Court affirms that "mixing concrete, like baking a cake, is fraught with problems when the recipe is not followed"
LOS ANGELES, Jan. 21, 2015 (GLOBE NEWSWIRE) -- Morris Polich & Purdy LLP is pleased to announce that on January 8, 2015, the firm was successful in securing the first published California Court of Appeal opinion holding that the economic loss rule applies to claims against design professionals. The Court held that a material supplier sued by the general contractor could not shift the blame to the design professional.
In State Ready Mix, Inc. v. Moffatt & Nichol, the engineer was retained by a third party to design a pier, to be constructed by the construction contractor. The contractor hired a supplier to provide the concrete for the pier, including the concrete mix design. The engineer, at the request of the contractor, reviewed and approved the supplier's mix design, despite the fact that this was beyond the engineer's contractual duties. Due to errors in the supplier's mix design, the pier had to be replaced. The contractor sued the supplier for the cost of repair on contract and warranty theories. The supplier then filed a cross-complaint for equitable indemnity against the engineer, claiming that it was jointly liable to the contractor for the damages as a result of the gratuitous review of the mix design.
"This case is extremely important because it provides design professionals a shield against potential claims by project participants that may seek to have the design professional share in liability for the other party's breach of contract that creates only economic damages," said Theodore D. Levin, head of Morris Polich & Purdy LLP's Construction and Design team.
Notably, the appellate decision states: "[The supplier's] appeal is premised on the theory that [the engineer] had a duty to 'sound the alarm' when [the supplier] submitted a concrete mix design that increased the risk of making substandard concrete. [The supplier] claims that the moral blame falls on [the engineer]. If [the supplier] wants to see who is at fault, it should look in the mirror."
About MPP
Morris Polich & Purdy LLP is a law firm that works with its clients on a national basis. We represent clients in every state, as well as many U.S. possessions. We also have a wealth of international affiliations. The firm established in 1969 has approximately 90 attorneys located in five offices in California and Nevada specializing in over thirty practice areas. Our dedication to clients, combined with extensive experience, both in the trial and appellate courts, are the qualities that distinguish us from other law firms. Our attorneys are known for their vast experience and success. We provide superior legal services in a manner consistent with our clients' businesses and providing client service at the highest level.