Negligence of Architects, Engineers, and Similar Professionals
Often, architects, engineers and other similarly situated professionals are employees of a company engaged in contracting for more extensive services. The fact that they are employees does not insulate them from individual professional negligence claims. A recent Florida case held that even where a company has a limitation of liability clause in their contract it probably does not limit the individual liability of the professional engineer or architect performing work on behalf of that company. Florida law recognizes a cause of action against an individual professional, irrespective of whether or not that person provides services through a corporation.
Further, the economic loss rule does not bar a claim against a professional for their negligence even though the damages are purely economic in nature and the aggrieved party has entered into a contract with the professional’s employer. A common law claim may be instituted against a professional based on their acts of negligence despite the lack of a direct contract between the professional and the aggrieved party. In cases of negligence in providing professional services, public policy dictates that liability not be limited to the terms of the contract; an extra contractual remedy against a negligent professional is necessary because contractual remedies in such situations may be inadequate.
Whether or not a third party damaged by a professional’s negligence can recover damages is more subtle. Unless a contract is entered into for the direct and substantial benefit of third parties, it binds and benefits on the parties themselves. In determining whether a contract is entered into for the direct and substantial benefit of a third party, the contracting parties intention, gleaned from the contract itself, is controlling. It is not enough that professional services ultimately rendered accrued to the owner.
A “professional” under Florida law is generally someone in an occupation that requires a 4 year college degree. It has also been defined as any person who obtains a license or other legal authorization as a precedent to rendering any type of personal service to the public. That includes but is not limited to CPA’s, doctors, dentists, architects, veterinarians, lawyers, and life insurance agents. The requirements for being a “professional” may vary depending on the profession. It is best to consult and attorney if there is an issue as to whether a person is or is not a “professional” for the purpose to determining the applicable statute of limitations, and whether or not the economic loss rule comes into play.
