Avoiding Litigation: A Continuing Dialogue

By Keith Swift, PhD
InterNACHI member/InterNACHI Report Writing Consultant
President, Porter Valley Software

Inspectors have been discussing ways to avoid litigation since our industry began. This is important, but particularly for new inspectors, and here are a few thoughts on the subject.

To be a professional inspector you must be well-trained, and training should be an ongoing process. For several years, I had no idea how air was cooled, and there was no excuse for that; I was ignorant, plain and simple. And even now, after eighteen years, my knowledge of electricity is still limited, but at least I’ve learned enough to recognize a defect, which brings up the question of whether inspectors are generalists or specialists. I’ve written about this in a separate article, and realize that this is a question that inspectors will never agree on. But I’ll continue to assert that our clients and the courts tend to regard us as specialists, and that this is not something you want to learn about after you’ve been sued. I realized a long time ago that I could do a much better inspection and, at the same time, protect myself against litigation if I used specialized tools. And I’ve also written about this in a separate article, but specialized tools are essential, and the higher the quality the better, and particularly when it comes to personal safety. At a minimum, an inspector should have a ladder, a rechargeable flash-light, screwdrivers, socket wrenches, pliers, a pressure gauge, several electrical testers, a moisture meter, a spirit or laser level, a framing square, a contractor’s tape, an infra-red thermometer and, preferably, fiber-optic equipment. However, there are many more important tools, including infra-red imaging devices that sell for around eight thousand dollars, which is a bit too expensive for me, but I’m still considering the investment. Regardless, better tools usually mean better inspections, and it also means better protection against litigation. But your five senses are the most sophisticated of all instruments, and you’ll probably see or sniff-out many commonplace problems, like mold for instance, before they are confirmed by your instruments. But let’s talk a little about the inspection process.
 
I always arrive at the site early; that way I’m rarely late, and I’m able to relax and study the lay of the land. I tend to regard every inspection as though I’m on a patrol in hostile territory, and I want to be able to decide where the lawsuit-attack might come and where I’m vulnerable. The biggest lawsuits involve water. So, I ask myself: “How is the water, or run-off, being handled on this site?” If the grading and drainage control is not perfect, I’m shooting it down. I have a detailed and perfectly rational and reasonable narrative that prints with every report that describes the ideal site and its system of drainage control. And if a site does not meet that ideal I will not endorse it, and recommend a second opinion by a specialist. Call me a deal-killer, but I’ll not willingly be a fool, or the victim for that matter. Everything else on the site, apart from potential environmental hazards, does not pose such a significant threat as water, but I inspect everything, and report on anything that’s not perfect. I even have narratives that warn my clients about things that are disclaimed in my standards. For instance, I warn them that tree-houses, swing-sets, bird-baths, fountains, ponds, and statuary can prove to be hazardous to small children. And I do this because although they give enormous joy to children they are also the stuff of which lawsuits are made, and one small narrative might prevent an accident or save a life, and you don’t want to be named in a lawsuit involving an injury or the death of a child. This may sound as though I spend more than the usual amount of time on an inspection, but I don’t. I have thousands of narratives in my library that only require a click of a mouse, including some that caution clients about commonplace maintenance issues. You can never be too conscientious. Ask any attorney. Remember, your standards proclaiming you as a generalist may protect you in court but, as I’ve also argued elsewhere, once you’ve been named in a lawsuit you’ve lost, even when you win.

When we talk about what happens to water, we must also consider its adverse effect on foundations. The word foundation serves as a metaphor for everything that is firm and solid, and our clients are naturally concerned about the foundation on which their home rests, So, make sure that you provide them with narratives that inform and educate them about foundations, and be darn sure that you determine whether a foundation is level or not. More damage has resulted from differential settling and unstable soils than from most natural disasters; strange but true. And when you talk about what happens to water, you naturally think about roofs.

Among the commonest of all questions that inspectors are asked is: “How’s the roof?” And that’s a difficult question for any inspector to answer. Naturally, you should have an educational narrative about roofs in general, and ones for specific roofs, which make it very clear that only an installer can credibly guarantee that a roof won’t leak, but when roofs leak inspectors are very likely to hear about it. I spend more time on site inspecting a roof than anything else, and particularly a flat roof, even in the middle of summer. As far as I’m concerned, every pitched roof should only have one layer and be in absolutely perfect condition for me to endorse it, and that includes having a viable drainage system, and I live in sunny southern California. Even when a roof appears to be new, I recommend that my clients obtain documentation that would ensure that the roof was installed with permit and by a professional.

