Construction Law

Economic Loss Doctrine bars Nevada claims against Architect

By Werner Sabo

In Terracon Consultants Western, Inc. v. Mandalay Resort Group, 2009 WL 790364 (Nev., March 26, 2009), the Nevada Supreme Court answered the following question submitted by a federal court: Does the economic loss doctrine apply to preclude negligence-based claims against design professionals, such as engineers and architects, who provide services in the commercial property development or improvement process, when the plaintiffs seek to recover purely economic losses? The court answered this question in the affirmative.

The case began when a casino hired various design professionals to analyze the soil conditions prior to construction of a new casino. The design of the foundation was premised on their analysis, which proved to be faulty. When the building authorities required the owner to spend additional money to beef up the foundation, the owner sued the design professionals for professional negligence. The economic loss doctrine operates to bar such negligence actions in Nevada where the loss is purely economic.

Full post as published by Construction Attorney Blog on April 19, 2009 (boomark / email).