I perform an inspection about 8 months ago and was notified by the buyer’s agent that recently an HVAC technician told the buyer that the horizontal mounted furnace in the attic was recalled back in 2002. Carrier is supplying a free replacement unit and since I did not document it in the report, they want me to pay for the labor cost, about $2,000. InterNACHI “Standards of Practice” state in Exclusions, “Inspectors are not required to determine any manufacturer’s recalls or conformance with manufacturer installation”. The buyer insist he will take it to arbitration. What are my chances to prevent liability? 
What does your PIA say about recalls?
“Dear Low-Life Home Buyer” -
“Nice try. I gotta admire your balls trying to pull off something like this. For general information have you ever been charged with insurance fraud before, OR will this be your 1st time?”
“Lets get something straight. I’m a home inspector - NOT a recall service”. I tell you if its broken OR in need of MAJOR repair. However, I’m NOT an HVAC service company that gets RECALL bulletins on a regular basis FROM distributors, dealers, manufacturers, etc".
“Therefore I strongly suggest you turn around and stick it where the sun don’t shine.” Also please read our INSPECTION AGREEMENT which you read and signed before we did the INSPECTION. It tells you we perform our inspections per the XXXXXXXXXXXXXXX Stds of Practice, and as you know from reviewing them - WE DON’T DO RECALLS".
“If after reading this YOU do NOT agree with our explanation, I CORDIALLY urge you to start the ARBITRATION PROCESS. Also please read the part in our AGREEMENT that says YOU will pay for our ATTORNEY or OTHER fees in ANY action like this if we are FOUND without fault”.
Nice Hearing From You, Lets Do Lunch at the Soprano’s Place.
Love and XXXXXXXX
IMHO:
If its less than $2000, its probably small claims court. No lawyer is needed, and you would do a short presentation/counter presentation before a judge. I would immediately counter sue for $2000 in lost time, breach of contract, and defamation of character. That should make it disappear.
My PIA does not address this issue, but is does now.
Dan, I totally agree with your statements, not in so many words. but I tried to explain to him that sometimes its just “not anyone’s fault”, but I don’t think his corrupt mind could process that information. I will definitely get my ducks in a row before our date.
Michael, That sounds like a good idea.