Court: No Limiting HI Liability in Kentucky

[Kevin Luce]

Originally Posted by Scott Patterson

The best way to keep out of the courtroom is to do the best job that you are capable of performing, and if you do not know then say so.

That sounds like "as long as you work hard, you will always have a job here". For the amount of people out of work, I have a feeling there is a % of people that would laugh at that statement.

You can be the best home inspector out there and still get sued for a problem that was not visible (for what ever reason) at the time of the home inspection. I personally have prevented or gotten out of a few lawsuits because of the pictures I took at the time of the inspection. Luckily, I took enough pictures and by chance took a picture of that area.

Realtors don't care for us, sellers don't care for us, lawyers love us and we don't get paid enough. Anyone still doing this has to love this profession.

[Nick Gromicko]

Correct. Both FREA and Joe Ferry have confirmed that most lawsuits against home inspectors are without merit.

[Joe Farsetta]

While they may be without merit, the inspector still loses in a court of law.

This is because of the nature of the beast, including court costs and attorney fees.

Unless you have an arbitration clause...

And that arbitration clause does not lock you into using an arbitration company that charges thousands...

But, for anyone to believe that an inspector cannot be sued, or will automatically win, is sadly incorrect. Further, liability passes to the inspector, as opposed to the inspection company.

Dont forget this important fact.

[Bruce A. King]

How does an arbitration clause hold up any better than other agreement clauses?

[Gary Farnsworth]

Bruce, attorneys are out for one thing only; money. An arbitration clause causes them to be left out of the beginnings of the litigation and negotiation process and makes the person complaining against you to go thorough this procedure before "their" attorney gets involved. Ford Motor company makes you go through this process before any lawsuit is begun. Ford abides by what the arbitrators rule on. I know from first hand experience with my 2007 Ford Sport Trac that had consistant bad brakes.

Talk to your local BBB, or check out their web site under business. They have a good arbitration procedure, and I have used it. Attend Joe Ferry's class if it comes to your area. Dated pictures of ALL areas of the home, good, bad, inaccessible, may be your best defense.

[James H. Bushart]

Originally Posted by bking

How does an arbitration clause hold up any better than other agreement clauses?

The court supports the arbitration clause as a means of reducing its own workload.

Very recently, a home inspector with an arbitration clause had his client's lawyer ignore the clause and file a suit with the court. Upon seeing the arbitration clause, the judge threw it out and ordered both sides to arbitrate.

These clauses are found in many contracts being executed by credit card companies, contractors, builders, etc....

They are NOT experimental, but have decades of proven value.

[Joe Farsetta]

Also, the difference with IAS is that the action needs to be brought by the complaining party. This means that they are compelled to pay for the action. Additionally, the cost of arbitration is fixed, as opposed to most other arbitration companies.

Finally, and this is where we differ from virtually all others, is that our neutrals are inspectors, contract specialists, attorneys familiar with construction and contracts, or construction specialists.