Construction Risk - N.D. Lea v Edgeworth (Professional Liability Insurance)

Question 1

Why was the outcome of this case so important to practicing engineering professionals?

Answer 1

Because even though ND Lea did not have a contract with Edgeworth, they (as engineers) were still held liable to ensure their drawings were accurate.
That means that as an engineer, even if you don’t have a contract with the contractor building your design, your stamping it means you have a duty of care since it will be relied upon by the contractor for their work.
The Supreme Court in this case decided that since the contractor would not have the time or means to complete their own design after being awarded the contract, the design of the engineer hired by the province would be relied upon by them.
The Limited liability clause in the Province’s contract exempted the Province from liability, but did not exempt the engineering professional’s duty of care.

Question 2

In this case, who owes the duty in the case of negligent design - the professional or the professional’s firm?
Why?