Court Ruling May Expand Liability for Construction Professionals (CLM)

Court Ruling May Expand Liability for Construction Professionals

Thursday, January 30th, 2025 Liability Litigation Risk Management

A recent California Court of Appeal ruling could broaden liability exposure for construction professionals by expanding the scope of duty owed to property owners.

The case, Lynch v. Peter & Associates, involved a geotechnical engineering firm that inspected a residential footing trench for $360 at the request of a contractor. After the homeowner, Cheryl Lynch, experienced significant property damage due to foundation failure, she sued the firm for professional negligence—even though she had no direct contract with them. The court ruled that the firm owed her a duty of care, applying the Biakanja v. Irving factors to establish liability.

This decision sets a precedent that could increase the liability risk for engineers, surveyors, and other construction professionals, even when their contractual obligations are limited. It distinguishes construction-related negligence from cases involving pure economic loss, emphasizing the impact on physical property. Moving forward, professionals in California’s residential construction industry may face greater legal exposure to third-party claims.


External References & Further Reading
https://www.theclm.org/Magazine/articles/ruling-could-increase-liability-exposure-for-construction-professionals/3194
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