Joe Ferry’s Home Inspector Training Blog

Home Inspection Claims and the Legal System

If you read home inspection industry message boards with any level of fidelity, you cannot fail to notice a general lack of confidence in our legal system among home inspectors. They never expect to get a fair shake in court. And especially in Small Claims Court.

To someone who has spent most of his adult life upholding the legal system, I find this overarching despondency troubling. And quite unwarranted in my experience. Nevertheless, I completely understand why home inspectors feel that way.

In the overwhelming majority of cases against home inspectors that I have handled, claimants and their lawyers are not only constantly vastly overestimating the level of their damages, they do not even recognize that they do not have a case in the first place. While I am not surprised that home inspection claimants might make those mistakes, I am continuingly astonished that their attorneys do.
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Job Security

If you want job security, it would be hard to beat being an exterminator in New York City. Got roaches? Call the exterminator. Your problem is solved but now your next door neighbor has it. And the cycle continues.

Lately, I have come to the realization that I have pretty solid job security myself. Here’s a small sampling of the vermin that I have recently had to exterminate with extreme prejudice.

A couple of weeks ago, one of my ClaimIntercept™ subscribers consulted me about a claim that one of his clients was bringing after having discovered a bat infestation in his attic, some ten months after the inspection. And of course, the client is shocked, shocked that the home inspector did not manage to notice this when he inspected the attic.
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Is Your E & O Insurance Company Stuck on Stupid?

One of my home inspector clients in California recently wrote to me about a home inspection claim that was being brought by a client for whom he had performed an inspection about three months earlier. The client was experiencing some leaks due to recent heavy rains. The leaks were discovered only after removing baseboard and flooring to do some remodeling. After opening the walls they found that the leaks were due to the fact that the vapor barrier had been torn in several areas.

A review of the inspection report demonstrated that the inspector had noted that “stains were observed at baseboard, dry at time of inspection, unable to determine cause, advise review with seller.” Photos of the area taken at the time of the inspection completely support the inspector’s position.

The clients were quite upset and were unwilling to grasp the fact that, since the defect was not visible during the inspection, the inspector was not liable. They subsequently threatened to file suit if the inspector did not refund the fee.

Since he was clearly not responsible for the clients’ problem, he refused to refund the fee and the client followed through on the threat and filed a claim in small claims court.
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The Theory of Relativity Explained

Every year, Lady Agag and I mark Memorial Day Weekend by taking a day trip to the Jersey Shore. More specifically, Spring Lake, New Jersey, our favorite shore town and one of the toniest in America.

Spring Lake for its part marks the start of the summer season with a Five Mile Race. This year’s race was the 35th Annual and over 8,000 individuals participated. For the last 30 years the event has been staged by my old friend and high school classmate Chris Tatreau who has planned and directed marathon-length and lesser distance races all over the United States.

While major road-race planning is how he keeps his body and soul together, he has long been a savvy real estate investor and when I bought my first house as a 31 year-old bachelor, I sought his counsel on the purchase. And 33 years later, I still remember this advice.

After going through the house, a row home in an area of the city that was home to a lively mix of blue collar workers, cops, firemen, corporate executives, professionals, judges and the future Pennsylvania Governor Ed Rendell, he asked me what the asking price was. I told him “twenty-nine, five” and asked him if he thought I should offer “twenty-eight.”
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Answering The Mail

Recently, I’ve been re-publishing some posts from the archive on LinkedIn and facebook on the theory that many inspectors may never have seen the original posts. It turns out that it was a good idea, at least to judge from the tremendous uptick in the number of unique visitors that the site is attracting since then and the number of retweets and comments those archival posts have engendered.

Doug Zumach, commenting on Monday’s The Kamikaze Claimant post, asked “Joe: Won’t the inspector’s E & O premium rise for defending this case? Might it not be more cost efficient to have someone like you defend this?”

That’s a very good question that implicates one of the two major issues that home inspectors tell me concern them the most: the epic tone deafness of the insurance industry when it comes to responding to the overwhelming percentage of unmeritorious claims that plague the home inspection profession.

