Limitation Of Liability Provisionscan A Plumbing Subcontractor Cap Liability For Sole Negligence?

摘要

Absent contractual limitations, liability for economic losses resulting from the sole negligence of a professional in the construction trade is limited only by the extent of the assets and/or insurance of that professional. Once a contract enters the picture, liability for such losses can be limited or distributed among the parties in a number of ways through limitation-of-liability provisions.rnLimitation-of-liability provisions capping the liability of a construction professional for that professional's sole negligence to a fixed amount are becoming increasingly common.rnThe law generally favors allowing parties to allocate risks as the parties deem fit, absent circumstances that would make a contract or its limitation-of-liability provisions unconscionable or against public policy. Typically, unconscionability is difficult to show and found only where one party has been misled as to the nature of the bargain, where there appears to have been severe imbalance in bargaining power, or where specific terms are outrageous.rnIn Ocotillo v. WLB, the Arizona Court of Appeals considered whether a limitation-of-liability provision capping liability for a construction professional's sole negligence to the amount of that professional's fees violates Arizona public policy.