This article was written with the assistance of AI and edited by Angela Sabarese.
In a recent CLM webinar, three construction defect professionals—Jackeline Rodriguez, Hamilton Miller Birthisel LLP; Meliz Martin, Lydecker LLP; and Steven Pace, Forensic Engineering Company—examined the complex landscape of building envelope failures and the litigation that follows.
The panel focused on why building envelopes are particularly vulnerable to defects, especially in regions like South Florida where rain and hurricanes expose structural weaknesses. Pace emphasized the scope of the problem, noting that "about 70% of litigation and insurance claims in construction are from the building envelope itself. They are systematic, they are not isolated mistakes."
Importance of Early Assessment
The discussion centered on several key themes: the importance of early expert involvement, proper documentation, strategic risk transfer, and multi-party coordination. Through two detailed case studies—a six-story condominium with balcony failures and a refrigerated warehouse with unexpected moisture issues—the panelists illustrated how initial assessments can evolve dramatically through investigation.
Expert-Driven Cases
Martin stressed the expert-driven nature of these cases, emphasizing the need to match expert qualifications to specific claims, whether involving architects, engineers, or various specialty contractors.
Allocating Responsibility
The panel also addressed the complexity of allocating responsibility among multiple parties. Rodriguez acknowledged the challenge: "In a perfect world, everyone would just agree that they were x percent at fault for whatever went wrong, but we don't see that."
Key takeaways included the importance of early and frequent tendering, assembling the right expert team, exploring early resolution opportunities, and maintaining clear communication among insurers, attorneys, and experts. Pace summarized: "The specifications define the duty and then industry standards define the reasonableness of what's going on. And then the documentation [often] determines the outcome."
The webinar underscored that successful management of building envelope defect claims requires strategic coordination, technical expertise, and case-specific approaches rather than one-size-fits-all solutions.