Great example. Did you do that in Simsol?
No, I designed my report myself in Microsoft Publisher way back in 98 and have been updating it ever since.
This guythought it was a good idea, at first. I think he came to regret it, though.
*“The court ordered Toth to pay the $192,000 difference between his estimate and the final repair bill.” *
How many times are you going to use this case improperly?
Well, Eric … I look at it this way.
This guy had his estimate and agreement challenged in a court of law and lost $192,000.00.
You have not had your estimate and agreement challenged in a court, yet, and have nothing to back it up.
This makes his estimate and agreement much more relevant, IMO.
I am certain that Mr. Toth was equally as confident that his estimate and his agreement protected him and, even if he wins his very expensive appeal, I’ll bet he still wishes that he never included it in his report. “The court ordered Toth to pay the $192,000 difference between his estimate and the final repair bill.”
Once again, I will have to lead you down the path of logic and how the judge ruled, not what you make of it.
The first issue is the contract. The Judge ruled that it was not valid as there was not sufficient time to review it prior to the inspection.
That, in itself, opens the gate to everything else.
The second issue was that the inspector was negligent and with that, comes the ruling.
This was an easy case for the Judge because of those two items mentioned above. It is quite apparent that the inspector didn’t do what he was supposed to on several fronts. His attorney should have settled long before he got to trial.
I realize you are stuck in your belief that this was a suit about giving estimates, but clearly, it has to do with contract law and negligence.
Unlike you … I lack the ability to look inside the head of a judge from an article written in a newspaper.
I only know that … as a result of including an estimate in his report … this inspector was ordered to pay the $192,000.000 difference between his estimate and the actual costs of repair.
That says it all … without any psychoanalysis or theory of law made from a home inspector on a message board from a newspaper article.
BTW, the first issue is NOT “the contract”. The inspector was not taken to court because of his contract.
The first issue and the catalyst for the entire lawsuit was that the client bought a house expecting to make repairs costing $20,000 that were actually ten times that amount. Had this not happened, it is unlikely that the contract would have even been brought into question.
The second issue was the fact that the inspector’s attempt to limit his liability with his contract failed.
The bottom line is … if he had not made the estimate, there would be not be a $192,000 difference between it and the actual repair.
“The court ordered Toth to pay the $192,000 difference between his estimate and the final repair bill.”
As you are well aware, the specifics of this case are in one of your other posts where it clearly demonstrates that it was negligence.
Most here know what you are trying to do and it won’t work.
As I said in another thread to you, show me one case where the home inspector was sued for giving estimates. You can’t.
No inspector will be sued for “giving estimates”.
He can be sued, however, when a person using his estimate as part of a decision to buy a house and his estimate is wrong.
It cost this guy](Home inspector must pay $192,000 | CBC News)$192,000 plus his legal expenses.
How many court challenges have your estimates and contract successfully prevailed in, Eric?
No, he was sued because he was negligent…which anyone can be successfully sued for. Once you lose that argument, everything else is fair game. As I said, this guy should have settled early on or just closed up shop.
In answer to your question bolded above, it has never happened. When it does, you will be the first to know!:mrgreen:
What did they base the $192,000 award to the client on?
His contract? His negligence? … or the difference between his estimate and the actual cost of repair?
I think there is enough information provided for prudent inspectors to decide on their own, from this point.
You are putting the cart before the horse.
If there was no negligence, there would be no judgment and no amount to be discussed.
The judgment of guilt came first. As to the monetary value, I don’t remember what the original amount sought was, but perhaps the Judge may have felt the amount was reasonable and probably more of a punishment that he could back up in the event of an appeal.
Speaking of which, isn’t this case being appealed as we speak?
As for other inspectors, maybe we can hear from the Texas inspectors.:mrgreen:
Isn’t that how the last thread ended?
Eric, you give estimates. I appreciate your need to feel safe in providing them.
None of this, however, changes the fact that an inspector who provides an incorrect estimate can be made to pay the difference … as the case in point illustrates.
Until your estimate and agreement is challenged in court, it is simply an opinion of yours that is no more valid than any opinion opposing it.
For the umpteenth time, as my Mother used to say…The fact remains that the inspector was negligent.
In any court, after that fact is proven, the method to determine damages can be many. In this instance, it would appear that the Judge decided that not only was the inspector negligent, but also, gave his clients an estimate in lieu of recommending a structural engineer, and that was what he was punished for. Judges tend to punish those severely who they feel have harmed the public. Ask one.
Getting back to the topic at hand, I give estimates because that is what most people want to know. How much is it going to cost to fix this?
After crashing your car, you could look at it and see what is wrong. Do you stop there or do you take it to someone who does the work for an estimate?
Since I have done all the work, I can estimate fairly accurately what things will cost.
If you want to give estimates, fine. If you don’t that is fine as well.
Personally, I would like to know what something is going to cost to fix and not have to call in six other people to get that information.
If I had to call i others, my next question would be, why did I call you in the first place?
It boils down to this, if you give an estimate you are assuming some liability. Even if it is just defending yourself it is a risk you should consider. It could in the worst case result in a major financial loss.
I would submit the risk is minimal at best.
Even if I were to consider the case Jim cited, if the inspector was almost 200K off in his estimate, he probably shouldn’t be giving them.
I agree.
Ours is a risky business. Before assuming more than what is already there, one would be prudent to carefully weigh the benefit(s) of intentionally adding any more.
In a market like Florida where anyone could get a license… providing estimates separates the contenders from the pretenders.
Furthermore it builds your reputation with the buyer’s agents who truly want the best for their clients. I have been working for some buyer’s agents for about 10 years now and never need to worry about the shake-&-bake inspectors stealing them away. In the big picture… Providing estimates is a big reason why I’m still in business in a depressed market.
I have been providing estimates (upon request) for Residential Inspections since 2000.
For Commercial Inspections, “cost to cure” estimations are an expectation.
What qualifies those of you who do provide the estimates?
How do you ensure that is what it will take to either bring back to original, improve, or change completely?
It is nothing more than a Fu-king guess.
That is why I do not do it.