What happens when a lawyer who spent 15 years defending builders against construction defect claims — learning exactly how insurance companies calculate risk, what motivates adjusters to settle, and what plaintiff firms do that make cases harder to resolve — wakes up one morning after pulling an all-nighter to write ten motions, taking a deposition, and driving straight to the courthouse without sleeping, only to get grilled by an insurance rep about a plan detail that didn't matter, and decides that maybe the homeowners with leaking balconies are actually the good guys?

In this episode of the Trustcast Show, Zane Myers speaks with Mike Kennedy, construction defect attorney at Berding Weil, about how an HOA knows whether water intrusion is a maintenance problem or a construction defect the builder has to pay for, what the 10-year statute of limitations in California actually means and how to find when your clock started, and why letting the builder come out and do repairs does not close your claim unless a new California bill passes that the building industry drafted to do exactly that. Mike explains the forensic investigation process — walking the property, homeowner questionnaires, destructive testing — and how a case that started with rusting fire pit igniters and canvas awnings in South Orange County turned into an eight-figure claim once the balcony leaks and slope movement were uncovered.

They also discuss what happens when the builder has gone out of business and the only path to recovery runs through the subcontractors, why filing with the HOA's own insurance is almost never the right answer and can make the affordability crisis worse, how the contingency fee structure means HOAs typically spend nothing out of pocket, the war story about settling a $700,000 case for $300,000 and somehow getting in trouble with the insurance company for it, and what his internal reaction is the moment a defense lawyer opens with a lowball number — he skips the counter and goes straight to trial.

Mike Kennedy is a construction defect attorney at Berding Weil representing HOAs and building owners in California.

Connect with Mike Kennedy:

LinkedIn: Mike Kennedy

California State Bar searchable at calbar.ca.gov

Chapters

00:00 Introduction to Mike Kennedy

00:34 The moment he realized he was on the wrong side — the all-nighter, the deposition, and the insurance rep

01:45 Waking up and deciding the property owners are the good guys

02:22 Growing up in Mission Viejo watching the builders cover everything and developing a vague resentment

03:52 First job out of law school on the defense side — student loans and the first best offer

04:16 An HOA president just found water intrusion in three units — how do you know if it's a defect or maintenance

05:43 The 10-year statute of limitations — and how to find when your clock actually started

06:25 City inspection sign-offs — does city approval mean anything in a defect claim

07:39 The builder already did some repairs — does that close the claim

08:17 The pending California legislation the building industry drafted to cut off claims after repairs

09:38 Becoming an involuntary lobbyist — working with trade groups in Sacramento on HOA legislation

10:44 How 15 years on the defense side gives insight into what motivates insurance carriers to settle

11:50 The war story — settling a $700,000 case for $300,000 and getting in trouble for it

14:30 How HOAs find a construction defect attorney — usually through the community manager

15:05 The forensic investigation process — site walk, homeowner questionnaire, destructive testing

16:45 The case that started with fire pit igniters and canvas awnings and became eight figures

18:20 What to do when emergency repairs are needed but the builder has the right to repair

20:08 When the builder calls and says don't worry we'll fix it — should you let them

21:52 Should the HOA file with their own insurance — and why that almost never makes sense

23:08 What happens when the builder has gone under and has no active policy

24:55 How much is this going to cost us — the contingency fee model explained

26:15 How to stretch the settlement across priorities and sometimes have money left over

27:05 The South Orange County eight-figure case from start to finish

30:02 Town halls every 90 days, coffee and donuts on Saturday mornings, and what you can and cannot say in public

31:15 When does a construction defect case go to trial versus arbitration

32:36 The four-week jury trial defending the repair contractor — and the defense verdict

33:36 Why juries key on something completely unrelated and how experienced trial lawyers account for that

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