BrianPetersen---they will chase the deeper pockets. The engineer (like all of us!) will have limited resources. He probably has professional liability insurance, but those are declining limit coverages....meaning that his defense costs come out of his insurance limits. I worked on one a few years back where the engineer was clearly at fault, had a professional liability policy coverage of $1,000,000 and when his lawyer got finished "defending" him, there was only about $400,000 left for the damaged party. They got that, but their damages were about $4.5 million (construction defect case).
So if an attorney can get past the sovereign immunity issue because of their negligence, the "public" has a much deeper pocket than the engineer. The property owner also likely has a lot more coverage than the engineer, so they will look hard in that direction as well. They won't ignore any of them, but they will try to weave the entanglements such that they get the most return.