How to diversify your law firm for financial gain and survival

1. Diversifying
Your
Prac2ce
for
Financial
Gain
and
Survival
Kerry
N.
Jardine
Managing
Shareholder

2. 3

3. The
Story
Sewed
straps
made
of
neoprene
from
wetsuits
$3.05
35-­‐mm
camera
made
in
China
was
first
prototype
Sold
first
prototype
in
2004
at
a
trade
show,
which
included
camera,
housing,
and
strap
REI
contract
was
first
big
break
GoPro
is
valued
at
OVER
$5
BILLION
today.

6. In
an
industry
where
you
would
think
it’s
all
been
done
before…we
someTmes
stop
ourselves
because
we
believe
all
the
good
ideas
are
gone.
Expanding
world
=
greater
opportunity

7. AddiTonal
rules
of
diversificaTon
Never
leave
the
goose
that
lays
the
golden
egg
Expect
adversity,
piXalls,
and
traps
Long
term
strategy
Play
to
your
strengths
Don’t
force
it
Find
knowledgeable
Partners
and
Genius
Vendors

8. MulT-­‐Million
Dollar
Verdicts
and
Se[lements
in
ConstrucTon
Defect
LiTgaTon

9. A
New
FronTer

10. 12
years
of
se[lements
&
verdicts
$39.5M
Construction defect, foundation, moisture intrusion settlement (226 units)
$26.4M Moisture intrusion, shear wall, sound transmission, structural fill
defect settlement (65 residential and 16 commercial) condo owners
$32.5M
Product liability settlements (12,000 homes) with defective windows
$26M Building envelope, roof, drainage, and window product (200 residential, 4
commercial)
$25M Structural defect and moisture intrusion lawsuit (86 units)
$24.3M Moisture intrusion, expansive soil, construction defect settlement
(320 units)
$18M Moisture intrusion, construction defect settlement (56 units)

11. 12
years
of
se[lements
&
verdicts
$17M
Building envelope, grading and drainage, concrete, roof, and window
product (259 units)
$13M Leaking siding and artificial stone veneer, expansive soil, construction defect
(282 units)
$12M Construction defect (104 units)
$12M Structural defect and moisture barrier (98 units)
$11.7M Construction defect (84 units)
$11.7M Negligent construction, negligent misrepresentation, breach of implied
warranty, breach of fiduciary duty claims, moisture intrusion, and other
construction defect claims
$10M Windows, brick veneer, balconies, and roof (265 units)

12. 12
years
of
se[lements
&
verdicts
$8.8M Flooring system defect settlement (30 homes)
$8.3M Defective building envelope, window installation, drainage, structural
support (206 units)
$7.5M Construction defect (24 units)
$7.35M Construction defect and faulty windows (57 units)
$6.85M Construction defect settlement (136 units)
$6.2M Jury verdict and judgment – dipping bedrock (undisclosed number
of units)
$6.1M Bad stucco, construction defect (126 single family homes)
$5.3M Moisture envelope, EFIS, structural defect settlement (48 units)

13. FoundaTon
failures
• Expansive
soils
• Hydro-­‐collapsible
soils
• Slope
failures
• Improper
compacTon

14. Life,
health,
safety
issues

15. Water
infiltraTon
• EIFS/Stucco
• Flashing
errors
• Window
product
failures
• Mulled
windows
• Leaking
• CondensaTon

16. Grading
and
drainage
• Improper
grading
adjacent
to
structure
• Failure
to
design
for
50-­‐100
year
storm
criteria
• Perimeter
drain
installaTon
errors

17. Exterior
cladding
failures
• Fiber
cement
siding
• EIFS
• DAFS
• Stucco

18. Untapped potential

19. • Problems
jurors
can
touch,
see
and
understand.
“WOW”
factor

20. Jurors
idenTfy
with
homeowners
in
CD
cases
• Largest
single
investment
most
people
make
• Developers
have
a
poor
reputaTon
in
the
community

21. Complex
liTgaTon
• These
cases
are
not
for
the
novice
• Builders,
developers,
and
insurance
companies
strategize
to
win

22. Typical
cost
burden
Cost
advance
Two
years
to
Specific
skill

23. Heavy
resource
commitment
Challenging
legal
issues:
Proof
-­‐
ExtrapolaTon
Economic
Loss
Rule
Statues
of
LimitaTon
&
Repose
Standing
issues
Insurance
coverage
issues
Avoiding
arbitraTon
Adhesion
contracts
-­‐
waivers

24. We
wrote
the
book
on
construcTon
defect
cases

25. Create
a
successful
CD
case
template

26. How
do
you
get
these
cases?
Who
do
you
know?
–
MulT-­‐family
complexes
–
Condos
–
Townhomes
–
Commercial
structures

27. PlainTffs
construcTon
defect
case
success
rate
100%

29. Thank
you
Kerry
N.
Jardine,
Esq.
Managing
Shareholder