InterNACHI's inspection agreement which limits liability to the cost of the inspection upheld in Michigan

Frank Lopez|2:34 PM (2 hours ago)

|to nick@internachi.org

Hi Nick,

I want to pass along some good news. A Michigan court recently dismissed claims against an InterNACHI member who was sued over an inspection. In dismissing the claims, the Court upheld the terms of the inspection agreement the InterNACHI member agreed to with a home buyer. The contract term at issue, modeled after the InterNACHI home inspection agreement template InterNACHI makes available to its members, limited the inspector company’s liability to what the home buyer paid for the inspection. This is a very good outcome for the inspection company. This also serves to once again demonstrate the great value InterNACHI provides through the multitude of resources made available to its members. Kudos to you and the entire InterNACHI team!

Frank Lopez
Shareholder
Glade Voogt Lopez Smith, P.C.
1800 Gaylord Street
Denver, Colorado 80206

9 Likes

Fantastic jurisprudence limiting liability to inspection fees.
I hope this sticks. No reason for inspectors being liable for life for past inspections.
No one else is held responsible for life for error and omissions.

1 Like

A couple of years ago, a HI in Thornton, Colorado had the case against him dismissed, but the judge asked the plaintiff why they were even here when per the terms of the inspection agreement, they could only get the cost of the inspection back.

2 Likes

Client wanted the home bought back but it was a termite issue so they wouldn’t honor the buy back guarantee.

Client was upset about the “If We Miss Anything” and her lawyer thought I should be on the hook for the buy back since InterNachi refused to.

I won the case and was going to have to refund the $375 Home Inspection fee but the client denied the amount so we got it dismissed to $0.

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Does that mean it’s not over yet?

My lawyer said they dropped me from the case but may be pursuing InterNachi for the buy back. I might have to go in for disposition if that occurs but my lawyer thinks it’s not likely to happen. He also said it is very unlikely that they will appeal. Contract is strong!

Turns out in the end it only cost me $8600 for lawyer fees. They are not making me replenish client funds with the $1500 since it is over.

3 Likes

Excellent news for home inspectors !

Not so much for The Buy Back “program”.