Larry Carter

Larry Carter, JTS Communities Partner

JTS owners Larry Carter and Jack Sweigart coped with the lawsuit cost by forming a captive insurance company, an entity that insures and is controlled by its owners, according to the Sacramento Business Journal.
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Carter and Sweigart previously had solved a construction-defect liability problem in El Dorado Hills for a company they ran before founding JTS.

Larry Carter, JTS Communities (pdf)

"The plaintiffs' attorneys are all over us," said Larry Carter, JTS' co-owner.
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JTS, owned by Carter and Jack Sweigart, is Sacramento's ninth-largest homebuilder, based on its sales of 609 homes last year.

"The plaintiffs' attorneys are all over us," said Larry Carter, JTS' co-owner.
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JTS, owned by Carter and Jack Sweigart, is Sacramento's ninth-largest homebuilder, based on its sales of 609 homes last year.
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"Usually builders cross-complain against the subs, but we're taking full responsibility," Carter said.

Besides keeping the subcontractors' insurers out of settlement talks, he said, the tactic prevents any house-damaging testing done by plaintiffs' experts searching for defects.

Housing defects can trigger lawsuits for 10 years after construction.California law requires homeowners to give homebuilders a chance to fix problems before suing.The law took effect in January 2003 and is not retroactive.Consequently, the plaintiffs' attorneys primarily target homes built during the prior decade.

Carter and Sweigart coped with the cost by forming a captive insurance company, an entity that insures -- and is controlled by -- its owners.
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A year ago, Carter and Sweigart also started bypassing the plaintiffs' attorneys to contact homeowners.
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"We send mail to the plaintiffs and go door to door to anyone named in a lawsuit," Carter said.