LiMa Solutions

Press Release – June 1

LiMa Solutions Finds Lower Cost Alternative to Resolving Construction Defect Claims

Current approach to construction defect litigation is unsustainable and hurting the housing industry

CARLSBAD, Calif. and KEY WEST, Fla., June 1, 2011 /PRNewswire/ — The current model of resolving construction defect claims is failing. A typical claim takes, on average, two to three years to settle. Moreover, it is estimated that most insurers are paying out $2.50 for every $1.00 they collect in premiums for construction dispute insurance.  Given the current economic situation and the fact that we are in the middle of the worst housing market in our nation’s history, the industry can’t afford to continue resolving construction defect claims this way.

When a developer or subcontractor finds itself litigating a construction defect, in most cases, the cost to litigate is in excess of the indemnity – that is, the legal expenses are amounting to more than the cost for losses, repairs, or replacements. The Building Industry Association estimated that these costs may exceed indemnity costs by as much as five to one. Not only is this approach unsustainable, but it is forcing some developers and many sub contractors – hard working Americans – out of business.

LiMa Solutions℠ is taking a new approach toward finding a solution to the growing costs of construction defect litigation. This unique approach, called Value Engineered—Alternative Dispute Resolution℠ (VE—ADR) is cutting through the unnecessary litigation and moving toward quick resolution on construction defect cases. Ultimately, cases that previously took years to resolve are reaching resolution in under a year.

“Why is our solution working? We take a more reasonable, practicable and equitable approach by conducting a thorough evaluation of the allegations,” says LiMa Solutions President Edward Martinet. “We conduct this assessment with complete neutrality and transparency, so that all the issues are out on the table. Without closed-door talk, we are effective in facilitating a productive conversation that results in a quick resolution.”

LiMa’s VE-ADR approach uses neutral construction experts to guide the mediation process. These experts apply their project management expertise, which helps to move along the process in a timely manner. The firm also uses effective project management tools that accelerate the mediation process, such as “cloud” computing and real time data storage to engage all stakeholders, share the facts and track progress on a daily basis.

Ed Martinet along with legal experts discussed the challenges of the current construction defect business model at the West Coast Casualty Service Inc. Annual Construction Defect Seminar on May 13. Learn more about LiMa’s approach and view video of the panel discussion here http://limasolutions.com/adr-tips-resources/value-engineered-alternative-dispute-resolution-by-ed-martinet/.

About LiMa Solutions short for “litigation management” LiMa Solutions specializes in alternative dispute resolution and claims management for the construction industry. LiMa Solutions brings together more than 80 years of construction management, forensic investigation and conflict resolution experience. With team members strategically located on both the east and west coasts, LiMa Solutions is uniquely positioned to serve clients across the country. Website: http://limasolutions.com/.