Protecting Homeowners from Unscrupulous Attorneys and Inspectors
Chapter 40 is a law under the Nevada Revised Statutes that specifically addresses construction defects and related claims in that state. It has resulted in a dramatic change in Nevada CD cases and is similar in some ways to California Senate Bill 800. One similarity between the two is the difficulty most people in the industry, let alone affected property owners, have in understanding the laws. Homeowner advocate, Rick Reese, who runs both the Exposing New Homebuilders blog and the New Homebuilders News Blog, discusses some of the tactics used by some attorneys in Nevada exploiting loopholes in the Chapter 40 law.
In Nevada, a homeowner has two options, they may either file a claim with the Nevada State Contractors Board at no charge or they may contact a lawyer and file a Chapter 40. Chapter 40 was written to protect homeowners with homes that have true defects. A Chapter 40 done by a reputable attorney should only cost the homeowner $40; all other costs are recouped in court from the builder. An attorney that is implementing Chapter 40 in this way, which is the way the legislature intended, will NOT take a case they cannot win because they will not be paid.
According to Reese, some attorneys are including a cancellation fee in their contracts with homeowners similar to what mobile phone carriers use. If a case will not proceed under Chapter 40 rules, the attorney charges the homeowner a $6,000 fee. More reputable attorneys, he points out, will instead recommend homeowners utilize the free services of the Nevada State Contractors Board which may result in a speedier resolution to construction defect issues. Perhaps the windfalls associated with construction defect litigation in Nevada are not so easy to come by…
16 September 2007 | Construction, Construction Defect, Construction and Law, Litigation | Comments
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