Navigating a Construction Defect Claim
Every construction defect claim has many pitfalls in each step of the process. Each misstep can cost a claimant significant money in their recovery. The best way to maximize the value of a claim is to hire experienced construction defect counsel. Frequent concerns include:
Finding Insurance Coverage
Recoveries are generally paid from the insurance carried by the general contractor and subcontractors. Each policy is complex and frequently provides coverage that differs from year to year for each party and is far more challenging to navigate than other types of insurance like automobile coverage. A typical commercial general liability insurance policy contains a page or two of what is covered followed by page after page of endorsements and exclusions that exclude or limit coverages such as progressive damage exclusions, prior work exclusions and other limitations.
Right to Cure
The Right to Cure statute was passed by the South Carolina Legislature in 2005. The Right to Cure Statute does not require that an owner allow the contractor or builder to repair their construction mistakes and defects. Owners are free to use whoever they wish to effectuate the needed repairs should they not want the contractor that originally performed the work to do so. Proceeding with repairs without providing the contractor that originally performed the work with the Right to Cure as required by the statute, however, is a common pitfall that can be very costly.
Builder Bankruptcy
An owner may decide not to pursue claims because the developer or builder has filed for bankruptcy. A filling of bankruptcy generally doesn’t impact the commercial general liability insurance coverage that was purchased by the contractor. There is a process in the bankruptcy court, even if the bankruptcy was filed many years prior, that likely will allow the pursuit of claims for recovery related to the insurance policies. We have recovered millions of dollars for our clients over the years from developers and contractors that have filed bankruptcy.
Builder Out of Business
The fact that a builder is out of business does not prohibit a recovery. Most builders have commercial general liability insurance that will be applicable to the claim even if the builder or subcontractor has been out of business for many years. The challenge of course is finding the insurance coverage. Learning how to locate the insurance coverage of an out of business builder is a skill that has taken many years to develop and refine. The Chakeris Law Firm has recovered millions of dollars for our clients from developers and contractors that are out of business and have been so for years.
Attorney’s Fees
There is no charge for an initial consultation to discuss the issues you are having with your home or condominium and whether our firm is the one for you. We evaluate every claim thoroughly for its viability and likelihood of success in order to provide a straightforward and realistic assessment of the claim. If a claim is brought, our fee is charged on a contingency basis - meaning there are no attorney’s fees owed unless there is a recovery. The legal fee is paid out of the gross recovery we obtain before deducting expenses from the recovery.