"HELP- I GOT SUED! What to Do (& Not Do) If It Happens to You" by Elaine Matternas was recently published in Real Estate Valuation Magazine Online - Spring 2006.
The sheriff, process server, or maybe the mail carrier with a certified letter has just exited your office, leaving you with a thick sheaf of papers labeled: ABC Bank v. Mary Q. Appraiser.
What do you do next?
Here's a "summary" from the article . . . What NOT to Do!
Don't stuff the envelope in a drawer and hope that it will go away. It won't.
Don't take the sheaf of papers to the divorce attorney whose office is next door and ask him or her to respond for you. You need someone whose specialty is defending real estate appraiser errors & omissions claims defending you.
Don't take it upon yourself to call the claimant and explain to them that you have done nothing wrong.
Don't admit guilt or innocence.
Don't try to answer the lawsuit directly by yourself - what is called a pro se defense in legal terms.
Don't take the lawsuit personally.
Don't panic! The sky hasn't fallen and the world isn't coming to an end. Take a deep breath, gather your facts and files, and start on the "What You SHOULD Do" list.
What You SHOULD Do! Below are suggestions as to what you should do when a claim is made against you:
Note the date that the lawsuit was received, and the method of service (i.e.. certified mail, process server. etc.)
Keep a written record log of any additional communications received that relate to the legal action, by date and content of the contact.
Make a copy of the lawsuit for your records. If you are going to be helpful to the attorney who represents you, you will need to read the lawsuit carefully, to know and fully understand the charges against you.
Review your file for the appraisal in question, and have it ready to be used by the attorney in preparing for your defense. Read "Document, Document, Document! To Prevent An E&O Claim"
Submit the claim immediately. Run to the nearest post office or overnight mail delivery service and submit the claim to your Errors &Omissions insurance carrier
Carefully read and follow the terms and conditions of your F&O policy, usually found in the "Conditions" section and labeled "Duties in the Event of a Loss' or "Notice of Claim"
Cooperate and respond promptly to every request for information,documentation, and/or other details from the claims examiner or defense attorney. Be open and direct with them-after all, they are defending YOU and your work.There's More to Know - Be sure to read the FULL article - click here.
Claims Happen! An (E&O) claim is a fact of life as a professional that cannot be ignored. You can't pretend that it doesn't exist. You can't just wish it away. If you ever have any questions about the specific terms and conditions of your policy, you should contact your insurance agent and get proper advice. The purpose of your Errors& Omissions insurance policy is to protect you. Now, why would you want to go it alone? *)
Elaine Maternas is the author of numerous practical articles on insurance issues for real estate appraisal professionals. She over sees the Real Estate Appraiser Errors & Ommissions program for Intercorp, Inc., an insuranceprogram management firm headquartered in Ephrata, PA. For more information about Intercorp`s E&O program, please check their website at: http://www.intercorp.net/;email info@intercorpinc.net; or call 1-800-640-7601 .
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