PNN_1409The closely watched California Supreme Court case of Beacon Residential Community Association v. Skidmore Owings and Merrill et. al. has been decided, and the opinion is bad news for California Architects.  The Court held that architects owe a duty of care to future homeowners in the design of residential buildings where the architect is a principal architect on the project, meaning that the architect is not a subordinate to other design professionals.

Case background and procedural history

As a refresher, this case involved the design and construction of residential units in the Bay Area of California. Originally held as apartments, the units were converted by one of the developers into condominium units. After completion, the condominium association filed a lawsuit against the original developers, contractors, and designers alleging a long list of construction and design defects. Among the issues was a complaint that the individual units did not include air conditioning and that the quality of the windows used was so deficient that the individual units experienced excessive heat gain, making them unlivable.

Skidmore Owings and Merrill (“SOM”) and HKS, Inc. (“HKS”) were the architects for the project. In reliance on past case law in California, SOM and HKS filed a motion in the trial court arguing that they did not owe any duty of care to the condominium association because neither SOM nor HKS had contracted with that entity. The trial court granted that motion. The intermediate appellate court reversed that ruling, holding that under other California law, SOM  and HKS  in fact did owe a duty to subsequent owners who were foreseeable even though SOM or HKS did not contract with them. This created an arguable conflict between cases, and thus the California Supreme Court accepted the case for resolution.

Our firm was privileged to file an amicus brief on behalf of the American Institute of Architects and the American Institute of Architects, California Council, arguing that architects should not be held to owe a duty to downstream owners with whom the architect did not contract. Continue reading “California Supreme Court Rules Against California’s Architects in the Beacon v. Skidmore Owings Case”

An expansive glass wall on the ground floor of the recently renovated TAT House opens onto a chic and spare outdoor living room. The third-floor of the house is wrapped in “an Ipe wood–framed rainscreen,” allowing “interior and exterior glass walls carry the sense of the outdoors throughout the interior.” We want to congratulate Santa Monica architecture firm fleetwood/fernandez on their beautiful design, as well as their clearly deserving win of Architect Magazine‘s top 2014 Annual Design Review Award.

fleetwood_fernandez

Visit Architect Magazine‘s original post for more photos, elevations, and renderings of this beautiful project.

Shout-out Credit:

Alicia K. Igram, AAI, VP & Branch Rep
Design & Consulting Liability Specialist
IOA Insurance Services – Aliso Viejo, CA
Email: Alicia.Igram@ioausa.com / Phone: 949-680-1789

Sometimes it’s difficult to sort through all the resources available to design professionals on the internet. We recommend you check out this series of eleven free videos from aecKnowledge, each one an interview with a respected architect in California’s Bay Area.

aecKnowledge Insights video series

Jack McAllister, FAIA

Throughout his long career, Jack McAllister has placed value on understanding how materials were fabricated and buildings constructed, and the importance of working directly with clients, allied design professionals, and the craftspeople building his creations. Above all, Jack learned the value of mentorship, as he describes so poignantly in this in-depth interview curated by Tim Culvahouse, FAIA.

Chuck Davis, FAIA

At age 78, Chuck remains a partner in EHDD, a fabled Bay Area architecture firm with a distinguished international reputation. In this candid interview, Chuck shares his insights about his early years with pioneer Joe Esherick, working with David Packard on the design of the Monterey Aquarium, his post-partum blues, collaborating with clients, the “search and discovery” that makes great architecture, and passing the torch to a new generation of leaders.

Peter Dodge, FAIA

Peter is a founding member of EHDD–one of America’s most distinguished architectural practices. A Fellow of the American Institute of Architects, Peter is the 2008 AIA California Council’s Lifetime Achievement Award. In this interview, he describes his circuitous path to architecture and talked about his contributions to the profession.

Visit the aecKnowledge website to watch these interviews. The following is a list of the rest of the interviewees:

  • George Homsey, FAIA
  • Odile Decq
  • Thom Mayne, FAIA
  • Gwynne Pugh, FAIA, ASCE
  • Steven Ehrlich, FAIA

The Architect 50

We love seeing our members’ design clients on any premier list of architects. Scrolling through the brand new 2014 ARCHITECT 50 list from Architect Magazine, we’re excited to see several familiar names, including Brooks + Scarpa Architects and Mark Cavagnero Associates.

