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Construction Claims Monthly - Devoted exclusively to the problems of construction contracting since 1963

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Construction Claims Monthly Special Report

Taking Direct Action Against Design Negligence (PDCCLSPECL)

Taking Direct Action Against Design Negligence
Table of Content
Author: Gilbert Kimberly
Length: 30 Pages

Taking Direct Action Against Design Negligence: Spotlight On Section 522 Of The Restatement (Second) Of Torts (2012) When suing for economic damages thanks to a disappointing project outcome, you must sue someone you have a contract with. That's the bare bones of the economic loss rule, and it often prevents contractors from going after project architects for professional negligence. However, by relying on Section 522 of the Restatement (Second) of Torts, some states have opened up a loophole. This special report illustrates the varied applications of the exception to the economic loss doctrine. The exception can be narrow, but knowing your options can make a big difference to your chances at cash recovery.

 

Here's a sample of the expert insight you'll find in this special report:

  • A contractor's mistake doesn't negate a designer's.
  • Damages recovery depends on the difference between a design and a construction defect.
  • Fraud allegations won't stick to a designer without intent to sabotage the project.
  • Courts don't recognize tortuous interference without evidence of bad faith.
  • Negligent misrepresentation claims permit recovery of reliance damages—not lost profits.
  • Design defect claims have luck in Arizona, Missouri, Mississippi, Texas and Florida.
 

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