The Use of Statutes of Repose in Setting Record Retention and Insurance Maintenance Policies – A Difficult, but Necessary, Endeavor
In Claims onRead moreWhile engineers often use the terms “statute of limitations” and “statute of repose” interchangeably, the distinction between the two terms is of pivotal importance in understanding not only how long documents should be retained, but also in determining how long an engineer should retain insurance coverage and/or how far back the insured engineer’s retroactive date needs to be to ensure that it is covered for…
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Claims Retrospective: Designs Based on the Assumption that Certain Permits/Approvals Will Be Waived or Not Required
In Claims onRead moreDesign professionals will occasionally create designs, plans, and/or drawings (collectively, referred to herein as “designs”) with the assumption that its designs will not need to be submitted or approved to the agencies normally required. For example, we have recently received multiple claims in relation to projects where the design professionals have tried to avoid the need to obtain approval or a permit from the California…
How Engineers Can Inadvertently Extend Their Liability
In Claims onRead moreMost engineers understand that if they commit errors or omissions that result in damages, they may face claims from their clients. However, engineers are often surprised to find they may have duties to and be held liable to other parties besides their clients.
Settlement Agreements – Get Them in Writing
In Claims onRead moreIt’s often beneficial for the parties of a dispute to consider an early resolution via compromise. Settlements can offer a mechanism for a cost-efficient resolution, the preservation of business relationships, and peace of mind. Accordingly, it’s not unusual for design professionals to pursue settlements prior to litigation or even during litigation.
An Injured Party’s Carrier Paid the Loss – Are You Off the Hook?
In Claims onRead moreConsider the following scenario: your design error has caused damage to the person or property of another, and you are rightfully concerned about a possible claim against you. However, you later discover that the injured person or property owner has been fully compensated for their loss by their own insurer. Are you off the hook?
Claims Retrospective: Trust but Verify – Relying on Client-Provided Information Can Lead to Claims
In Claims onRead moreBusiness is booming. Engineers and surveyors across the country are working longer hours to try to meet the greater demand for services. While this is great news for job security and profits, many engineers and surveyors are struggling to keep up with the demand and to keep clients satisfied. There is certainly temptation to rely on convenient sources for information that would usually be obtained…
Improper or Incomplete Construction Observation Services Can Give Rise to Fraud Claims
In Claims onRead moreMost design professionals do their best to avoid professional liability claims as a matter of course. However, even the most careful design professional may find themself a defendant in civil litigation where the quality of their work is being questioned. The most common claims pursued against design professionals are for breach of contract and negligence/professional negligence.
Not Being Paid – Suspension as a Possible Alternative to Termination
In Engineers onRead moreMost design professionals, including professional engineers, have been in a situation where their client has stopped paying their invoices for any number of reasons, whether it be insolvency, a lack of financing, a dispute over the quality or quantity of services, or some other reason. Many smart design professionals anticipate the possibility of nonpayment and include clauses in their contracts that allows the design professional…
Claims Retrospective: What is a Claim under a Professional Liability Insurance Policy?
In Claims onRead moreSome insured engineers continue to express confusion regarding what a claim is under a professional liability insurance policy. Typically, the confusion is the result of one of two scenarios. Either the insured engineer does not understand the difference between a first party insurance policy and a third-party insurance policy, or the insured engineer mistakenly believes that a claim can never occur until a lawsuit or…
Arbitration vs. Litigation
In Engineers onRead moreThe shutdowns and delays caused by the COVID-19 pandemic have significantly increased the backlogs in civil courts across the country, leading to an even longer period between when a case is filed and when it proceeds to trial. Given such delays, parties may be tempted to revisit binding arbitration as a quicker route to resolution than civil litigation. However, prior to determining whether to engage…
