MEC&F Expert Engineers : SUBROGATION OF CONSTRUCTION DEFECTS

Wednesday, June 10, 2015

SUBROGATION OF CONSTRUCTION DEFECTS





Construction defect investigations and litigation, like our large property & casualty claim investigation practice, is expert-driven.  METROPOLITAN’s experts interact almost daily with lawyers in various specialties.  Our experts have the substantive knowledge, training, and experience to cut through the technical legal jargon and trade-speak smokescreen that many lawyers throw up to disguise a bad faith position.  This smoke screen does not deter our experts when helping interrogating adverse experts.  Our playing devil’s advocate with the legal staff to ensure a complete, thorough, accurate and defensible expert opinion.
Most of the states experienced a building boom during the period that preceded the economic downturn.  Contractors were building quickly; construction work and jobs were plentiful; but the pool of talent was limited.  This created a fertile environment for mistakes.  METROPOLITAN expects construction defect litigation to be a prominent component of its claim investigation and subrogation practice for the next decade.
Early intervention is the key to recovering subrogation dollars.  At METROPOLITAN, it’s our specialty.  Arriving promptly at the scene and gathering critical information, getting the right parties on notice of a loss, ensuring that evidence is protected and analyzed – we know that it is efforts like these that maximize recovery for the insurer.  Our experts are unique in that they are as comfortable leading the charge at a equipment damage or fire loss scene or in a laboratory examination as they are in a courtroom testifying as experts.  Our expertise in fire and accident investigation, causation theories, and fault analysis provides an unrivaled foundation when it comes to complex loss litigation.  We also have access to a network of skilled lawyers who are ready to support us in analyzing your loss and advocating in court when the loss warrants it. 
We understand that subrogation for you as an insurer not only involves the recovery of what is rightfully yours, but also represents a major profit center for your business.  At METROPOLITAN, we make every effort to maximize your profit by giving each claim, big or small, the attention it deserves – and all that by charging you a small hourly fee for our investigators.  And we persevere –Subrogation is not a side business for us; rather, it is a keystone of our practice and expertise. 
Whether you have a property damage claim ready to pursue or are simply seeking advice on whether a loss has subrogation potential, we stand ready to assist.  Our staff is versatile and can adapt to your reporting systems and on-line claim management programs, becoming a seamless member of your team.  We also work closely with your insureds, providing them another level of customer service that reflects on you as a carrier, helping you retain your customers.  When we can recover subrogation dollars for you and a deductible for your insured, it’s a win-win situation. Let METROPOLITAN help you make that happen.

Structure Collapse Claims

There are few loss investigations which can be more problematic than large structure collapse claims.  The construction of commercial buildings requires input from a myriad of contractors who must work closely with the other contractors on the project to ensure that the finished project is proper and safe.  When these buildings collapse, it is often difficult to pinpoint the precise cause of the failure, and identify the entities responsible for the loss. Through the assistance of our highly-trained experts, METROPOLITAN can coordinate the investigation of these losses, and let the insurance claims handler focus on getting the insured back on its feet.  We have handled numerous large building collapse claims, including claims stemming from the collapse of roofs throughout the United States.

Fire Suppression Systems

Building Codes and the National Fire Protection Association (NFPA) identify numerous types of fire suppression systems which can be utilized in various residential and commercial structures.  Determining how and why these systems fail takes skill and expertise.  At METROPOLITAN, we have handled suppression system failures in both large and small buildings, and in commercial and residential structures.  Through the use of highly-trained experts, we can lead the charge in identifying the circumstances surrounding these failures, and assist you in recovering the subrogation dollars to which you are entitled.  Failures of products, negligence of public utilities, general contractors, and electricians; human error (such as improper use of the structure or product); vehicle fires; and failures from a manufacturer's culpable conduct in design, manufacture, testing and warning, all may lead to subrogation.
This October 5th-11th marks the 93rd year the National Fire Prevention Association holds their Fire Prevention Campaign. The campaign was first launched in 1922 after President Woodrow Wilson issued the first National Fire Prevention Day proclamation to commemorate the Great Chicago Fire (October 8th, 1871).
This year the theme is “Working smoke alarms save lives, test yours every month!” As part of the theme the NFPA has released some tips for installing, checking, and maintaining smoke alarms.
Below are some smoke alarm tips from the NFPA:
       Install smoke alarms inside and outside each bedroom.
       Install smoke alarms on every level of the home and in the basement.
       Large homes may need extra smoke alarms.
       It is best to use interconnected smoke alarms so that when one alarm sounds they all sound.
       Test all smoke alarms at least once a month.
       There are two kinds of alarms. Ionization smoke alarms are quicker to warn about flaming fires. Photoelectric alarms are quicker to warn about smoldering fires. The fire department recommends using both types of alarms in the home.
       A smoke alarm should be on the ceiling or high on a wall. Keep smoke alarms away from the kitchen to reduce false alarms. They should be at least 10 feet from the stove.
       People who are hard-of-hearing or deaf can use special alarms. These alarms have strobe lights and bed shakers.
       Replace all smoke alarms when they are 10 years old.

