"Why Appraisers Get Sued"

[Mike Kennedy]

Why Appraisers Get Sued
by Philip G Spool, ASA

Why Appraisers Get Sued

 

[Terrel L. Shields]

Best statement... I had a very competent lawyer but she said IF we go to court we would hire an attorney who was very good at courtroom litigation. She was good enough to get it tossed in appeal after the suit was dismissed with prejudice in the lower courts.

• For a complaint filed against you by your state appraisal board, get an attorney who is very familiar with administrative law. For a lawsuit, get an attorney who is a good litigator.

 

[Elliott]

Spool says,

"Board Complaints
For a complaint filed against you by your state appraisal board, get an attorney who is very familiar with administrative law. For a lawsuit, get an attorney who is a good litigator. Having a good litigator representing you is more important than his/her familiarity with real estate law. Also, have the attorney obtain an appraiser expert witness who teaches appraisal courses, is knowledgeable about USPAP and has courtroom experience. An expert witness who is knowledgeable about USPAP, such as an AQB-certified USPAP instructor, but has little or no courtroom and/or classroom experience, would not be an effective expert witness. Why is classroom teaching experience important? Your expert witness has to educate the “trier of fact,” whether it is a jury or judge. If your expert witness is unable to explain the appraisal process, scope of work and how you did your research and applied appropriate methods and techniques in preparing your appraisal report, and the opposing expert witness is better at convincing the trier of fact, then no matter how correct your report is, your case becomes ineffective. "


Let me get this straight. You get a complaint, your suppose to hire an attorney and an expert witness. Minimum cost $5000, median cost $15,000, high end, $25,000. I went to a conference that had an attorney that did board complaints. He basically said there was no way to beat the administrative law process, because the State AG represents the board, judged by an administrative judge who works for the state. To not find in favor of the state is akin to hearsay. Your E&O, if they will stand by you, will expect you to roll over, take the fine, and get on with life.

 

[Terrel L. Shields]

He basically said there was no way to beat the administrative law process

You have a lousy state then. You can beat the board here and no hearing officer is present. There is an attorney (usually a junior one) who assists the board but they make the decision here, and a good administrative lawyer will cost $200+ per hour. In our state if the board goes against you, then you can go to a regular local judge in appeal. A high percent of those are won by the appraiser. Most appraisers who know they are wrong, fold before they appeal.

 

[Michael P Jacobs MAI]

How's Florida looking?