An Open Letter to InterNACHI Inspectors
by
Keith Swift, PhD
President, Porter Valley Software
Report Writing Consultant, InterNACHI
I’m a general contractor, and I’ve been doing residential inspections for
about eighteen years. During that time, I’ve written more than twenty articles
(available on a free CD to all InterNACHI members), warning inspectors about the threat
that litigation poses to their livelihoods, and I’ve documented the threat with
the testimony of actual lawsuits. Most inspectors will be sued sooner or later;
it’s inevitable, like income taxes and death. And one of the main reasons for
this is that they have errors and omissions insurance, which makes them attractive
targets. Let’s face it, robbers don’t rob little old ladies and lemonade stands,
they rob banks and liquor stores, places where there’s big money to be had. Several
attorneys have publicly acknowledged that innocent inspectors have been victimized
and will continue to be, and I’ve quoted them in several articles, word for word.
And, believe it or not, most of the cases that I’ve read have actually made a
joke of justice, principally because in the pursuit of money there’s little regard
for honor and justice, and also because insurance companies will typically roll
over and pay rather than defend an innocent inspector. But, there’s no point in
blaming insurance companies; they’re in the business of making money and not in
the business of serving justice, and they’d rather settle a bogus case for ten
thousand than spend forty thousand on an honorable defense. So what can we do
to protect ourselves?
Many attorneys want us to believe that our contracts, standards, and errors
and omissions insurance offer the best protection against litigation, and I wish
this was true. It could be in a hypothetical instance in which an insurance company
didn’t roll over, the case went to trial, and something in a contract or standards
resulted in the inspector being found innocent. But, even in this unlikely case,
what would the inspector have won? He would have lost thousands of dollars in
the combined loss of his deductible and the income lost during the time spent
in interviews, depositions, and the courtroom. Only the attorneys are winners.
But, let’s talk about insurance. As I’ve said, many attorneys would have
us believe that having insurance is what protects us. But, having insurance is
what gets us sued, and also guaranties that attorneys will be paid and paid handsomely.
In a response to one of my recent articles, a California attorney quoted me out
of context and alleged that I advocated not having insurance, which is not true.
I advocate having insurance; it’s an ethical and moral responsibility, but inspectors
should never delude themselves into thinking that it’s a way of avoiding litigation.
So, what can we do to avoid litigation? The ultimate solution is tort reform,
but that’s not likely to happen any time soon. In the meantime, the best thing
that inspectors could do for themselves would be to affirm that they are professionals,
professionals who have willingly accepted responsibilities that far exceed those
of other real estate specialists, and they should charge accordingly. For example,
they should consider doing one inspection a day for six hundred dollars, rather
than two a day for three-hundred. They should own the very best in specialized
equipment, and be proud to use it. Yes, I know what industry standards say about
us being generalists and not specialists, but standards have never precluded us
from doing a better job, only a lesser job. And let me assure you that regardless
of how we choose to characterize ourselves, our clients and the courts regard
us as specialists, plain and simple. So, what is the best way to avoid litigation?
Before I answer that, let us agree that there is nothing in the world that
can prevent litigation, but the penultimate way for inspectors to avoid litigation
is for them to invest in a sophisticated, computerized report-writer. Let’s face
it, a computerized report-writer is simply a mechanism of storage and retrieval,
a mechanism that can contain endless amounts of information, including national
and regional codes, recalled items, and thousands upon thousands of narratives,
all of which can be edited, added to, and retrieved with a single click of a mouse,
and all of which are designed to educate clients and confound those who would
seek to victimize inspectors. Let me give you just one example, that of a roof.
My report will automatically print out a general narrative on roofs, which describes
the different types, pitched and flat, and gives a rational explanation as to
why I cannot guarantee that a roof will not leak. Then, when I click on a specific
type, another narrative prints that explains what the roof is made of and how
long the manufacturer expects it should last. Then, all I have to do is to point
and click my way through the components of the roof, selecting appropriate narratives
from each that explains how I inspected it, and identifies conditions or recommends
service. And that’s just one example. However, the biggest advantage of owning
a computerized report-writer is that it enables inspectors to generate sophisticated
narrative reports in about the same amount of time that it would take them to
do an inspection, so that they can devote more time to the inspection and not
the report. I know, because I’ve done thousands of inspections, and been the victim
of frivolous lawsuits, before I acquired a computerized report-writer.
Some of you might be thinking: “Oh, I get it now; this is the president
of Porter Valley Software speaking and attempting to hype his company’s software.”
But, that is not true. Let me tell you the absolute truth, which I challenge anyone
to refute. The only reason that Porter Valley Software came into existence was
because many years ago I was victimized by two frivolous lawsuits in a five-day
period, betrayed by the system, and forced to conclude that only a sophisticated
narrative report-writer could provide me with the protection that I needed. I
realized that I could literally have code information, recall notices, and thousands
of industry-standard narratives that I could polish until they sparkled, together
with reams of other relevant information at my finger tips, information that I
could never hope to hold in my memory, and which were available to me at the click
of a mouse. As fate would have it, a computer genius was living on the same street
as me in Porter Valley, California, and Porter Valley Software was born. And that’s
the truth, the whole truth, and nothing but the truth, so help me God.
As the president of Porter Valley Software, I’d be a fool if I didn’t take
every opportunity to boast about our programs, but this is not the time or the
place to do so. Also, many of my articles were written long before I held that
position and, as someone who believes passionately in justice, I’m merely pointing
out that a sophisticated computerized narrative report-writer is the single most
effective means to avoid litigation, and I really don’t care what computerized
report-writers my fellow inspectors use as long as they use one. In fact, after
I demonstrate my software at conferences, I always advise inspectors to try those
of my competitors, so that they can make a more informed decision. And when inspectors
buy our software, the last thing I tell them is that they have thirty days in
which to receive a full refund if they are not entirely satisfied with it. Ask
anyone in the Porter Valley family of users. I don’t sell our programs, I demonstrate
them, and allow them to sell themselves. Competition is the essence of the free-enterprise
system, and what drives the economy, and there is nothing more appealing to consumers,
and nothing quite as disarming, as the plain truth. Change is difficult, any change,
but if you really want to avoid litigation and those nagging nuisance calls, throw
away your field notes and check-sheets and buy a sophisticated narrative report-writer.
