Notify?
Notify?
(OP)
We provided the structural engineering on a new winery and the construction has just been completed.
Turns out the owner is now looking to go after the people they bought the land from because the site is in a high seismic region which resulted in higher construction cost. The Sds for the building was 1.15, which is high but not near the max of 1.93 in California. I don't know how they wouldn't have known... it seems to me their own diligence in the purchase was lacking.
They have asked for copies of our plans and calculations to give to their expert to review. I don't see how we can't give these to them since they paid for them. They could probably get copies through other means anyhow.
We are wondering whether we should notify our insurance company. This isn't a "claim" against us or even a "circumstance" per-se, but it's never good when attorneys get involved. We don't really want to notify them because of the risk of them jacking up our rates at renewal..... maybe we wait to see if a real "claim" comes??
Any suggestions?
Turns out the owner is now looking to go after the people they bought the land from because the site is in a high seismic region which resulted in higher construction cost. The Sds for the building was 1.15, which is high but not near the max of 1.93 in California. I don't know how they wouldn't have known... it seems to me their own diligence in the purchase was lacking.
They have asked for copies of our plans and calculations to give to their expert to review. I don't see how we can't give these to them since they paid for them. They could probably get copies through other means anyhow.
We are wondering whether we should notify our insurance company. This isn't a "claim" against us or even a "circumstance" per-se, but it's never good when attorneys get involved. We don't really want to notify them because of the risk of them jacking up our rates at renewal..... maybe we wait to see if a real "claim" comes??
Any suggestions?






RE: Notify?
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Makes no sense.
RE: Notify?
RE: Notify?
Your plans should clearly show the seismic design criteria anyway so the calculations wouldn't tell them anything new.
I would notify your insurance carrier (per WillisV above) - just to keep them in the loop.
RE: Notify?
Do not notify your insurance carrier until you are notified of a claim. Your insurance is triggered on a "claims made" basis, so don't get them all excited that you might be working for litigious clients when the litigation probably has nothing to do with you.
This is a purchase "due diligence" issue between the current landowner and the former landowner. If no representations were made about the seismic classification by the former landowner, it probably won't go anywhere. If representations were made by the former landowner and those representations are wrong, then perhaps the current landowner was "harmed". That's for the lawyers to decide. Check YOUR contract for ownership of documents. You might be able to initially control what you give to the owner (plans/specs for construction only...no calcs, no admin file, etc.). If you gave up ownership of documents (hopefully you didn't) to your client, then you'll probably have to give them all of your work product. If you get a subpoena for documents from the other side, you'll have to honor it anyway.
Go through your file and clean it up. Make sure you don't have extraneous info in there and make sure you don't have drafts of reports or correspondence.
RE: Notify?
RE: Notify?
In this case, asking for plans and calculations is either one of two things: 1) the owner needs "proof" that the building was in a high seismic area or....2) the owner wants to also look at the design and calculations (hiring a peer reviewer?) to see if the engineer over-designed and cost him $$.
In the second case the engineer might be eventually "blamed" and the concern is that if you wait too long to notify your carrier, you risk a situation where they might pull away from defending you because they had no chance to advise or respond to the situation.
But too early calling of your insurance, and too often calling, can be bad as well, I would agree.
RE: Notify?
I trust that no contractual constraints were placed on you as the designer to keep these values to the absolute minimum...
Mike McCann
MMC Engineering
http://mmcengineering.tripod.com
RE: Notify?
RE: Notify?
In reading our policy we are required to notify them if we become "aware of a possible claim arising from a specific wrongful act in performing professional services". At this point in time nobody has accused us of any wrongful act, so I don't think there is any legal obligation on our part to make the call.
I think we may look into purging our files as Ron suggests..... prepare for the storm....
RE: Notify?
Good luck and I hope that pending shotgun blast doesn't come near you.
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I've often, over the course of 40 years, informed a client that something would be made available to them... not bothering to inform them that this would only happen with a court order... and only once has this been provided.
Dik
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I've been doing this for 25 years with only one claim... and we were dismissed from that suit for lack of cause...
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BA
RE: Notify?
We had an issue where a homeowner, who was doing his own work, refused to follow drawings or the advice of the contractor that constructed the foundation... when his basement wall leaked, the contractor came out to site to excavate down and determine the cause of the problem.
He was going to do this as a free service and I told him to invoice like a normal project. It became and issue during the ensuing litigation and it was a good thing that this was considered as a cost item...
If there is no downside to talking to your insurance guy... even advising him of the owner's intention to litigate against the property seller, then you might consider that... your insurance policy is different than most that I've encountered.
I think Ron is correct in holding off until something 'real' happens... clean up your files of any 'other' non-related stuff. Guilty or innocent, many insurance companies/policies reserve the right to plead on your behalf, ie., to their financial benefit (right or wrong).
Dik
RE: Notify?
Heck, if this thing goes further, you will be included as a witness anyway and have to go thru discovery at least. Just review the case, get your ducks in line, and be prepared to make the appropriate move if the situation develops further.
Mike McCann
MMC Engineering
http://mmcengineering.tripod.com
RE: Notify?
I learned as a kid that contrition was not good for the soul... you don't have to inform anyone, maybe other than your priest, why or what you are doing... I didn't say obstruct him... just don't provide anything other than what you're obligated to provide.
Dik
RE: Notify?
But what he doesn't know that you have, won't arouse suspiscion.
It's what he thinks that you have, that you do or don't have, that does.
Mike McCann
MMC Engineering
http://mmcengineering.tripod.com