Each year, Architect Magazine strives “to compile a list that recognizes firms small and large, who are making their mark beyond just their ability to run a financially lucrative business. This year, [they] added a few new data points, capturing information on how firms are helping their interns gain licensure, both through financial incentives and culture. And [they] asked firms to submit a portfolio with an energy-efficient project that best exemplified their commitment to sustainability.” Read more about the methodology behind the annual selection of the Top 50 here.

More detailed lists of the Top 50 in Design, Top 50 in Business, and Top 50 in Sustainability are available on the Architect Magazine website, too. Congratulations to all the winners!

We hope you’ve all been having a hot, sporty summer! In that vein, we’d like to congratulate an a/e ProNet client, Keisker & Wiggle Architects, Inc. The United States Tennis Association (USTA) recently named the Indian Wells Tennis Garden as its 2014 Featured Facility Award winner. Keisker & Wiggle, a Capistrano Beach, California firm, did the master plan and layout of the renovation for Stadiums One and Two.

Indian Wells Tennis Garden

In addition, Indian Wells Tennis Garden has been recognized as one of 12 winners of the USTA’s 33rd annual Outstanding Facility Awards Program, recognizing excellence in the construction and/or renovation of tennis facilities throughout the country.

Opened in March of 2000, Indian Wells Tennis Garden is home to the second-largest tennis stadium in the world, with the main stadium seating 16,100 fans and includes 44 stadium suites, broadcast and media facilities and an 8,000 square foot food commissary.

Representatives will be honored during the upcoming US Open at the USTA Awards Breakfast on Sept. 1, during the association’s Semi-annual Meeting. The award recognizes one facility from among all those that meet the criteria for an outstanding facility award. The “featured facility” exemplifies the highest level of excellence in facility design; court construction; court amenities; and other related components such as strong programming and implementation of 10 and Under Tennis.

“The Indian Wells Tennis Garden has embraced many of our initiatives, including youth tennis utilizing 36- and 60-foot courts, introducing thousands of new players to the sport each year,” said Kurt Kamperman, Chief Executive, Community Tennis, USTA. “It is outstanding tennis facilities like the Indian Wells Tennis Garden that help us grow the game at the grass-roots level, and for that reason and so much more, we are proud to recognize the Indian Wells Tennis Garden for its ongoing impact and contribution to the sport of tennis.”

Shout-out Credit:

Alicia K. Igram, AAI, VP & Branch Rep
Design & Consulting Liability Specialist
IOA Insurance Services – Aliso Viejo, CA
Email: Alicia.Igram@ioausa.com / Phone: 949-680-1789

wooden gavel and books on wooden table,on brown background

The following is an excerpt from a recent Gordon & Rees LLP article entitled California Supreme Court Holds Principal Architects Owe Duty of Care to Future Homeowners:

On July 3, the Supreme Court of California published its decision in Beacon Residential Community Assn. v. Skidmore, Owings & Merrill. In short, the court concluded that prime architects designing residential buildings owe a duty of care to future homeowners even though they do not actually build the projects themselves or exercise ultimate control over their construction.

Of importance, Beacon involved a demurrer at the trial court level meaning that, on appeal, the Supreme Court was required to accept the facts pled in the plaintiff’s amended complaint as true. This included the allegation that the Beacon project’s designers provided their services “knowing that the finished construction would be sold as condominiums.” It also was claimed that the defendants played an active role throughout the construction process, including coordinating efforts of the design and construction teams, conducting weekly site visits and inspections, recommending design revisions as needed, and monitoring compliance with design plans. For their various services, the designers were reportedly paid $5 million. The plaintiff alleged that negligent design work resulted in several defects, including extensive water infiltration, inadequate fire separations, excessive solar heat gain, structural cracks, and other safety hazards…

Although not a total loss for the design community, Beacon will have the effect of expanding architects and engineers (A&E) liability to a broader spectrum of claimants and generally keep A&E defendants in lawsuits for longer periods of time.

