Three of the four valuation disciplines our firm offers, have potential for litigation consulting and expert testimony. Based on her experience and extensive work in construction, cost estimating, and valuation, Patricia Staebler has developed solid knowledge to serve as expert for insurance appraisals, FEMA appraisal, and reserve studies.
Here are some examples of disputes our firm has consulted for:
Insurance Appraisals:
The carports of a condominium association were undervalued by a valuation service company. After a tornado damaged the carports substantially, the association’s insurance carrier paid out just a small portion of the true repair cost. Because the structures were undervalued, the co-insurance penalty was invoked. The difference between actual replacement value and the value which was determined is the subject of the lawsuit. We provided a second opinion appraisal, review of the original valuation, review of the insurance adjuster’s opinion, and expert testimony.
Undervaluation of structures is a common problem in the insurance industry and our firm consults with property owners, insurance agents, and litigators on a constant basis.
I was given Ms. Staebler’s name a few years ago for an insurance appraisal, and I’m very glad I was! Since that time, she has done numerous insurance appraisals for us – from simple to extremely complex – as well as building reserve studies. Most recently, however, she served as our expert witness in litigation that we successfully prosecuted. She was extremely helpful in both her analysis and consulting services, coordinated well with our attorney, and her confident and capable testimony was instrumental in convincing the judge of our approach. In fact, the ruling in our favor specifically highlighted Ms. Staebler’s testimony. She is always a pleasure to work with – professional, quick replies, and pinpoint detail. I would highly recommend her!
Mindy Kauffman, Red Property Management LLC, Sarasota, FL
50% FEMA Rule Appraisals:
In this discipline our firm represents either the property owner or the building department of a municipality. Most cases involve a second opinion appraisal, review of other appraisers’ work, consulting and expert testimony.
A property owner started demolition of the interior built-out of his home with the intention of extensive remodeling. The building department put a stop-work order on the property due to missing permits. To be able to receive a permit the property owner will need a 50% FEMA Rule Appraisal, which in this case will have to be retrospective (before the demolition started). We have consulted on several cases like this which usually can be resolved without litigation.
A property owner sued the city for not allowing substantial repair after a hurricane damaged his building. The city’s building department determined that the building was damaged more than 50% of its depreciated value and therefore would have to be elevated and cannot be substantially rehabbed without the proper elevation. Our firm assisted the city to prove in court that the 50% FEMA Rule determination of the building department was correct.
Patricia Staebler has been doing our reserve study since the association was formed, she has done a complete and thorough evaluation and done so in a timely manner. We have another being done this year and we will again use Patricia. Additionally, Patricia has been instrumental in providing documentation for a legal matter the association is currently involved in.
Mark Charalambous, Castle Group, Longboat Key, FL
Reserve Studies:
Reserve studies are used in the condominium and HOA world and determine the funds which need to be saved by a community on an annual basis to have sufficient monies in place to pay for major replacement of building components such as roofs, exterior paint, etc.
A recent case involves a condominium building with construction defects. In the grand scheme of things, the lawyer for the association investigates not only the construction defects but goes a step further to evaluate if the developer established the correct amount of reserves upon turnover to the association. For that purpose, we provided a retrospective reserve study and will further consult and assist as expert witness.
Another case involves the dispute between a commercial property owner and a condominium association which is part of a mixed use building. A lot of cities in Florida have downtown high-rise buildings with retail, restaurant, office, parking garage, amenity decks and a condominium “in the sky”, usually the upper floors of such high-rises. In this case we assisted with a reserve study and the calculation of the square foot ratio the condominium association occupies and owes reserve assessments and maintenance fees to the commercial building owner. We further assisted with litigation consulting and expert witness services.
These are just a couple of examples but will give the interested reader an idea, what we can do for a legal professional and/or the client.
For more information please contact our office or reach Patricia direct at 941.705.0123.
