U.S. District Court for Northern District of California Holds Engineer May Be Liable to Contractor for Breach of Professional Duty and Negligent Misrepresentation

Apex Directional Drilling, LLC v. SHN Consulting Eng’rs & Geologists, Inc., 2015 U.S. Dist. LEXIS 105537 (N.D. Cal. Aug. 11, 2015)

The United States District Court for the Northern District of California held that an engineer that prepares plans and specifications to be relied upon by contractors in preparing their bids for a construction project owes a duty of care to those contractors, and therefore can be held liable to the contractors for breach of professional duty and/or negligent misrepresentation. Continue reading “U.S. District Court for Northern District of California Holds Engineer May Be Liable to Contractor for Breach of Professional Duty and Negligent Misrepresentation”

Washington State Court Upholds Termination For Convenience Clause in Subcontract – Partial Performance Provides Adequate Consideration to Make Contractor’s Promise Not Illusory

SAK & Assocs. v. Ferguson Constr., Inc., 189 Wn. App. 405 (Wash. Ct. App. 2015)

Ferguson Construction, Inc. (“General Contractor”) entered into a fixed sum contract (the “Subcontract”) with SAK & Associates (“Subcontractor”) to provide concrete materials and paving services (the “Work”).  The Subcontract included a termination for convenience clause providing that General Contractor could terminate Subcontractor for convenience upon written notice.  After Subcontractor completed 24 percent of the Work, General Contractor terminated Subcontractor.  General Contractor paid Subcontractor 24 percent of the fixed contract price for the work Subcontractor actually completed. Continue reading “Washington State Court Upholds Termination For Convenience Clause in Subcontract – Partial Performance Provides Adequate Consideration to Make Contractor’s Promise Not Illusory”