Limitation of liability clause helps geotechnical engineer avoid $9.6 million verdict

摘要

LIMITATION of liability (LoL) clauses are frequently used in engineering contracts to cap the financial exposure a company faces for claims arising from its work. The logic behind the clauses is fairly straightforward: If engineers-particularly structural and geotech-nical-make mistakes, they can face substantial claims that are vastly disproportionate to the fees they earned. The caps set forth in an LoL clause try to balance this, and they are often expressed in terms of the fees paid under the contract or an agreed-upon monetary value.