When an inspector receives an inquiry from a former client regarding a putative issue with an inspection, he never knows whether it will escalate into a fully-formed claim. That is how the Kamikaze Claim started out. When the inspector went back to investigate the claim, he learned that the roofing contractor had filled the client’s head with a lot of nonsense about what was causing the leaks, their provenance and the ineptitude of the inspector in failing to discover and report them.
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When Claimants Simply Make Allegations Up

Dear Joe – I am a Home Inspector of 5, very busy and successful years, here in [New England], despite the down housing economy.

I have just learned of you and have visited your website. I am very interested in learning more of your ClaimIntercept[™] Program.  Also I would like to know if your seminar titled “ Law & Disorder Seminar” is available as a DVD that I could purchase. I reside quite far away from the areas where you do any public speaking on a regular basis. I am a member of InterNACHI, and watch on their website for any further info about your Seminars maybe coming to [this] area.

Can you send me to any further information about ClaimIntercept?

My other reason for writing is that I am, for the first time, going to have a lawsuit filed against me for a “claimed omission” on a job, which is a false claim by a seller.  I do not feel I am responsible for the situation and that I did nothing wrong; it is the seller’s word against my word, basically. And that the seller is using this situation for his own gain, at my expense – to the tune of $15,000.
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Destiny and Second Acts

Years ago, when I was a member of a boutique litigation firm in Philadelphia, my partners and I would often ponder the question “How did we get this case?” What led this client to choose this law firm for this legal matter? Not infrequently that inquiry would lead to a surprising answer. The true origin would often turn out to be several degrees removed. The prospect had been referred by an existing client who had, in turn, been referred by another client and so on. It was truly remarkable how frequently a huge and lucrative legal engagement could be traced back to a minor favor performed for a person in need.

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Wait, Wait, Don’t Tell Me

There’s a memorable scene in the Coen Brothers film Blood Simple where a character named Marty played by Dan Hedeya is trying to hire a private investigator played by Emmett Walsh to kill both his unfaithful wife and her lover. But Marty keeps beating around the bush about the nature of the engagement. Finally, Emmett Walsh drawls “Can you tell me what you want me to do or is it a secret?”

I am constantly being reminded of that scene whenever I read demand letters from attorneys that fail to make even a pretense of articulating any sort of legal theory of liability upon which a claim against the home inspector could possibly be based. You would be surprised how often that happens. In my experience, about fifteen percent of the time.

Recently, a home inspector in New England contacted me after having received a number of letters from an attorney over an inspection that he had conducted on a colonial era home. While the letters all seek damages in the low five figures, not a single one of them lets on what the inspector missed or what needs to be repaired. Just a demand for money.
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Seller Isn’t Trying to Point Out Material Issues

My most recent post prompted a question on the LinkedIn ASHI Group Discussion Board from a Massachusetts Home Inspector who wanted to know whether a home inspector could rely on the information provided in the seller’s disclosures or on responses provided by either the seller or the seller’s representative to specific questions about the property.

I guess the easy answer is that, if seller’s disclosures were reliable, there would be no need for home inspections. And a seller’s disclosures could be unreliable for reasons that are completely unrelated to any skullduggery on his part, to his desire to hoodwink or inveigle a buyer. As an example, I have lived in my house for 24 years. If someone asked me what’s wrong with my house, I would have to say “I couldn’t tell you.”

Since I have no intention of selling the house, at least not before the Singularity occurs, issues that might be of considerable concern to a potential buyer never enter my head. And I imagine that most homeowners are as oblivious as I am of these matters and, thus, represent a huge market for pre-listing inspections.
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A Nation Of Gavones!

Once upon a time I had a paralegal who had been born in Italy but had come to America when she was a nine- or ten-year-old child. She had an Italian last name but was a totally assimilated American who spoke English fluently and unaccented. The only time she spoke Italian was when she spoke to her mother.

Since I had grown up in a neighborhood that comprised first-generation Irish, Germans and Italians, I gained an early appreciation of other cultures and took a particular shine to the Italian culture, its cuisine and language.
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