Nevada Subcontractors Association
Tackles Construction Defect Issue
by Joe Wheeler
From The Construction Zone: June 2000
The Nevada Subcontractors Association, a trade association dedicated to battling unfair construction defect lawsuits, held a membership meeting in May.
The room was jammed with owners of companies, many of them life long contractors united by a single, shared experience: They had been unfairly sued for defects and felt victimized by the system.
--A plumber can't find insurance, not because he's actually done anything wrong, but because he builds residential housing and no one wants to cover him;
--A roofer, juggling 47 suits at once, said that the system is geared to make the contractor pay even when there’s nothing wrong with the work;
--A framing contractor nearing retirement has worked hard his entire life and now stands to lose it all because somebody wants something for nothing;
–An electrical contractor described how he’s gone out of his way to work with homeowners to resolve issues and still ends up being sued.
NSA President Leo Durant described the association’s work with legislators as being an education for lawmakers who thought the problem with construction defects had been solved last session with the passage of SB 32. The law, which is meant to guide homeowners and builders toward arbitration, has been hijacked by trial lawyers eager to force a settlement.
Defect attorneys use a provision that allows a case to leapfrog arbitration based on a threat to health or safety. Since the passage of SB 32, most suits filed have featured such "threats," and therefore have gone straight into litigation with no chance at arbitration. "Every legislator we talk to is astonished that there is still a problem with construction defects," Durant said.
The NSA’s primary goal is to create a workable solution to the defect issue that protects both homeowners and contractors.
Attorneys R. Scott Rasmussen and Rick Storms addressed the issue of recent Supreme Court and Federal Court defect cases and how they affect subcontractors. Lobbyist Jack Vergiels spoke of the NSA’s efforts to work with lawmakers on correcting a legal system that punishes the contractor and NSA Legislative Chairman Len Nevin reported that the NSA is ready to endorse candidates for office.
The association can be reached by calling (702) 798-5156.
NSA Features Top Attorneys and Lobbyists
The Nevada Subcontractors Association has put together an impressive team of attorneys and lobbyists to fight frivolous construction defects lawsuits and unfairness in the current legal system.
Las Vegas construction defect defense attorney R. Scott Rasmussen is with Thorndal, Armstrong, Delk, Balkenbrush & Eisinger, and remembers the day he first starting defending contractors for construction defects.
"I was in my office and a partner came in with a file and said, ‘Do you know anything about construction?’" Rasmussen recalled. "I said, ‘Yes, I worked for a contractor when I was younger. He handed me the file and said, ‘See what you can do with this.’"
That case was Rasmussen’s entry into the field of construction defects.
Since that time, he has learned how to really fight for his clients. He noted a recent settlement in which he defended a sub who had done 75 percent of the work while an out of state law firm represented the sub who had done the other 25 percent.
"I walked the site with the contractor, got estimates to repair, and had expert witnesses’ statements," Rasmussen said. "The firm that represented the sub who did only 25 percent paid $25,000. My guy, who had done most of the work, settled for only $12,000."
The key to bringing settlements down, according to Rasmussen, is doing the homework. Contractor involvement is also crucial. ‘The more the contractor is involved with the case, the lower the settlement is going to be," Rasmussen said. As counsel for the Nevada Subcontractors Association, he advises the board on legal issues.
San Diego attorney Rick Storms has been defending contractors for 23 years. He periodically visits Las Vegas to confer with members of the NSA and speak on developments in California that pertain to Nevada.
NSA Lobbyist Jack Vergiels advises the board on the candidate selection process. Vergiels served in the Nevada Assembly for 12 years and held the positions of Majority Whip, Assistant Majority leader, Majority Leader and Speaker. He also served in the Senate for eight years and held the positions of Majority and Minority leader, and served as Chairman of the Senate Commerce Committee.
Len Nevin serves as Chairman of the NSA’s Legislative Committee. Nevin was a police officer in Reno for 23 years and served 12 years in the Nevada State Senate and Assembly. He served on the Senate Commerce and Labor Committee and Senate Governmental Affairs Committee. Levin is currently safety director for Interstate Plumbing & Air Conditioning.
Call (702) 615-7644