OT: Lawyer Advice

[Dutch]

One of my co-workers is having a dispute with either his builder or his insurance company (I'm not sure which really) over a faulty home foundation. I am no expert on this (that's for sure) but I know a lot of you are lawyers, or soon to be lawyers, or maybe are or know home builders and may have some advice for him.

Here is his story.

I live in Louisiana, where builders are required by a law to purchase a 10-yr foundation warranty for all new homes. I bought a house in Jun 03. In Sep 03 I filed a claim with the insurance that the builder purchased. They sent an engineer out. After reviewing the report, they denied my claim for foundation problems. The house was nearly 9 yrs old. A year later the foundation grew worse. I filed another claim in November 04, at this point the house was 9 yrs 10 mos old. I hired my own engineer to do a report. Sent that report in with my claim which I had an attorney file on his letterhead to throw some more muscle at them. Claim was denied again. The house is now 10 yrs 2 months old, no more warranty. The builder has had at least 4 homes on my street alone require foundation work. My immediate next-door neighbor's home was in worse shape than mine, and his wife was ruthless with the insurance co. and the builder. The insurance co. coughed up ~ $7K I think, and the builder did the work at cost. They're unhappy with the work and keep the builder scared by threatening to go the press as they urge for more free repairs. I can fix the thing myself for about $8K, or go into arbitration with the insurance co. (though my attorney advises me that the chances are not good), or I can fight the builder I suppose. The damage is: prevalent dry wall cracking inside the house, crown molding separating, cabinets pulling apart from the wall, windows beginning to stick, significant stairstep crack in the brick veneer, and hairline cracks in the slab. It's not catastrophic. But there is a definite problem that requires foundation stabilization. The insurance co.'s policy is, unsurprisingly, very narrow in its definition of foundation damage. Not sure what to do.

In a nutshell, if you were him, what would his options be. Any thoughts on this would be appreciated.

[st.cronin]

I would put the builder in the new foundation.

[Dutch]

I'll pass that advice on for sure.

[EagleFan]

Originally Posted by st.cronin

I would put the builder in the new foundation.

Paging Mr. Hoffa

[yabanci]

He really needs to talk to an attorney who specializes in this area of law in his particular state (maybe he already has one, in which case he should get advice from his lawyer and not through freinds). Construction defect is a very specialized field and nobody can give him competent legal advice on his options based on the incomplete and confusing facts presented here. The only advice he can get by "asking around" is bad advice. Good luck.

[Franklinnoble]

Here's the problem:

A good attorney is gonna cost $200 an hour, or more. Just to retain a lawyer for this case will cost about 2 grand. If it goes to court (or arbitration), each hearing is gonna be another thousand bucks on top of that. Your odds of winning are slim. Your odds of winning AND being awarded your attorney fees are even slimmer.

Unless you find a lawyer willing to take the case on contingency (highly unlikely), it's simply not worth it if you can just fix the damned problem yourself for $8k.

The stink of it is, the builder knows this. The insurance company knows this. And they have corporate lawyers on salary (cheaper - if you get sued a lot), not to mention insurance to protect them from costly lawsuits. So, they don't mind fighting you in court, and will spare no expense.

You're fucked. Fix it yourself, and cut your losses.

[yabanci]

Originally Posted by Franklinnoble

Here's the problem:

A good attorney is gonna cost $200 an hour, or more. Just to retain a lawyer for this case will cost about 2 grand. If it goes to court (or arbitration), each hearing is gonna be another thousand bucks on top of that. Your odds of winning are slim. Your odds of winning AND being awarded your attorney fees are even slimmer.

Unless you find a lawyer willing to take the case on contingency (highly unlikely), it's simply not worth it if you can just fix the damned problem yourself for $8k.

The stink of it is, the builder knows this. The insurance company knows this. And they have corporate lawyers on salary (cheaper - if you get sued a lot), not to mention insurance to protect them from costly lawsuits. So, they don't mind fighting you in court, and will spare no expense.

You're fucked. Fix it yourself, and cut your losses.

This is the kind of "advice" you get from some random layperson who hasn't seen the insurance contract and who doesn't know the facts or law. All wrong.

[albionmoonlight]

Originally Posted by Franklinnoble

Here's the problem:

A good attorney is gonna cost $200 an hour, or more. Just to retain a lawyer for this case will cost about 2 grand. If it goes to court (or arbitration), each hearing is gonna be another thousand bucks on top of that. Your odds of winning are slim. Your odds of winning AND being awarded your attorney fees are even slimmer.

