Subdivision claim gets down-sized

When Guardian Group, Inc.’s Construction Defect Group was called to the Southwest site of a recently completed subdivision, our experts expected to find, based upon a $5MM lawsuit, a project riddled with construction defects. Our carrier client and its counsel sought Guardian Groups’ assistance to defend both the general contractor and the developer against the Homeowner Association (HOA), both covered under a wrap policy. Upon investigation, two pivotal  truths quickly came to light.  

The first problem with the subdivision claim was the protocol utilized in the failure testing. Obviously, an improper test cannot substantiate defects or repair costs. 

The second major problem with the HOA’s claim, a claim that comprised nearly all site common areas, was that a majority portion of the claimed defects were actually built according to plan. 

Despite the aforementioned, meritorious issues of construction defect were, in fact, observed and documented throughout the subdivision. It was on this basis that Guardian Group’s experts prepared a cost to repair estimate to provide the carrier a settlement range. The case was settled during mediation at a dollar figure that fell squarely within the range presented, a number less than a quarter of what the HOA initially sought. 

When construction defect claims, cases and issues cross your desk, talk to the experts with nearly 30 years’ complex construction & engineering claim experience. Talk to Guardian Group, Inc. today.

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