This annual update is to provide a review of the most significant decisions impacting design professionals. The cases will consider the following important issues: the effect contractual language has on a professional designer’s liability, duty of care owed to third parties and its scope, the completed and accepted doctrine, privity of contract issues, coverage issues, the economic loss rule, spoilage, nullum tempus, certificates of merit, and arbitration agreements.

As will be discussed, courts have reached various conclusions regarding duty to third persons, the accepted and completed doctrine, and whether privity will prevent actions between parties who are not in contract with each other. Further, these cases consider the extent to which contracting will limit a professional designer’s liability for defective designs and how courts enforce such limitations. This update also provides case law suggesting that courts look to clear, unambiguous language in policies to decide coverage issues. Lastly, the cases included illustrate the complexity in applying the economic loss rule.