Protections Provided to New York Architects and Contractors under the Economic Loss Rule

THE ECONOMIC LOSS RULE IN NEW YORK CONSTRUCTION CONTRACTS:

WHAT IT IS AND HOW IT MAY BENEFIT CONTRACTORS AND ARCHITECTS

The “economic loss rule” is a rule that New York courts use to prevent a plaintiff from recovering against a defendant for a tort (usually negligence), when the essence of the plaintiff’s claim is for failure to live up to the terms of a contract.

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The Top 5 Avenues of Architect Liability in New York

Architects in New York can be found liable for damages in various situations, depending on who claims damage, and the basis of the claim itself. For example, where an owner has a direct contract with the architect, the owner could bring forth a simple claim based on the contract or a claim based on a tort action. Such a tort action, based on negligence, is a claim for malpractice.

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Defects By Design; Who is Liable for Bad Plans?

Construction is filled with countless risks, from weather conditions, labor strikes, material unavailability, subsurface conditions, inaccurate plans, and specifications, among others variables. Each has the potential to delay the project, cause increased completion costs, and increase the likelihood of disputes, liens, or litigation. Problems stemming from inaccurate plans and specs can quickly become the obstacles of others beyond just the design professional itself.
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