Home Inspector E&O Insurance

What is the name of your state? OH

Case Description:

I purchased a house in Mar. 2000 and had an inspection. The inspector mention two rusted metal beams in the cold storage unit under the front porch that needed to be replaced. The seller got an estimate for $750 to replace the beams and we split the cost $375/each and signed off on the inspection. The seller put a clause (hand-written) at the bottom of the final sale contract noting “Seller agrees to contribute $375 towards purchaser’s pre-paids. Purchasers accept home inspection. After title transfer seller is released from any liability”. This was fine with us at the time because we had agreed to get the beams fixed when we got back on our feet after buying the house and I thought it was to protect her if something happened before that time. In Sept. 2000 I had another contractor come out to give me an estimate on fixing the beams and was told that there was a much bigger problem and was given an estimate for $16,900 to replace the foundation and walls which were caving in. Later, I found out that the contractor who gave the seller the estimate for $750 also notified her at the time that it would cost around $15 - $16,000 to properly fix the area. The contractor told me that the seller was only interested in an estimate for the “Metal Beams” mentioned in Section #708 of the home inspection.

“Metal Beams under front porch are rusted and starting to buckle. This is a safety hazard and requires immediate attention. Suggest contact qualified licensed contractor for repairs/replacement as necessary.”

I have filed suits against both parties, the seller and the home inspector, and to date have had no resolution.

Against Inspector:

We are claiming that the inspector negligently did not disclose the depth or full nature of the problem in the cold storage unit which cause the seller to only get a estimate on the metal beams. We were scheduled to go to binding arbitration on 05/23/02 when our action was stayed due to federal bankruptcy case filing by inspector. The inspector had errors and omissions insurance that should cover the damages, but we can not get a judgement against him in order to file the claim. I have recently found out that the insurance company initially denied the claim saying they didn’t believe there was merit to the claim. We have two reports on the condition of the cold storage unit which we had done by a qualified P.E. or Forensic Engineer in which one states:

“The inspection revealed that the concrete slab is seriously deteriorated from water intrusion and freeze/thaw action. The steel forms and steel beams are deteriorated, all beams should be replaced. The tile walls are cracked and are moving inward. Walls and slab are leaking. Complete replacement is indicated.

It is in the writer’s opinion that a qualified professional, either engineer or inspector, viewing the area would be aware of the condition and the repairs required both the nature and extent. The extent of the condition should be readily apparent.”


How can I proceed?

[HomeGuru]

You can't proceed unless the BK stay is lifted.