For an explanation of the court’s decision, including a concise summary of the affects of the ruling on Architects and Engineers, visit the original Gordon & Rees post by attorney Dion N. Cominos.

Complex precedents like this are just one of the reasons why A&Es are best served by consulting specialist brokers about their Professional Liability insurance needs. Does your current professional liability insurance policy include pre-claims assistance? How about the latitude to choose your own council in the event of of a claim? Call your local a/e ProNet Broker and get answers to these questions today.

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We’re especially proud of our partnership with the Society for Design Administration (SDA). Our members are well aware of the important role office administrators play in design firms, particularly when it comes to insurance matters. Today, we want to congratulate Penny Nelson, Director of Finance for Douglas Pancake Architects in Irvine, California, on passing the SDA Certified Design Firm Administrators exam! Ms. Nelson is the Orange County SDA’s Chapter President.

What is CDFA?

The SDA, the recognized leader in education for best practices in the A/E/C industry, offers a credential that recognizes your achieved administrative and management expertise, the Certified Design Firm Administrator (CDFA) designation. The CDFA credential is a voluntary certification designed to elevate the professional standards in design firm management and administration and contribute to the firm’s organizational growth and maturity through better practices in firm management. The credential comprised by the SDA’s Certification Program distinguishes and supports the roles performed by the spectrum of administrators and managers in the A/E/C firm. Furthermore, enhanced marketability and increased earning potential are just two of the many benefits CDFA certification provides.

CDFA certification recognizes an individual who has met a rigorous standard of experience and expertise in design firm management and administration and who has demonstrated their knowledge of the practice and related disciplines through a thorough examination of management and administrative competencies. This individual further adheres to the ethics and responsibilities of the profession as outlined in the SDA Code of Ethics.

Read more about the CDFA at the SDA’s website…

Last year,  we announced that a/e ProNet will pay one half of a new SDA member’s dues if that member’s insurance broker belongs to a/e ProNet… Chapters can partner with the local broker and reach out to principals and managers in their network. How about that for a good deal! Contact your local a/e ProNet broker today…

Shout-out Credit:

Alicia K. Igram, AAI, VP & Branch Rep
Design & Consulting Liability Specialist
IOA Insurance Services – Aliso Viejo, CA
Email: Alicia.Igram@ioausa.com / Phone: 949-680-1789

An Unfair Duty to Defend

pnn_unfairdutytodefendNo engineering project is without risk. Somewhere between the goal of designing the best bridge, building or water treatment facility and running a profitable business lurks the ever-present possibility of litigation. A legitimate disagreement can occur, a company can make a mistake, or a firm or government entity—or a member of the public—can file a lawsuit that forces the firm to defend itself and its work. “A lot of risks exist and they’re not necessarily related to the quality of the work performed,” says John Moossazadeh, a senior vice president at Kleinfelder in San Diego.

Engineering firms often take jobs that knowingly expose the firm to legal risk. But how much risk is too much?

That’s a question that more and more engineering and design firms are asking when confronted with contracts that contain controversial “Duty to Defend” language.

A contractual Duty to Defend provides that the engineering firm will pay for attorney’s fees and costs incurred in a client’s defense of a claim. Depending on the con-tract language and the governing jurisdiction, this duty may be immediate from the time the claim is made, and may exist regardless of whether the engineer is found to be negligent. Although basic indemnification and defense clauses are common, and they typically assign risk to the negligent party, a growing number of developers and agencies request—and, in some cases, demand—that the consultant or firm in charge of the project defend any suit or other legal action brought against the developer or owner, and sometimes even irrespective of whether the claim is related to the engineer’s services.

Duty to Defend provisions are therefore criticized because a consultant or engineer who signs such an agreement could be legally required to bear the cost of defending against any project-related claim, even when the claim has nothing to do with the services performed by the firm, and there’s zero evidence of negligence. “It forces engineers to take responsibility for far more than the work they’re being paid to do and what their insurance covers,” explains P. Douglas Folk, principal at Folk & Associates in Phoenix. Continue reading “An Unfair Duty to Defend”