Cost of E & O insurance

[johnN]

Condos are a particularly difficult deal. A friend in Reno was approched by one of the national builders to buy some of his land for a condo project. $600K sell.
Even this giant company, he found out, was budgeting $30,000 per unit for insurance coverage against owner lawsuit. As opposed to 5K for a single family home. Having owned some condo investment properties, I can first hand tell you that the owners think that when they buy -all expenses are covered by their fees, they never read the CC&R document, and when things need maintainance they sue the builder/ designer etc. The cost of litigation is so high they almost always settle. One of my neighbors is a "forensic Architect" (LOL) he has made millions trumping up defects. The advice is to stay away from condo projects unless all the drawings appear on the builders title block and you are covered by his insurance. Even then think twice.

[Draw4Food]

If you have a disclaimer which clearly states (among other things) that your liability will be limited to the price you are paid, wouln't that be adequate? Nothing will protect you 100%, of course, but shouldn't this be a reasonably effective firewall?

I ask this from the standpoint of a designer, not an architect. Aren't architects "on the hook" due to the nature of their licensing? Like other professionals who are licensed, like a structural engineer or accountant, their certification implies that they "know what they are doing". Not to demean designers, but we seem to be held in lower esteem and to a lower standard than architects, and I wonder if the courts share this opinion?

Has any designer here ever been sued while having a solid disclaimer in place?

In the interest of Chief users solidarity, I hereby say a curse upon Wendy's legal antagonists.

[lbuttery]

we seem to be held in lower esteem and to a lower standard than architects, and I wonder if the courts share this opinion?


In general, they would. But it depends on the state and the circumstances and while the disclaimer might be a shield it could be pierced.

Wendy's point is that you might eventually be held innocent or not liable but you still have to pay the lawyers to defend you. Arrrgh.

Lew