Friday, April 6, 2012

Appraiser Liability Prevention Resources

Listed below are 9 of the most popular written resources on READI's site www.readimember.org.  The materials contain analysis and information that cannot be found elsewhere on the internet or in print.  We are able to share more detailed information there than we can in a public setting, such as this blog, because access to READI's materials is limited to persons with a legitimate interest in READI's liability prevention mission.

Appraisers and appraisal firms insured by LIA www.liability.com have access to READI's resources.  Subject to approval, others may join READI for access to most resources by following the registration procedure explained on the site. READI is free for appraisers who fulfill the registration requirements.

1.  What is the Statute of Limitations for a Lawsuit Against an Appraiser in My State?
. . . the chart below identifies the relevant time period for a professional negligence claim against an appraiser in each state, provides the statutory basis for that time period, and indicates whether courts in that state will likely apply a “discovery rule” to a claim. . .

2.   FDIC Files First Lawsuit Against Commercial Appraiser in Current Crisis (the Full Story)
. . . This article is about the full story alleged by the FDIC in that lawsuit and a few important lessons that appraisers might take away from it.  . . . there are far-reaching liability prevention lessons for those appraisers who own or work in firms with multiple appraisers. . .
3.  An Update on FDIC Lawsuits Against Appraisers
. .  . The chart below shows where the unfortunate defendant appraisers and firms are located, when and where the cases were filed, and the identity of the failed lenders. . .
4.  Risk Alert: A Warning for AMCs About “E&O Tickets” Sold to Appraisers
. . . Appraisers and the AMCs they contract with are being put at risk by new “no frills” E&O insurance policies sold to appraisers as “E&O tickets.” The central problem is that these policies provide no coverage for most of the claims that appraisers are now facing. . .
5.  (Updated) Review of LandSafe Independent Contractor Agreement
. . . The documents we have reviewed for our appraisers consist of a 16-page “Appraisal Services Agreement,” a one-page “Schedule A – Service Level Agreement,” and a four-page “Schedule B – Information Security.” These are referred to below as the “Agreement.” . . .

6.  Review of StreetLinks Independent Contractor Agreement
. . . I believe that the StreetLinks Appraiser Agreement does not present the same level of liability risk and potential E&O insurance coverage issues raised by most other AMC contractor agreements . . ..  Specifically, the StreetLinks Appraiser Agreement does not contain . . .
7.  Whistleblower Trend Affecting AMCs and Lender Services Firms
. . . It’s not the Dodd-Frank Act, however, that AMCs or other lender services firms should worry most about with respect to whistleblower liability . . .. Firms in this industry need to worry more about the federal False Claims Act and its state law counterparts.
8.  16 Appraiser/AMC Statute of Limitations Cases
. . . Below we have provided short summaries and links to 16 different trial court and appellate decisions in various states considering statutes of limitations in lawsuits against appraisers and one AMC. . .
9.  How to Make Your Appraisal Statements and Limiting Conditions More Effective in Reducing Your Potential Liability Exposure (Full Article)
 . . . the factual story and legal analysis can help appraisers better understand how their statements and limiting conditions will be viewed when disputes arise and guide them on ways to make their chosen language easier to enforce. . .

Peter Christensen is an attorney who advises professionals and businesses about legal and regulatory issues concerning valuation and insurance.  He serves as general counsel to LIA Administrators & Insurance Services.  He can be reached at peter@appraiserlaw.com.