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Limit of Liability

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james-fleming
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Some Links

The Sky is Not the Limit: Limitation of Liability Clauses May Be the Solution to Cap Your Contractual Liability

Contract Clauses – Limitation of Liability by Knud E. Hermansen

Drafting an Enforceable Limitation of Liability Clause

Drafting Limitation of Liability Clauses - A Practical Guide for Design Professionals

Limitation of Liability in Design Professional Contracts


 
Posted : December 21, 2010 8:42 pm
sicilian-cowboy
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I will stand corrected, although look at Knud's statemnent that courts do not look favorably on such clauses, and that your mileage may vary from state to state.

I took the disappearence from the NY metro area of such statements to mean that they have been found lacking hereabouts.

In one of the cites,see "Ricciardi v. Frank, 620 N.Y.S. 2d 918 (City Ct. 1994). In this New York case, a homeowner sued its inspection engineer for failing to detect problems with water intrusion in the basement. The LOL clause limited the engineer’s liability to $375. The court ruled the clause invalid because the homeowner was not given the option to purchase full protection and the clause was presented in the inspection report – after the inspection had taken place."

Most of the cites have reservations regarding specific conditions, and of course, a third party that has not signed the contract will not be held to that clause.

As I said, if it works, good luck!


 
Posted : December 21, 2010 8:48 pm
duane-frymire
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For what it's worth, I can't remember having read a case where one of these has held up under court scrutiny where a licensed professional was involved. Have read a bunch of cases where they were struck down. But anything is possible. Under the right circumstances and with the correct wording, who knows?


 
Posted : December 22, 2010 7:50 am
james-fleming
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Arizona Case

1800 Ocotillo, LLC v. The WLB Group, Inc


 
Posted : December 22, 2010 8:16 am
duane-frymire
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Arizona Case

Thanks James, I hope it is a trend that most jurisdictions will continue. Seems reasonable that parties should be able to bargain on this point (as long as they're both sophisticated parties).


 
Posted : December 22, 2010 2:18 pm

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