Binding Arbitration Tips

 

  1. Prove your damages: It is good to have photos, video tapes, letters to your builder etc. You will however need professionals to evaluate and issue reports. Although my problems were obvious, my photos, videos and copies of the building codes simply were not enough. Some of my evidence (pictures) was thrown out, however much of it was used. The video tape I made of my house in a rain storm was something I could not have possibly faked, so it was good evidence. If you plan to use your own photos, get enough in the photo to show it is your house. Also reports alone are not enough. You need the professional at the arbitration so the other side can cross examine them. Make sure the professionals you use are licensed and have adequate credentials. One notation is that help from your local government is free. This would be building inspections and the state Health Department. Sometimes it is hard to get them to cooperate if they messed up the inspection.
     
  2. Select an attorney for an arbitrator: For the arbitrator selection, you will receive a stack of resumes. For builder arbitrations, you will receive resumes from Engineers, Builders, Attorneys and possibly real estate agents. I chose an engineer. My case was highly technical and I thought the engineer would be a best selection, however now I feel differently. I think an attorney may see damages beyond the to actual cost to repair. I also recommend selecting an arbitrator with a different profile from your builder. My arbitrator was about the same age, sex and race and also did not live far from my builder.
     
  3. Show only quantifiable damages: In my exhibit book, I had estimates to repair and the cost of professionals. These were in my spreadsheet of damages. I also had in my spreadsheet of damages "pain and suffering" line items. These were items such as my the threat of my neighbor filing a lawsuit and the county considering condemning my house. I feel these are real, but they should have been saved for my closing statement. The arbitrators first statement was "This ain't no lottery". At that time I realized I only hurt myself by mentioning them in my claim. I should have had no documentation. My recommendation is don't mention or document these items, however, If the arbitrator seems sympathetic to you the homeowner, you can always mention them in your closing statement. It's best to get a feel for the arbitrator before bringing up such items. Non-quantifiable damages don't need documentation any way.
     
  4. Audio record your hearing call: You will have a telephone call to set the arbitration date. I had several questions about how the arbitration process works. One was how long could my opening statement be. I was told by the arbitrator as long as I want. I was told I could present all my evidence in my opening statement since I was representing myself. At arbitration, the arbitrator gave me only 5 minutes. This trashed my whole plan and threw me of course from the beginning. Because of this, I was not able to present much of my evidence. There were several other things discussed in the call that were contrary during the arbitration. If I had it to do again, I would have recorded it, brought it to arbitration and played it back. If you can't record the hearing call, have your claim manager document the important point. Your claim manager will send out a meeting notes document. It really only has the arbitration date. During the call have your claim manager make a note of any important points.
     
  5. Consider contacting your mortgage company for help: You mortgage company has at least as much interest in your house as you do. Being they technically own your home, they don't want your house to have major defects. My security deed with SunTrust discusses SunTrust providing an attorney to protect the house and specifically addresses building code violations. It also says that the attorney fees will be added to you debt. The reason I did not was the concern of attorney fees and the fact my builder might be judgment proof. In the future I would contact my mortgage company. If I had, I would have gone to arbitration with an attorney. I did it alone, but don't want to ever do it alone again.
     
  6. Organize your exhibits/documents well: Having your document book well organized will keep you on track and impress the arbitrator. You never know, the arbitrator may take into account who was most well prepared.
     
  7. Read your state law as it pertains to arbitration: Your arbitration clause should reference the state law that governs arbitrations. You should read this and bring a copy to the arbitration.
     
  8. Keep in mind that you are very limited to speak: Keep in mind that if you have no attorney you have no one on your side to cross examine you. You will only get to speak openly at your opening and closing statements and in my arbitration, they had to be very short. You have to prove your point through the cross examining of your expert witnesses. For a very highly technical case, this is not much of a problem if well planned. I would also recommend getting your point across when you cross examine your builder. Ask him questions like "Why did you not come out to my house after receiving these letters ? "
     
  9. Get a good book on arbitration:
     
 

 

 

 

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