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Larryhd2

Larryhd2

Structural
Dec 10, 2004
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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?

 
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Calling a lawyer is probably the worst thing to do. Early notification to the insurance company of a potential claim is the best thing to do. Legal costs, if any, will be covered by the insurance.

BA
 
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ztengguy... working with the owner beyond what is required may not be in your best interests... Litigation stage is likely set and there would be nothing to be gained. In addition, you motive, for being helpful, could be questioned and come under attack.

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
 
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Openly defensively posturing yourself, if the client gets wind of it, can predicate the scenario you do not want. He may think that you are hiding something.

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
 
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Mike...
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
 
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