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Joy at the middle of the road: compromises on CD cases can save time, money, and reputations
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ABOUT THE CASE, CLAIM, OR ISSUE

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A Southwest homeowner’s association had grown tired of the cracks in their asphalt roadways and concrete sidewalks. They expressed concern not only about aesthetics but about vehicle damage and pedestrian safety. The HOA’s main complaints were diminishment of expected longevity, necessitating premature capital expenditures. Subsequently, they filed suit against their developer for nearly $4MM in infrastructure repairs. The law firm retained by the developer’s insurance carrier quickly called on Guardian Group for an evaluation of the alleged construction defects.

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ABOUT THE INVESTIGATION

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Guardian’s construction and engineering defects expert immediately deployed to the scene, performing a thorough visual inspection throughout the subdivision and visually documenting all of the cracks along the way. In addition to the aforementioned road and sidewalk issues, the subdivision of single-family homes included a man-made lake. Community members alleged erosion to the seawall was contributing to the widespread cracking. Back at the office, Guardian’s Construction Defect Group created a “crack map” so all parties could better visualize the damages. According to Guardian’s expert, once measurements were applied the cracks, the allegations simply were not as bad as claimed, and any excessive damage was limited to the main thoroughfares which saw increased truck traffic during construction. A combination of asphalt overlayment and sealing of these cracks would restore the lifespan of the roadways and sidewalks.

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ABOUT THE RESOLUTION

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In many scenarios such as this, a “take your lumps” approach is advocated by defendant’s legal team. When one can admit to and take ownership of certain wrong-doings that party can gain credibility when it comes to establishing what they did right or why there are limitations to their culpability. In this case, while there may have been performance issues relating to the sea wall at the man-made lake, Guardian’s expert argued that this did not overly contribute to the cracking nor did it absolve the HOA from its road and pathway maintenance responsibilities.

The asphalt was, after all, already 15 years into its expected 20-year lifespan. Guardian’s team prepared a cost-to-repair estimate for counsel that included both a low and a high range for settlement purposes. While a costly court trial was avoided, the case did make its way through mediation wherein it settled near the lower range, an amount less than one quarter of the damages originally sought.

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ABOUT GUARDIAN GROUP, INC.

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Guardian’s team of forensic experts, drawing upon over 30 years’ complex construction and engineering claims experience, provides carriers and their counsel a full suite of litigation support services. Timely. Professional. Pragmatic. Plainspoken. When your case, claim, or issue requires construction defect expertise, turn to the time-tested talents of the engineers and other forensic specialists at Guardian Group, Inc. Call on seasoned, polished, strategic support. Kindly on Guardian Group today.

 

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