ProNetwork News

It is not every day that a court throws a $10 million dollar lawsuit out of court on procedural grounds. Unfortunately, that’s what happened to a Northern California prime contractor. The Alameda Superior Court granted Defendant’s (the “City”) Summary Judgment Motion (the “Motion”) as to the Contractor’s First Amended Complaint, effectively terminating the Contractor’s $10 million dollar claim against the City.

Most people, and most professionals in particular, know what they should do. It is the stuff of aspirational New Year’s Resolutions and Twelve Step Plans. Yet even those readily acknowledged “right principles” often fall to the wayside of neglect and outright avoidance. The mind and heart acknowledge and are willing, but the follow through falters. Nowhere is this more true for the world of design and construction professionals than in the arena of written/unwritten contracts.

Professional liability insurance is a necessary business expense. The professional liability policy provides the design professional with a sense of financial security against errors and omissions. The policy also provides project owners and contractors with a level of comfort that a “deep pocket” will be available for any additional project costs caused by professional negligence. Too often project professionals, owners and contractors consider the purchase of the professional policy to be sufficient for ensuring negligence coverage.

For design professionals, finding the right insurance broker can present a challenge. You need someone with ample experience handling the professional liability needs of architects and engineers, and who offers a wealth of value-added services. Only if your broker has a comprehensive understanding of what you and your firm are all about can he or she be of real use to you. Lacking this knowledge can leave your firm vulnerable in a shifting insurance marketplace. A good specialist broker is committed to investing the necessary time and resources to your account. They find you the best coverage for the best price, and they save you the considerable time it would take for you to do so on your own.

Continued from the August 2016 issue of ProNetwork News including an analysis of Beacon Residential Community Association v. Skidmore, Owings & Merrill LLP, et al. and its impact on future court decisions. This newsletter includes the following important contract provisions: Indemnity, Waiver of Consequential Damages, Limitation of Liability, No Third-Party Beneficiaries, The Certification of Merit, and Provisions Requiring the Developer and Subsequent Owners to Include Maintenance Requirements and Manuals in CC&Rs and Purchase Agreements.