Lawyer Commentary JD Supra United States Maryland Appellate Court Holds Economic Loss Doctrine Bars Contractor’s Tort Claims Against Government’s Design Professional on Public Construction Project

Maryland Appellate Court Holds Economic Loss Doctrine Bars Contractor’s Tort Claims Against Government’s Design Professional on Public Construction Project

Document Cited Authorities (1) Cited in Related

Balfour Beatty Infrastructure, Inc. v. Rummel Klepper & Kahl, LLP, 226 Md. App. 420, 130 A.3d 1024, 2016 Md. App. LEXIS 3 ( Md. Ct. Spec. App. Jan. 28, 2016)

The City of Baltimore retained a design professional, Rummel Klepper & Kahl (“RK&K”), to produce a design for construction of a wastewater treatment plant. The City then invited bids for construction of the plant, and contractor Balfour Beatty Infrastructure (“Balfour Beatty”) was the successful bidder. RK&K and Balfour Beatty each had a separate contract with the City, but did not have a contract with one another. After alleged defects in RK&K’s design caused Balfour Beatty to incur delays and increases to the cost of its work, it sued RK&K, but not the City.

Balfour Beatty asserted claims against RK&K for professional negligence, negligent misrepresentation, and information negligently supplied for the guidance of others under § 552 of the Restatement (Second) of Torts. Balfour Beatty alleged that it based its bid and resulting contract with the City on design details specified in RK&K’s design packet, but that flaws in the design delayed Balfour Beatty’s progress and necessitated costly and time-consuming re-work to portions of the project.

RK&K...

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