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Economic Loss Doctrine Bars Contractor Suit against Engineer

by Kent Holland | Dec 31, 2010 | Newsletter Article

The economic loss doctrine was enforced by the Supreme Court of Wyoming to bar a general contractor’s (GC) complaint against a project engineer with whom it lacked privity of contract. The GC had a contract was with a town to construct water and wastewater lines. The...

The Duty to Defend as part of Indemnity Agreement is Alive and Well in California: Don’t be fooled by Favorable Commentary on California SB 972

by Kent Holland | Dec 31, 2010 | duty to defend, Newsletter Article

With the signing into law of California Senate Bill SB 972, California amended Section 2782.8 of its Civil Code, thereby limiting the enforcement of indemnification clauses upon design professionals working for public agencies. Much positive hype and commentary has...

Agreeing to Pay Reasonable Attorneys Fees as Part of Indemnification May Create Uninsurable Loss

by Kent Holland | Dec 31, 2010 | indemnification clause, Newsletter Article

A question that is asked with increasing frequency is whether attorneys fees incurred pursuant to an indemnity clause are insurable where they are not incurred due to a duty to defend (i.e., paid on behalf of the indemnitee) but are instead paid after the litigation...

Expert Testimony Found Insufficient to Establish Standard of Care against Engineering Firm

by Kent Holland | Dec 31, 2010 | Newsletter Article, standard of care

Where a contractor filed suit alleging that an engineering firm was negligent in designing, engineering and surveying land where a group of homes were planned to be built, the trial court granted summary judgment for the engineer because expert testimony offered by...

Design Professionals Should not Agree to Defend Clients

by Kent Holland | Dec 15, 2010 | duty to defend, Newsletter Article

There is no common law duty of a consultant to defend its client against third party actions. That duty can only arise as a result of a contractually liability created through the indemnification clause of the contract. Since this is a contractual liability, it is...
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