Diversifying  Your  Prac2ce  for  Financial  Gain  and  Survival  

 

Kerry  N.  Jardine  Managing  Shareholder  

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The                              Story  

Sewed  straps  made  of  neoprene  from  wetsuits  $3.05  35-­‐mm  camera  made  in  China  was  first  prototype  Sold  first  prototype  in  2004  at  a  trade  show,  which  included  camera,  housing,  and  strap  REI  contract  was  first  big  break    

GoPro  is  valued  at  OVER  $5  BILLION  today.  

In  an  industry  where  you  would  think  it’s  all  been  done  before…we  someTmes  stop  ourselves  because  we  believe  all  the  good  ideas  are  gone.    Expanding  world  =  greater  opportunity      

AddiTonal  rules  of  diversificaTon  

Never  leave  the  goose  that  lays  the  golden  egg  Expect  adversity,  piXalls,  and  traps  Long  term  strategy  Play  to  your  strengths  Don’t  force  it  Find  knowledgeable  Partners  and  Genius  Vendors  

MulT-­‐Million  Dollar  Verdicts    and  Se[lements  

in  ConstrucTon  Defect  LiTgaTon      

A  New  FronTer  

12  years  of  se[lements  &  verdicts  $39.5M  Construction defect, foundation, moisture intrusion settlement (226 units)

$26.4M Moisture intrusion, shear wall, sound transmission, structural fill defect settlement (65 residential and 16 commercial) condo owners

$32.5M  Product liability settlements (12,000 homes) with defective windows

$26M Building envelope, roof, drainage, and window product (200 residential, 4 commercial)

 $25M Structural defect and moisture intrusion lawsuit (86 units)

$24.3M Moisture intrusion, expansive soil, construction defect settlement (320 units)

   $18M Moisture intrusion, construction defect settlement (56 units)

12  years  of  se[lements  &  verdicts  

$17M  Building envelope, grading and drainage, concrete, roof, and window product (259 units)

$13M Leaking siding and artificial stone veneer, expansive soil, construction defect (282 units)

  $12M Construction defect (104 units)

$12M Structural defect and moisture barrier (98 units)  

$11.7M Construction defect (84 units)

$11.7M Negligent construction, negligent misrepresentation, breach of implied warranty, breach of fiduciary duty claims, moisture intrusion, and other construction defect claims

$10M Windows, brick veneer, balconies, and roof (265 units)

12  years  of  se[lements  &  verdicts  $8.8M Flooring system defect settlement (30 homes)

  $8.3M Defective building envelope, window installation, drainage, structural

support (206 units)

$7.5M Construction defect (24 units)

$7.35M Construction defect and faulty windows (57 units)     $6.85M Construction defect settlement (136 units)

 $6.2M Jury verdict and judgment – dipping bedrock (undisclosed number

of units)   $6.1M Bad stucco, construction defect (126 single family homes)

$5.3M Moisture envelope, EFIS, structural defect settlement (48 units)

FoundaTon  failures  

•  Expansive  soils  •  Hydro-­‐collapsible  soils  •  Slope  failures  •  Improper  compacTon  

Life,  health,  safety  issues  

Water  infiltraTon  

•  EIFS/Stucco  •  Flashing  errors  •  Window  product  failures  •  Mulled  windows  •  Leaking  •  CondensaTon  

Grading  and  drainage  •  Improper  grading  adjacent  to  structure  

•  Failure  to  design  for  50-­‐100  year  storm  criteria  

•  Perimeter  drain  installaTon  errors  

Exterior  cladding  failures  

•  Fiber  cement  siding  •  EIFS  •  DAFS  •  Stucco  

Untapped potential

•  Problems  jurors  can  touch,  see  and  understand.  

“WOW”  factor  

Jurors  idenTfy  with  homeowners  in  CD  cases  

•  Largest  single  investment  most  people  make  •  Developers  have  a  poor  reputaTon  in  the  community  

Complex  liTgaTon      

•  These  cases  are  not  for    the  novice  

•  Builders,  developers,  and  insurance  companies    strategize  to  win  

Typical  cost  burden    

Cost  advance      Two  years  to      Specific  skill      

       

Heavy  resource  commitment    

 Challenging  legal  issues:    Proof    -­‐  ExtrapolaTon    Economic  Loss  Rule    Statues  of  LimitaTon  &  Repose    Standing  issues    Insurance  coverage  issues    Avoiding  arbitraTon    Adhesion  contracts  -­‐  waivers  

   

We  wrote  the  book  on  construcTon  defect  cases  

Create  a  successful  CD  case  template  

How  do  you  get  these  cases?  

Who  do  you  know?  –   MulT-­‐family  complexes  –   Condos  –    Townhomes  –   Commercial  structures  

PlainTffs  construcTon  defect  case  success  rate  

100%

Thank  you  

Kerry  N.  Jardine,  Esq.  Managing  Shareholder