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Recently
an "ad hoc" committee of homeowners came to our firm with
a familiar problem. Their association board had authorized
settlement of
a construction defect suit against their developer, only to learn
a few months later that a serious land subsidence problem
was
overlooked. Unfortunately, there was little we could do - the
association had signed away the right to sue for land subsidence
claims in its settlement. Had the association's attorneys
done
a more thorough investigation, they would have discovered the
subsidence problem and sought compensation for it in the
settlement.
Had the homeowner's association board of directors done a proper
evaluation of the law firm it retained, the association's
members
would not have come to us to discuss suing the law firm for overlooking
the subsidence problem as well as suing its own board of
directors
for picking an inexperienced firm to handle the case.
Because of the explosive
growth in construction defect litigation during the past decade,
the need to select a good trial attorney is critical. Our analysis
of the cases brought to us by unhappy associations show that
the following areas should be investigated before retaining any
law firm to handle construction defect or related cases:
Form a
research committee to recommend the best firms for consideration. Talk
to other homeowner associations and property management companies
seeking names of law firms that specialize in trying lawsuits
for homeowner associations. Another excellent source is your
corporate or personal attorney - he or she can refer you to
several construction defect specialists. Architects and engineers
are also good sources.
Insist on a personal
meeting. Invite the top names on your list to a brief "get
acquainted" meeting in a home that represents your problem.
Attorneys or firms that are too busy to attend such a meeting
don't have the time to handle your case properly. Narrow your
list to two or three firms and follow up with a committee meeting
in the office of the finalist firms.
Experience. This
is the most important area when evaluating a law firm. Look beyond
the number of suits a firm may have handled in the past. Volume
does not always reflect competence in the practice of law. You
want to be sure that the law firm you pick can find and pursue
all viable theories of recovery; our firm added $15 million in
damages to a verdict because we found and proved fraudulent conduct
(the developer did not disclose a known defect). When evaluating
a firm's experience, consider its track record in this specialized
area. Get a list of successful cases. Find out which were settlements
and which went to trial. Ask for a list of references for each
case.
The structure
of the firm. Evaluate your potential law firm as a total
team. Construction defect cases are very complex, usually involving
roofs, drainage, corrosive or improperly pre- pared soil, structural
defects, engineer- ing and other architectural issues, as well
as many defendants and cross- defendants. Make sure the firm
has the staff and internal systems to pursue your case. Don't
overlook the firm's financial resources. Discovery is time
consuming- be certain that the firm can match the developer's
and insurance company's resources, and has the staying power
to fight your case through the appeals process. Determine if
the firm will handle your case on a contingency basis to free
association funds for expert investigation. Find out how many
experienced attorneys are available to work on your case,
and the size of the firm's support staff (paralegals, associates,
investigators, etc.).
Evaluate
the experts. Because
of the complex physical nature of these lawsuits, the experts
and consultants the law firm uses are an important part of your
litigation team. Insist on knowing who firms use, and find out
how experienced they are in legal investigations. In one recent
case, our experts were working on an unrelated matter when they
discovered a structural defect issue involving the same contractor
that eventually contributed several million dollars to a $22.4
million verdict. Good experts help make sure that all defects
get discovered before the trial or settlement.
Selecting the right
attorney may be the most important step you take in resolving
your construction defect problem. Finding the best firm will
not only produce a better settlement, it may avoid lawsuits in
the future. |