NPPE Professional Liability 2

Question 1

Under which doctrine can a licensed professional engineer be held personally liable even when acting as an employee of a corporation?

Accepted Answer

Personal professional liability

Answer

Licensed professionals in Canada retain personal professional liability regardless of employment status. The professional licence is personal, not corporate, so the engineer remains individually accountable for their professional acts and omissions.

Question 2

A structural engineer stamps drawings that contain a calculation error leading to a roof collapse. No one is injured, but the building owner incurs $400,000 in repair costs. Which type of loss is recoverable in a negligence claim?

Accepted Answer

Recoverable property damage loss

Answer

The roof collapse constitutes physical damage to property. Damage to tangible property is recoverable in negligence. Pure economic loss (financial loss without physical damage) faces additional hurdles, but here the property was physically harmed.

Question 3

Which limitation period most commonly applies to professional negligence claims in Canadian common law provinces?

Accepted Answer

2 years from discovery

Answer

Most Canadian common law provinces have adopted a basic 2-year limitation period running from the date the claim was discovered or ought to have been discovered, following the Ontario Limitations Act, 2002 model.

Question 4

An engineer provides a geotechnical report to Client A. Client B, a subsequent purchaser, relies on the report and suffers loss when the findings prove inaccurate. Which principle governs whether the engineer owes a duty to Client B?

Accepted Answer

Reasonable foreseeability and proximity (Anns/Cooper test)

Answer

Canadian courts apply the Anns/Cooper two-stage test to determine whether a duty of care is owed to a third party: (1) reasonable foreseeability and proximity, and (2) whether policy reasons negate the duty. The engineer may owe a duty to Client B if reliance by a subsequent purchaser was reasonably foreseeable.

Question 5

What is the primary purpose of errors and omissions (E&O) insurance for professional engineers?

Accepted Answer

To indemnify the professional against claims arising from negligent professional services

Answer

E&O insurance, also called professional liability insurance, indemnifies the insured professional against third-party claims alleging financial loss caused by negligent or erroneous professional services or advice.

NPPE - National Professional Practice Examination Practice Test

NPPE - National Professional Practice Examination Practice Test

NPPE Professional Liability 2