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LITIGATION
PROCESSES AND PROTOCOLS
(a
cooperative effort of the BIA Trade Builder Alliance Council, BIA
Members and CalPasc)
Purpose of the LPP:
Construction
Defect Litigation (CDL) continues to be one of the most
expensive and troublesome risks faced by the New Home Building
Industry. Most of the claims received by Builders and their
Trade Contractors are initiated by predatory plaintiffs’
attorneys who simply search for large new home projects that are
nearing the end of their 10 year statutory limitations. They
then launch aggressive marketing campaigns to the home owners in
those projects using both fear (of unnamed or exaggerated
construction defects that would degrade the value of the homes
if untended) and greed (“we will secure a large settlement in
your behalf with no financial outlay on your part”). In short,
they are not “fighting on behalf of abused home owners”, but
rather are “solutions looking for financially attractive
problems” for themselves. We used to call them “ambulance
chasers”, but at least these attorneys were actually dealing
with a visible injury……
The building
industry continues to work to pass new legislation that will
help protect the industry from these schemes, such as SB800, but
the legal process for doing so successfully is very, very
complex, and any missteps can be financially fatal. To
successfully defend against these claims, and even better to
develop a reputation for being “hard shell cases” that do not
lead to beneficial settlements for the plaintiffs’ attorneys, it
is critical that the builders and their attorneys and insurance
companies work in flawless concert with the trade contractors
and their attorneys and insurance companies.
This is the
sole purpose and goal for the development of these Litigation
Processes and Protocols. Some of the key sub points of this goal
include:
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Providing a library of laws, terms, and processes that
can be used by all of the above named parties that must
band together if claims are to be successfully defended. |
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Encouraging a climate of cooperation between these
entities, focusing their efforts on the real enemy
(Plaintiffs’ attorneys!), rather than each other. |
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Collecting and documenting successful strategies and
tactics that can be consistently used against these
attacks, such as the “Protecting Your Home’s Equity”
pamphlet that can clearly communicate the down-side for
home owners that only hear about “free lunches” from the
Plaintiffs’ attorneys, not recognizing that the “free
lunch” is not for them, but rather the attorneys
themselves, partially at the home owners’ expense. |
They are being
developed by the North State Building Industry Association (NSBIA)
Trade Builder Alliance Council (TBAC) based in Roseville California,
with the support of many trade contractors and builders in this
region. We thank them for their visionary and energetic efforts.
Disclaimer:
The LPP is not
intended to replace your legal council, but rather to assist you and
them in organizing and coordinating your efforts with those of the
other defense parties to the claims. Because they have been
assembled for the most part by non-legal volunteers, it is important
for the users of this information to verify the accuracy and
appropriateness for use in their own applications. The NSBIA/TBAC
would appreciate feedback, suggestions and additional strategies and
tactics that others in our industry may have.
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