Liability
Liability
(OP)
I'm looking for some comments:
Our Client owns some steel assemblies that will be anchored to a waterway and and will bolt together to form a cofferdam.
The steel assemblies are in a state of disrepair and require maintenance or remedial work prior to use.
The Contractor has hired an Independent Engineer to provide the design for the cofferdam using the steel assemblies.
The Contractor, with our Client's knowledge, has asked this Independent Engineer to evaluate the cofferdam segments and to provide a manner of repair, and to supervise the repair. We will provide an independent review of these repairs.
The report on the 'deterioration' of the steel assemblies and the repair of same has been prepared by the Independent Engineer for the Contractor and not our Client.
Our Client and ourselves have a copy of the report.
The repair will be undertaken by the Contractor.
The repaired steel assemblies will then be used to construct the cofferdam.
Is it correct to state the following?
In the event of a failure, because our Client 'owns' the cofferdam components, he is far more exposed to liability than if the Contractor owned the cofferdam material and undertook repair to these himself as part of normal maintenance.
In the event of a failure would we be more exposed to liability (we'd still be on the list of litigants, I suspect, even if we had not reviewed the repair)?
Just looking for some thoughts...
Dik
Our Client owns some steel assemblies that will be anchored to a waterway and and will bolt together to form a cofferdam.
The steel assemblies are in a state of disrepair and require maintenance or remedial work prior to use.
The Contractor has hired an Independent Engineer to provide the design for the cofferdam using the steel assemblies.
The Contractor, with our Client's knowledge, has asked this Independent Engineer to evaluate the cofferdam segments and to provide a manner of repair, and to supervise the repair. We will provide an independent review of these repairs.
The report on the 'deterioration' of the steel assemblies and the repair of same has been prepared by the Independent Engineer for the Contractor and not our Client.
Our Client and ourselves have a copy of the report.
The repair will be undertaken by the Contractor.
The repaired steel assemblies will then be used to construct the cofferdam.
Is it correct to state the following?
In the event of a failure, because our Client 'owns' the cofferdam components, he is far more exposed to liability than if the Contractor owned the cofferdam material and undertook repair to these himself as part of normal maintenance.
In the event of a failure would we be more exposed to liability (we'd still be on the list of litigants, I suspect, even if we had not reviewed the repair)?
Just looking for some thoughts...
Dik






RE: Liability
Ron
RE: Liability
RE: Liability
Your client was ultimately responsible for the disrepair, so I don't see that transfer of title to the contractor would make a difference to a landshark. They just follow the money.
Mike Halloran
Pembroke Pines, FL, USA
RE: Liability
The cofferdam was originally owned by the Contractor and as part of an earlier contract the Client took ownership.
Dik
RE: Liability
You must have a statement in your documents that the design is based on new or as new material provided by the client.
Run it by your liability insurer, and put your deductible into escrow.
Michael.
Timing has a lot to do with the outcome of a rain dance.
RE: Liability
Do a little research on the Hoover Dam Bypass to see what could happen if a contractor reconditions and old steel assembly for use on a new project and it fails...
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RE: Liability
RE: Liability
Prior to posting the query, I had already addressed Ron and Paddington's comments... I hadn't considered the implication of MikeH's comments... one of the reasons I posted the query was to obtain 'outside' insight <G>.
Dik
RE: Liability
MH is right on the money that when the lawyers get involved, they simply make a list of everyone's name that shows up in the project file and subpeona each and every one on the list. In fact the claims often also include reference to "Un-named defendants" which can be named later once there has been full discovery. From that point on all are served and required to appear and defend themselves. The attorneys win, everybody else has to pay the attorney fees.