Construction Defects

Many states have a rather complex statutory scheme in place for handling contractor liability claims.  Without proper adherence to these statutes, construction defect claims can be lost even before the investigation gets underway.  METROPOLITAN is well-versed in the handling of these claims, and has handled a wide variety of construction defect, fire and water subrogation claims which stem from the improper construction of commercial and residential properties or the incorrect installation of equipment or appliances by the contractors.  The subrogation of these losses include: Losses due to poor construction practices; claims against architects, building designers, general contractors, developers, the design team of engineers, and the various subcontractors; and claims against public entities.

Mold
Mold can occur as the result of the original loss or as the result of a contractor's repairs.  Mold is especially prevalent in the South due to high mumidity.

Burst Pipe Losses

Burst pipe and freeze failure claims really aren’t as simple as they look.  Did the pipe line fail due to the insured forgetting to keep the heat on or due to abrupt freezing temperatures or due to some insulation or material defect in the pipe itself? Perhaps it was a combination of factors which led to the failure? METROPOLITAN has extensive experience in the handling of flood claims which stem from the failure to properly insulate and protect water supply lines.  With our employment of some of the best engineers and metallurgists in the country, METROPOLITAN can assist you in establishing the mechanism of failure with respect to these losses, and make sure that you are maximizing your recovery of subrogation dollars.
Water Damage
These types of subrogation losses include: Failures of water and flood-control systems due to improper design, construction, and maintenance, whether by public entities or private contractors.

Fireplace System Failures

Over the years, METROPOLITAN has handled numerous claims stemming from the improper installation and maintenance of fireplace systems in homes throughout the United States.  Recently, we successfully investigated several fireplace system installation negligence claim which resulted in at least $5 million dollar settlement in favor of our subrogation clients.
METROPOLITAN has extensive experience handling multi-million dollar property loss cases arising from:
·         Defective Drainage Plane Construction
·         Defective floor Coating Applications
·         Defective Windows
·         Direct Applied Finish Systems
·         Exterior Insulation Finish Systems (EIFS)
·         Improper Vinyl Siding Installation
·         Mold Claims
·         Roof Leaks
·         Structural Design Flaws
·         Traditional Stucco Claims (Portland Cement Plaster)
·         Fire damage resulting from gas leaks
·         Water damage resulting from water leaks
·         Automobile liability cases
·         Product liability
·         Industrial equipment electrical and mechanical failures
·         Electrical malfunctions
·         Gas malfunctions



SUBROGATION SERVICES AT METROPOLITAN
METROPOLITAN has broad experience handling subrogation claims arising from water, fires, explosions, construction defects, product failures, energy and oil release claims, and boiler and machinery failures.  Our cases range from highly complex commercial losses to smaller scale business and personal lines claims.  Claims we handle include:


  • alarm/security
  • boiler
  • building, roof, crane collapses
  • building system failures
  • chemical explosions
  • construction defects
  • earth movement
  • electrical failures
  • employee dishonesty
  • environmental
  • explosions
  • fires
  • floods


  • geotechnical failures
  • grill malfunctions
  • industrial accidents
  • industrial equipment failures
  • machinery and equipment failures
  • mechanical failures
  • mold
  • natural gas explosions
  • product liability
  • sewer back-up
  • steam line failures
  • spontaneous-combustion fires
  • spread fires
   We routinely involve our teams of origin and cause investigators; civil, structural, geotechnical, electrical, mechanical, metallurgical, materials, and automotive engineers; combustion scientists; fire protection specialists; certified fraud examiners; accountants; law enforcement; and coverage counsel in the underlying claim to analyze and determine the causes of losses and accidents.  We work with outside or insurer counsel to ensure thorough analysis, proper evaluation of losses, and to exhaust and/or eliminate alternative theories.  We, along with the team of lawyers, develop non-destructive and destructive testing protocols, coordinate transfer of evidence and preservation of evidence.
Metropolitan Engineering, Consulting & Forensics (MECF)
Providing Competent, Expert and Objective Investigative Engineering and Consulting Services
P.O. Box 520
Tenafly, NJ 07670-0520
Tel.: (973) 897-8162
Fax: (973) 810-0440
E-mail: metroforensics@gmail.com
Web pages: https://sites.google.com/site/metropolitanforensics/
https://sites.google.com/site/metropolitanenvironmental/

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