|
Inside this issue:
Green and Sustainable Design: Part 1: Professional Liability Risk and Insurability Issues for Design Professionals
By David J. Hatem, PC
This paper will identify and discuss professional liability risk and insurability issues for design
professionals associated with green and sustainable (“G/S”) design. There are many published articles that address
the background and benefi ts of G/S design and the reasons for its increasing prevalence and popularity. There are other
articles that anticipate the legal theories upon which claims may be asserted against design professionals in the G/S
design context. This paper, in contrast to those articles, will focus on why potential professional liability risk in G/S design, as well as the associated professional liability insurance concerns, are so signifi cant for design professionals. The intent of this paper is not to discourage the G/S movement, but rather to contribute to the understanding of the associated professional liability risk, and to lay the foundation for Part II of this paper which will set forth risk management and contractual recommendations for design professionals to manage that risk and maximize the availability of professional liability insurance for claims associated with G/S design.
New Rhode Island Legislation Proposes to Alter Retention Process for A/E Firms on Public Projects
By Brian C. Newberry, Esq.
The Rhode Island General Assembly is poised to enact legislation that would change the manner
in which architectural and engineering fi rms could be retained on public projects. House Bill 8103 sponsored by
Representative Walsh (D. Charlestown) modifi es the existing statute § 37-2-59.1 relating to the selection of professionals
based on place of business located in Rhode Island.
Indemnifi cation—A Contractual Sword and Shield: Tips on How to Enter Into Contracts Which Leave Design Professionals Well Armed and Well Protected
By Peter C. Lenart, Esq.
Indemnification is a legal term which design professionals are generally familiar with but it is also a
term which causes confusion, and sometimes results in bad contracts for the unwary. In plain terms, indemnifi cation is an
agreement to be responsible for the liability, such as errors and omissions, of another party. Indemnifi cation clauses appear
in owner-design professional contracts, and frequently in design professional-sub-consultant contracts. These clauses
should be read and understood fully. If they are unclear in any way, a design professional should seek the advice of an attorney.
Illinois Court Expands Engineer’s Duty of Care Beyond
the Terms of the Applicable Contract
By Lynn M. Squillace, Esq.
The Illinois Appellate Court recently held that an engineer’s duty of care may extend beyond the
scope of the terms of the applicable contract to include a duty to recognize and address potentially unsafe conditions,
when the contract at issue calls for the “degree of skill and diligence normally employed by professional engineers or
consultants performing the same or similar services.” Thompson v. Gordon, el al., 2009 WL 3969619 (Ill. App. 2 Dist.
2009).
The Economic Loss Doctrine Bars an Owner from Asserting
Negligence Claims Against a Design Professional with Whom the Owner is in Privity of Contract
By Kristina S. Raevska, Esq.
In a recent decision, the Supreme Court of Arizona extended the application of the
economic loss doctrine to construction defect cases, holding that a property owner/client is limited to its contractual remedies
when its architect’s negligent design causes economic loss but no physical injury to persons or other property.
|
