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I just posted this on the constrction thread but I'm angry and want perspective from everyone that has been sucked into this scam.
;) This is happening all to much. Somebody or something screws up. The party responsible refuses to except that responsibility and drags everyone that had anything to do with the project into the lawsuit because they know they can. They know it would cost us less to contribute to their settlement than the expense for us to prepare and be dragged into trial. Not only will we have to pay the deductible, but as usual, we will either get canned by our insurance company, or they will raise the rates. Is there no way to protect ourselves from this blatant abuse? It has happened to just about every contractor I know. Yesterday I saw a perfect example. I went on a alternative home tour and saw a beautiful home where the construction was halted because of this legal abuse. The new windows and doors have defects and leak. The manufacture has been unable to fix them. The windows and doors have to be completely removed and replaced. The manufacturer (KOLBE & KOLBE) won't step up to the plate and pay for all the expenses they have caused to resolve the matter. The homeowner is forced to sue Kolbe . Even though all the discovery proved the windows and doors were defective, the manufacturer turns around and sues every sub they can regardless it was proven that Kolbe's product was at fault. What a crime! It's no wonder why insurance rates are so ridiculous. The only recourse I can think of is to no longer spec that companies product on any future jobs. But what about all the others? Stucco contractor, Painting Contractor, Architect... How can they retaliate? The biggest victim is the homeowner. Their new beautiful home has been vacant for a couple years now because these corporations, insurance companies, and attorneys can pull this #%@&. At least the homeowners aren't lying down. They are putting up a fight. http://www.leakywindows.com
This legal system is a cancer to the construction industry. Any ideas???
JIMBO
 

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Jimbo, I have never suffered through being sued, furthermore, I have never had a complaint through the BBB, Chamber or TCBA.
I assume through your diatribe that you are a GC, not that it makes a difference.
Your post was invaluable in that I will contact my attorney later today and investigate what type of clause can legally be added to my current contract to prevent or negate future problems. If you are a GC, look out as all of this weight is going to fall on your shoulders.
I only sub to a couple of national developers who are used to absorbing court costs all of the time and my checks have always arrived on time.
 

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sued again

Cross complaints for indemnity against everyone under the sun is a standard maneuver to delay the trial and to spread out the burden of settlement. Perhaps these Subs should threaten to file suits against Kolbe for malicious prosecution after they obtain summary judgement on each cross complaint.

Another way for the homeowners to fight back is to start pushing the mold issue. I would guess that Kolbe's insurer is involved. If so, they love to drag these things out as long as possible. If these windows have been leaking for a few years now, there is a high probability of mold. If it has not been done already, you might want to suggest to the homeowners to hire a mold inspector to test around each of these leaking windows. Insurers are terified of mold claims and this might put some fire under their a$$ to stop jerking around these homeowners! I'll take a look at their website.
 
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Leakywindows, great name for a site at odds with a window company! Maybe if everyone built web sites in response to these actions, corporations would consider treating their customers a little more fairly. My Mason got dragged into a suit in the similar way. He absolutely had no fault in the original problem and his insurance co. paid 10k just to get out. You can guess what they did to his rates after that!
 

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Discussion Starter #6
Mold

Easystreet I think they are looking into the mold issue. Are you an attorney? You sound like one. No offense! Did you get into the web site? They finally opened it up today. www.leakywindows.com -J
 
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Sued again

Jimbo, this is a serious subject which is happening more than people know. One out of three of my associates in the bus. have been unfairly pulled into these legal matters, and it wasn't pretty. I'm surprise at the minimal response on this board. Unfortunately most people don't give a %%%% about these problems until it happens to them. And once it does, they won't have time to reply to your post because they will have a second job to pay for their attorneys. Only solution I can see is for insurance companies to start writing policies that guarantee they won't can you or raise your rates if you are hit by one of these lawsuits. Or for the legal system to change. But unfortunately I think we are crazy if we ever believe we'll get either of these.
Ben
 

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20 some odd years in the biz and never sued until last year......twice....same projrcet.....by suppliers.......great work......but customer wouldn't pay......promised payments, then renigged........devorce got me in a bind or I just would have pulled it out of pocket........I should have sued the customer, but a few thousand wasn't worthit in my eyes..........before it was done that few thousand turned into 6.

Anyhow, Your Question: how do we protect ourselves? my answer is JUDICIAL REFORM.

Bob
 
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