Negligent Misrepresentation Claim Cannot be made against Engineer Whose Design and Construction of Sludge Processing Equipment Failed to Generate as Much Electricity as Engineer Represented Would be Created
ConstructionRisk.com Report Vol. #14, Issue #3
See article in the following topic indices:
Misrepresentation,Negligent Misrepresentation
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An engineer who was retained by its client to design and construct anaerobic digesters to process cattle manure and paper sludge was sued by its client when the system failed to process the amount of sludge and produce the amount of electricity per day that engineer represented would be produced, and on which the client [...]
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Accord and Satisfaction Barred Contractor Claim for Additional Compensation
Accord and Satisfaction,Federal Government Contracts,Misrepresentation,Waiver and Release
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Where a contractor timely completed a construction contract for the U.S. Army Corps of Engineers and accepted payment which included changes required by the Corps, the contractor was barred from later filing a claim for additional compensation. The claim was barred by accord and satisfaction because when signing change orders the contractor did not reserve [...]
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Contractors May Bring Action for Economic Losses Against Design Professionals in Pennsylvania
Contractor Claims against Design Professionals,Economic Loss Doctrine,Misrepresentation
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By: Andrew B. Cohn, Esq. A very recent Pennsylvania Supreme Court opinion (January 2005) has significantly changed Pennsylvania law, allowing a general contractor to directly sue an architect in negligence for additional construction costs caused by defective plans, drawings, and specifications. Based on this decision, contractors working on Pennsylvania projects may now bring direct actions [...]
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No Warranty of Design
Fraud Allegations,Misrepresentation,Standard of Care,Warranties and Guarantees
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In response to a plaintiff’s suit against an engineer alleging breach of an express warranty, a court held that the complaint must be dismissed because the record revealed no express warranty, and if the service was performed negligently the cause of action must be based in negligence rather than warranty. The engineer had been retained [...]
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Contracts requiring a design-build engineering firm to supply “basic engineering packages” for licensing and technology transfer agreements for the design and construction of a processing plant for sodium hydroxide (caustic soda) contained a liquidated damages clause capping the engineer’s liability at 10 percent of its fee, and also contained a waiver of consequential damages clause [...]
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A court dismissed a developer’s suit for fraud, negligent misrepresentation, and breach of warranty against the design firm (A/E) that provided engineering and surveying services for the development of a residential community. The developer argued that the A/E was negligent in failing to perform various tests to determine the extent to which the land was [...]
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A homeowner (Northridge) retained an architectural firm (JWFA) to provide design and contract administration services for the renovation of a residential townhouse complex. Leaks were found in the roofs shortly after construction was completed. It was not until several years later, however, that Northridge sued JWFA and its employee, Thomas Driscoll. The defendants filed a [...]
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Contractor sues engineer for misrepresenting site conditions
Breach of Contract,Contractor Claims against Design Professionals,Differing Site Conditions,Economic Loss Doctrine,Individual Liability of A/E,Misrepresentation,Negligent Misrepresentation,Statute of Limitations
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Where a general contractor prepared its bid in reliance upon information provided by the project owner’s engineer, and the site conditions differed from what was represented, the contractor sued the engineer for misrepresenting the conditions. Both the contractor and the engineer had separate contracts with the owner and there was no contractual relationship between the [...]
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Contractor Suit against Project Owner’s Lender for Failing to Pay for Work Performed on Project is Dismissed
ConstructionRisk.com Report Vol. #12, Issue #12
See article in the following topic indices:
Breach of Contract,Lender,Misrepresentation,Payment Issues
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Where a contractor brought a claim against a project owner’s bank that was funding the project, based on allegations that the bank made promises to the contractor that funds were available and would be paid to the contractor to complete the project, summary judgment was granted in favor of the bank, with the finding no [...]
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Economic Loss Doctrine in Pennsylvania Bars Owner’s Negligence Claim against Designers and Construction Subcontractors
Economic Loss Doctrine,Misrepresentation,Negligence
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Where retaining walls for the foundation of a food distribution center began to evidence stress and potential failure, the building owner filed a suit against various design firms, contractors and subcontractors that had been involved in the design, inspection, testing and construction of the retaining walls – based on allegations of negligence. The U.S. District, [...]
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