right to a return of their capital contributions. No exceptions will be made so it is pivotal that the forms are completed accurately as well as timely. Cureton Clark is eager to help builders get their money back. Most if not all of the builders believe that HOW never should have been placed into liquidation. Contact Gina M. Zippilli at 856-824-1001 or gzippilli@curetonclark.com with questions on how you can be next in line! January 2007: Distribution News We at Cureton Clark, P.C. have entered into the second phase of our representation of builder members to protect their distribution rights in the HOW liquidation. After numerous communications with the Commission’s Special Deputy Receiver, Patrick Cantilo, we learned that he does not intend to make distributions until the later part of 2008 as a result of two large lawsuits and an Internal Revenue Service issue. A distribution in late 2008 is not guaranteed and, to that end, monies may not be distributed until 2009 or later. To prevent the membership fund’s complete dissipation, and in an effort to expedite the liquidation, we are in the process of obtaining information not only regarding the lawsuits but also obtaining details pertaining to the actual amount of money currently in the fund, including any reserves that have been put aside to defend litigation. Our knowledge regarding the present suits will enable us to not only determine the validity of the 2008 distribution date but will provide an opportunity to discuss same with the Trustee. This will protect and preserve the funds presently in place thereby increasing the amount of money builders will receive. Without Cureton Clark, P.C.’s involvement and oversight, the Trustee has no legitimate overseer. Each year that passes means less money in builder pockets and more builders that will not receive a distribution. Over the next month, Cureton Clark, P.C. not only expects to have a firm grasp of all litigations pending involving HOW builders but anticipates determining each of our client’s eligibility and percentage of interest entitlement. January 2006: HOW Representation Group meets Builders and Executive Officers at the NAHB Convention The HOW Builders’ Representation Group received enthusiastic support at the annual NAHB convention in Orlando. The builders were informed that a plan of liquidation has been approved by the Virginia Corporation Commission and that there may be a "substantial" surplus available for distribution to HOW Builders after payment of all obligations. Lead counsel Jerald R. Cureton, associate counsel and Builder Liaison Robert Johnston represented our group. Meetings took place with HOW builders, association executive officers and former HOW executives who reviewed the status via power point and direct discussions. As a result, group representation grew significantly. In addition to the possibility of receiving some return on their investment, a principal focus of the builders was that HOW might not have been insolvent and hence, there may have not been any reason to put HOW in receivership eleven years ago. This conclusion is buttressed by the fact that most if not all of HOW’s liabilities have been fully paid there is a "significant" surplus remaining. Currently the Group is in contact with the Special Deputy Receiver and the Virginia Insurance Commissioner. We are receiving cooperation from them as we actively monitor the Receivership proceeding. Important developments will be highlighted on this site. We suggest that HOW builders review it periodically. If you have any questions, please contact Gina Zippilli or Jerry Cureton.