Lanier at McEver, L.P. v. Planners and Engineers Collaborative, Inc.
2007 GA App LEXIS 539 (Ga. Ct. App., May 16, 2007)
In this case, the Court of Appeals of Georgia affirmed a decision limiting an owner/developer’s damages against the project engineer to the fees paid for the engineer’s services.
The court held that a damages limitation clause that limits the amount of damages an engineer could possibly pay to an owner/developer is neither a violation of public policy nor an unenforceable penalty. Lanier, was the owner/developer of an apartment complex. Lanier hired the defendant engineering firm PEC, to design various aspect of the apartment complex, including the storm sewer and sanitary sewer drainage and management system. The engineering agreement contained a limitation of liability provision stating that the total aggregate liability of PEC and its subconsultants to Lanier “shall not exceed PEC’s total fee for services rendered on this Project.” Following construction of the Project according to the plans and specifications prepared by PEC, problems arose with the storm water system that required modification and repair by the owner. As a result, Lanier sued PEC for negligent design, breach of express contractual warranty and litigation expenses.