Plumbing has contributed to litigation, but most inspectors are able to evaluate it as well as most specialists. Just remember, when it comes to plumbing, size does count. Let’s consider supply pipes first, and then waste pipes. Obviously, copper supply pipes are the most dependable but, for economic reasons, you’ll be seeing more and more plastic ones. Galvanized pipes should always be considered suspect. Their inner diameter is subject to occlusion by minerals that restricts volume, or functional flow, and plumbers are fond of reporting this before insisting that a residence needs to be re-piped. So always test the functional flow, and never categorically endorse galvanized pipes. My computerized report-writer will not allow me to do so, and I actually demonstrate any reduction in flow to my clients, and allow them to decide whether it’s mild or moderate, and I always recommend a second opinion. As for waste pipes, the age of the house will speak volumes. If they are a modern ABS type, you can relax a little, although some were made with defective polymers and have been litigated. Nevertheless, inspectors should put every trap under pressure, observe the draw, check for leaks, and they should never endorse a sewer main. I have multiple narratives that recommend having a sewer pipe video-scanned for a variety of reasons, ranging from the age and type of the pipe, its distance from the street, its proximity to mature trees, and even a narrative that prints automatically that remind my clients that I cannot endorse what I cannot see, and that only a video-scan of the main sewer pipe would confirm its condition. Most people are reasonable and rational, but don’t count on it.

Whenever I evaluate electrical panels, I put my personal safety ahead of everything else. I won’t even touch a panel without making sure that it’s not energized. I also tend to remember an inspection that I did years ago when I was still a novice and using hand-written check sheets. The main panel was such a mess that I was having a difficult time distinguishing wire sizes and seeing where they attached, etc. So I wrote that the panel and all other electrical components needed to be evaluated by a licensed electrician, because the wiring was not only too sloppy for me to evaluate but indicated sub-standard workmanship. This included the wiring to a portable spa, which had been added and did not respond to the controls. Within a few weeks, I learned that a handyman had been electrocuted while attempting to re-wire the spa. Decent people don’t need to be reminded that electricity kills, and there is no excuse for a panel not to be wired neatly, and no reason to endorse one that isn’t. I realize that the National Electrical Code is not retroactive, but if something does not meet the latest code, including something a simple as an ungrounded outlet, it’s a safety-hazard as far as I’m concerned that needs to be corrected. I’ll finish by saying a few words about heating and air-conditioning.

For years, I didn’t use any specialized instruments, or give any detailed information. Then I was forced to learn a few lessons the hard way. Now, I no longer rely on standards that disavow an evaluation of combustion chambers. Instead, I take the time to remove the flame covers and heat up combustion chambers, after which I turn off the heat and use a fiber-optic probe that allows me to see inside most combustion chambers and recognize anything that might resemble a crack. Remember, a crack can facilitate the production of carbon monoxide, the silent killer, and you don’t want a death on your conscience. In addition, I give detailed information about the equipment, including the manufacturer, the age, and the design-life of various components. As a consequence, my inspection is probably more stringent than those of HVAC contractors, if only because I also crawl around in attics, and I’m very conscientious about identifying and evaluating ducts and anything through which air passes. Regardless, every one of my reports cautions my clients that the Consumer Products Safety Commission has confirmed that indoor air pollution rates fifth among the leading contaminants, and that it is the client’s responsibility to test air-quality, and not mine.

Nevertheless, the most essential specialized instrument that you will ever own is a computerized report-writer. I’ve argued this at length in many other articles, to summarize, a computerized report-writer is simply a mechanism of storage and retrieval that allows inspectors to access data that they couldn’t possibly hope to retain in their memories, which can include “alerts” and “recalls” from the CPSC as well as affording them the ability to produce thousands and thousands of sophisticated narratives that they can continuously polish and add to, all of which contribute to the production of a professional reports that can shield them against litigation. I tend to regard myself as a soldier of fortune; my laptop is my weapon, my narratives are my ammunition, and every inspection is an incursion into potentially hostile territory.
 
 
 
 
 
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