Professional Liability Flashcards

Which equitable doctrine may allow a court to hold a professional engineer liable to a third party who relied on the engineer's undertaking, even without a contract between them?

Answer: Hedley Byrne assumption of responsibility

The Hedley Byrne principle recognises that a person who voluntarily assumes responsibility for providing information or advice to another, knowing they will rely on it, may be liable in tort for negligent misstatement causing economic loss.

An engineer is named in a lawsuit alleging professional negligence. The engineer's firm is no longer operating. Which entity would likely be responsible for defending the claim?

Answer: The engineer's former E&O insurer, if the policy has run-off coverage

Run-off (or tail) coverage in an E&O policy extends protection for claims arising from work done during the policy period, even after the firm ceases operations. Without run-off coverage the engineer faces personal exposure.

A client contract includes a clause limiting the engineer's total liability to the value of the professional fees. Canadian courts have generally treated such clauses as:

Answer: Enforceable unless unconscionable or obtained by misrepresentation

Limitation of liability clauses in commercial contracts between sophisticated parties are generally enforceable in Canada under freedom of contract principles, unless the clause is unconscionable, the product of misrepresentation, or void by statute.

An engineer discovers mid-project that their client intends to use the engineer's work in a way that could harm public safety. The engineer's contract requires completion. What is the engineer's primary obligation under Canadian professional codes?

Answer: Withdraw from the project if the safety risk cannot be mitigated

Canadian engineering codes of ethics place public safety above obligations to clients. If an engineer cannot mitigate a public safety risk, withdrawal is required. The duty to the public supersedes contractual obligations.

Which of the following best describes 'joint and several liability' as it may apply to engineers on a multi-disciplinary project?

Answer: Each defendant can be required to pay the full judgment, with rights of contribution among co-defendants

Under joint and several liability, each liable defendant can be required to satisfy the entire judgment. The paying defendant may then seek contribution from co-defendants. This can expose an engineer to paying damages beyond their proportional fault if other defendants are insolvent.

Under what circumstances is it permissible for an engineer to rely on work performed by a technician or junior engineer when stamping drawings?

Answer: When the engineer has directly supervised the work and is satisfied it meets the required standard

A professional engineer may delegate technical work but must exercise direct and adequate supervision. Stamping drawings certifies that the work meets professional standards; doing so without adequate supervision is professional misconduct.