High Court Allows Property Owner to Sue Engineering Firm for $1.5M in Lost Profits

In a recent 5-4 decision, the Washington Supreme Court cast doubt on a company’s ability to limit its liability for economic losses arising out of a contract dispute. The court allowed a property owner to sue an engineering firm for lost profits even though the parties’ contract barred such recovery.

As a result of this decision, engineering, architectural, construction, and other professional service companies may now face damage claims they thought they were contractually protected against. This area of law continues to evolve. In the interim, businesses can take some steps in an attempt to protect themselves from negligence claims.

Published in the Seattle Daily Journal of Commerce, February 21, 2014.

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For more information, contact James H. Wendell.