Why Construction Defect Litigation Lacks Foundation

by Sammy Elmi, Esq. on July 22, 2010

I have spent over 10 years litigating a broad range of civil matters in Superior Courts throughout California, including real estate, business, personal injury, and construction litigation. While any client embroiled in any type of litigation is rarely “happy”, I have found construction litigation can be the most frustrating for clients to endure– particularly to smaller trade subcontractors like the roofing, drywall, or concrete subcontractor.

Catchy title excluded, California construction defect litigation (involving both commercial and residential properties) can be troubling, if not devastating, for most subcontractor trades. Today’s subcontractor has to deal with skyrocketing insurance premiums (if coverage is even afforded), claims that are still being filed for pre-SB800 matters, and just the overall hassle of dealing with (frequently meritless) defect allegations, all the while trying to operate a successful construction business.

If a construction defect matter rises to the level of a formal lawsuit, typically the Complaint filed in Superior Court is generalized enough so that the subcontractor has no choice but to Answer the Complaint (or cross-complaint), notify their insurance carrier of the claim, find a lawyer, and find themselves enthralled in litigation. Remarkably, often times the cost of litigation exceeds the cost of repairing the claims within the subcontractor’s scope of work.

Having represented clients all along the construction industry food chain, from large residential developers and general contractors, to smaller concrete and drywall subcontractors, I can appreciate the dilemma construction litigation poses to subcontractors. As a solo practioner, free from the high costs, overhead, and fees associated with large construction litigation firms, I pride myself on being able to use my experience and knowledge in the construction industry to help subcontractors extricate themselves from litigation as early as possible. I work to ensure that my client’s insurance coverage is working for them (not vice versa) and more importantly, guide them to institute practices, policies, and procedures that keep them out of litigation to begin with.

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