Unless you find a lawyer willing to take the case on contingency (highly unlikely), it's simply not worth it if you can just fix the damned problem yourself for $8k.

The stink of it is, the builder knows this. The insurance company knows this. And they have corporate lawyers on salary (cheaper - if you get sued a lot), not to mention insurance to protect them from costly lawsuits. So, they don't mind fighting you in court, and will spare no expense.

You're fucked. Fix it yourself, and cut your losses.

Which is why things like punitive damages and Unfair and Deceptive Trade Practices laws exist. They hit companies with extra damages (generally 3X) to stop the very sort of calculus that you described above (it will cost people more to sue us than they will win from us, so let's just screw them over on purpose). Louisiana is a state with noble populist history (chicken in every pot and all that). Its consumer protection laws are really good if the facts are right.

If your friend would like a second opinion, I practiced in New Orleans for a year and know of a really good firm in the New Orleans area (it's a small firm (about 13 lawyers), but they cherry pick the best and brightest to work for themselves. I think that it's probably the best firm in the city.) If you PM me, I can give you their name.

Your friend may or may not have a case, but these issues relate to very specalized areas of law (consumer protection, insurance, arbitration, construction, possible class action). With all due respect to his lawyer, I recommend getting a second opinion, considering that this is a $10,000 problem.

[Flasch186]

Originally Posted by Franklinnoble

Here's the problem:

A good attorney is gonna cost $200 an hour, or more. Just to retain a lawyer for this case will cost about 2 grand. If it goes to court (or arbitration), each hearing is gonna be another thousand bucks on top of that. Your odds of winning are slim. Your odds of winning AND being awarded your attorney fees are even slimmer.

Unless you find a lawyer willing to take the case on contingency (highly unlikely), it's simply not worth it if you can just fix the damned problem yourself for $8k.

The stink of it is, the builder knows this. The insurance company knows this. And they have corporate lawyers on salary (cheaper - if you get sued a lot), not to mention insurance to protect them from costly lawsuits. So, they don't mind fighting you in court, and will spare no expense.

You're fucked. Fix it yourself, and cut your losses.

Not true in its entirety....your best bet is the press. Make it nasty, get on TV and in the paper's a lot. Use this to your advantage....put a little example of what you are willing to do out there than go back to them for the fix. When they dont, get bigger and bigger and bigger. Save everything, copy everything, where a placard in front of their offices on a public street. Put your phone number out there for people to call to hear your story, make a website, visit HADD and let them hear your story, go to the better business bureau, talk to the insurance and real estate regulatory board(s), comptroller, etc. The biggest fear a builder and an insurance company have is press and reputation.....make a huge sign (garage door size) and put it up on there. You can win this, I promise.

[Ksyrup]

A relatively inexpensive way to go at this, assuming the insurance company has no legitimate reason for denial, is to go to the state's insurance department and file a complaint. Now, Louisiana does not exactly have the greatest insurance department, what with the last 2 insurance commissioners having been indicted and all...but - if you go to the consumer protection division (and even better, throw a few hundred dollars at an attorney who knows people within the insurance department and will write a letter and make a few calls), they might put enough pressure on the insurance company that they will find it in their best interest to pay up.

Especially if it's the same insurance company, and there are several people in the same situation in the same neighborhood. If it's not an isolated case, that makes it even better (but I can't tell whether that's the case or not). Everyone should file a complaint.

On the construction side of things, I don't know as much, and I definitely do not know anything about Louisiana, but there is likely a construction licensing board that you can complain to. And I would give you the same general advice as above - find an attorney (usually a former attorney for the state construction board) who knows people and can move this complaint along. And again, the more complainants, the better.

[judicial clerk]

Your friend can also look for relief through the state construction contractors board.

[Franklinnoble]

Whatever. I've been involved in three lawsuits in the last year and a half. Lawyers cost shitloads of money. Judges are corrupt. The system fails on a regular basis. But, hey, if your buddy wants to be Erin Brockovich, be my guest. I suppose it could happen, but the odds are against it. I'm just giving you my opinion based on some very real experience.

[Dutch]

Thanks for all the advice and opinions. I'll pass on this info to my co-worker and see if he can get any ideas from this.

I knew if nothing else, I knew I would get brutally honest opinions. Agree or disagree, you all rock!