Economic Loss Doctrine did not bar a Contractor’s Negligent Misrepresentation Claim against Architect Seeking Indemnity against Subcontractor Delay Claim

Where a subcontractor sued the prime contractor based in part on delay claims, the prime filed a third-party complaint against the project owner and the architect seeking indemnity. The court held that the architect owed the contractor a duty of care and that the...

Economic Loss Doctrine Does Not Bar Negligent Misrepresentation Claim against Design Professional

By: Kent Holland A professional negligent misrepresentation claim was filed against a professional environmental/geotechnical firm by the project developer that was its client. The suit sought to recover economic losses the developer incurred when it discovered that a...

Economic Loss Doctrine Bars Claim against Designer by a Third Party Seeking Purely Economic Losses

By J. Kent Holland, Jr., Esq. The Maryland Court of Appeals applied the economic loss doctrine to bar a claim against an engineer by a general contractor seeking to recover economic losses based upon reliance on allegedly defective designs. In the absence of...

Owner Allowed to Sue Design Subconsultant Despite Lack of Contractual Privity

Gail S. Kelley, J.D., P.E. ConstructionRisk, LLC In an effort to revitalize a waterfront area along Lake Michigan, the City of Whiting, Indiana hired an engineering firm to design a lakefront park and marina. The Engineer, in turn, hired a Subconsultant to serve as...

A Claim Under the Negligent Misrepresentation Exception to the Economic Loss Doctrine May Be Predicated on Implied Representations

This dispute concerned Pennsylvania’s application of the Economic Loss Doctrine and its interpretation of the exception allowed by Section 552 of the Restatement (Second) of Torts. Gongloff Contracting, L.L.C., (“Gongloff”) was a second-tier subcontractor on a...

Federal Court Holds Engineer May Be Liable to Contractor for Both Breach of Professional Duty and Negligent Misrepresentation

Kent Holland, J.D. ConstructionRisk, LLC The United States District Court for the Northern District of California held that an engineer who prepares documents that contractors will rely on when preparing their bids owes a duty of care to the contractors, and thus can...

Architect not Liable to Home Purchaser for Economic Losses Caused by Failed Sewage Disposal System that Architect Certified to Local Government as Meeting Permit Requirements

Kent Holland, J.D. ConstructionRisk, LLC Where a homeowner sued an architect for negligent misrepresentation and violation of the Consumer Protection Act (CPA) based on the fact that the architect prepared and submitted a certification to the local government as...

Court Bars Contractor’s Claim Against Commercial Paint Supplier for Negligent Misrepresentation Under Missouri’s ‘Economic Loss Doctrine’

James N. Rhodes, J.D. ConstructionRisk, LLC A painting contractor attempted to bring an action against a commercial paint supplier for losses because the supplier’s improper product recommendation caused the contractor to have to remove the paint and reperform the...

Property Owners Can Pursue Negligence Actions Against Contracted Engineer Under Washington State’s ‘Independent Duty Doctrine’ (Variation on ‘Economic Loss Rule’)

James N. Rhodes, J.D. ConstructionRisk, LLC The Supreme Court of Washington applied the state’s “independent duty doctrine” to allow a professional negligence and a negligent misrepresentation action to move forward by residential property owners against their...

Economic Loss Doctrine Does Not Apply to Negligent Misrepresentation Claims

Contractor asked the court to apply the economic loss doctrine to dismiss an action that alleged negligent misrepresentation concerning the contractor’s services to construct a pre-engineered building to serve as a personal and business location, and to do so in a...