The proliferation and ever evolving nature of construction defect litigation signals - to those of us who are daily involved - a failure of efforts at attempted reform, early lauded as some a saving grace to both the Insurance and Construction Industries. The very nature of these two behemoth industries seemingly equates well intended reforms efforts with attempts to “turn the Titanic”. Afterall – the very careers of those involved daily with “construction defect litigation” suggest that such reforms have failed. Indeed, such many reforms are directed at perceived insufficiencies in the legal process, itself.
The Associated Defense Counsel of Northern California and Nevada recently sponsored a Seminar that included panelists’ discussion on the topic “Perspectives from the Construction Industry Post SB 800″. The discussion proved enlightening and helped to dispel some of the cynicism stemming from seemingly inconsequential efforts at reform.
Panelist, Barry Grant, Territory President for KB Homes reported that SB 800 is working!. Builders who pressed for and secured the “Right to Repair” find greater incentive to timely address homeowner warranty concerns. SB 800 helps to define legitimate claims and otherwise provides an avenue to resolution for those “claims” that sometimes defy more informal resolution.
Panelists Holly Parrish Bezner, General Counsel, and Bruce Wick, Director of Risk Management – both for CalPASC reported that industry reviews are favorable. Mr Wick noted that a CBIA survey revealed that virtually 70% of those involved in the SB800 process felt the need for guidance by a “neutral fascilitator” to make the process even more effective.
As a “Neutral” Judicial Referee – Special Master, Arbitrator, and Mediator, in Northern California and Nevada, I have seen benefits from both Early Neutral Evaluation and Fascilitation in resolving real property and construction disputes. Notwithstanding the sometimes understandable cynicism that infects laudable attempts to secure resolution, SB 800 is proving to be effective in bringing resolution to those claims that previously served to seed burgeoning construction defect litigation.
