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Burnside Property & Project Claims
FIDUCIARY NOTE

When a trustee or receiver should bring in special insurance or construction counsel

The claim may be valuable even when the estate cannot justify hourly litigation.

Best First Step

Start with a short, non-confidential summary if this issue matches what you are dealing with. If the matter appears large enough to justify focused counsel, you will get a direct initial read and a clear next step.

Fiduciary-controlled claim review, screening, and briefing materials
Useful when a fiduciary-controlled matter needs fast screening and a commercially disciplined claim role.
Real-estate-trained
M.S. in Real Estate from the University of Colorado Boulder.
Ranked first in class.
Construction pricing background
Background includes work as a construction cost estimator.
Useful when repair scope, reconstruction timing, and cost consequences all matter at once.
Press
Press includes MoneyGeek, The Mortgage Reports, Construction Dive, and “Avoiding Legal Pitfalls.”
Knowledge Center
Construction and insurance articles give owners, advisors, and referral partners practical guidance on active disputes.

The guidance here comes from the same construction, insurance, and property-dispute practice described throughout the firm's work.

Next Step

Get a direct initial read on the issue.

If this issue matches what you are dealing with, start with a short, non-confidential summary. For qualifying serious matters, contingency may be available once the claim and economics are assessed.

Look first at economic weight

Not every asset problem justifies special counsel. The first question is whether the claim is large enough to matter after accounting for uncertainty, timing, and the likely path to recovery.

That means looking at the practical stakes: claim size, asset value, project exposure, likely coverage or collectability, and whether recovery could materially affect the estate or receivership.

Then look at the funding mismatch

Many strong claims sit inside structures that cannot justify years of hourly litigation. The estate may be cash-poor even when the claim is economically important. That does not mean the claim should be ignored. It means the structure of the engagement matters.

A contingency-only, costs-advanced model can be attractive when the claim is real, the potential recovery is meaningful, and the fiduciary wants a fast read without opening a new hourly drain.

Timing pressure matters

Claims do not wait for perfect case administration. A trustee or receiver may step into a matter after the record has already started to harden. Insurance narratives may already be forming. Project participants may already be defending themselves. Key communications and consultants may already be drifting away.

That is why the first question is often not “can we prove everything now?” It is “is this a claim whose value gets harder to preserve if no one owns it now?”

Define the role narrowly

The cleanest fiduciary engagements usually have a narrow role. Special counsel is not trustee counsel or receiver counsel. The role is the claim itself: insurance, defect, delay, rent loss, or another focused recovery dispute. That keeps the engagement manageable and lets estate or receivership counsel stay in their existing roles.

Gather enough to make a real decision

A full file is not necessary for an initial read. Usually the right first materials are a concise factual summary, the key claim documents, any core contract or policy, the current consultant or repair view, and the basic economic picture. A quick, commercially grounded initial read is often more valuable than waiting for perfect file assembly.

When focused special counsel often makes sense

Focused special counsel often makes sense when the fiduciary can see a potentially valuable claim but does not want the estate or receivership to absorb open-ended hourly spend before deciding whether the issue is worth pursuing. That is especially true when timing matters, the claim is tied to a materially exposed asset or project, and the record is still shapeable.

About Kelly McCann

Why owners, fiduciaries, and referral counsel call Burnside.

Kelly McCann’s background combines finance training, construction cost-estimating work, legal training, and graduate real-estate study. He has recovered millions of dollars for property owners through trial, arbitration, and settlement.

Finance degree from the University of Montana.
Worked as a construction cost estimator before law practice.
J.D. from the University of Montana School of Law.
CALI Award for Academic Excellence.
M.S. in Real Estate from the University of Colorado Boulder.
Ranked first in his class in the M.S. in Real Estate program.
Illustrative Scenario

Illustrative fiduciary scenario where claim value is at risk of drifting

A cash-constrained structure may still control a meaningful claim while the record continues to harden.

Useful when a trustee, receiver, or similar decision-maker needs a narrow read on whether the issue is worth preserving and how to keep it commercially coherent.

Early claim mapping matters most when nobody has yet taken ownership of the recovery story.

Illustrative scenarios are shown in summary form only. They are not client descriptions and do not guarantee outcomes.

Next Step

Discuss this kind of dispute before the record hardens.

If when a trustee or receiver should bring in special insurance or construction counsel describes the dispute you are dealing with, a short, non-confidential summary is usually enough to start the conversation.