• CSC tag_orngBlu
  • Conference
      • About
        • About the Conference
        • Floor Plan / Sponsor List
        • Sponsors
        • FAQ
        • Contact Us
        • Health & Safety
      • Hotel & Travel
        • Hotel Accomodations
        • Travel Information
      • Attend
        • Why Attend?
        • Registration & Pricing
        • Agenda At-A-Glance
        • Conference Schedule
        • MCLE Accreditation
        • Speakers
        • Speaker Resources
      • Sponsor
        • Why Sponsor?
        • Sponsor / Inquire
        • Sponsor Resource Center
        • Sponsorship & Advertising
  • News
    • Latest News
  • Subscribe
    • Newsletter Signup
  • .
  • Conference
    • About
      • About the Conference
      • Floor Plan / Sponsor List
      • Sponsors
      • FAQ
      • Contact Us
      • Health & Safety
    • Attend
      • Why Attend?
      • Registration & Pricing
      • Agenda At-A-Glance
      • Conference Schedule
      • MCLE Accreditation
      • Speakers
      • Speaker Resources
    • Sponsor
      • Why Sponsor?
      • Sponsor / Inquire
      • Sponsor Resource Center
      • Sponsorship & Advertising
    • Hotel & Travel
      • Hotel Accomodations
      • Travel Information
  • News
    • Latest News
  • Subscribe
    • Newsletter Signup

December 9-11, 2025
Hyatt Regency Coconut Point, Bonita Springs, FL

Register Sponsor
Q

Latest News

May 30, 2018

Economic Loss Protection is Further Reduced in Louisiana

Latest News
Economic Forecasts | Ethics and Compliance | Infrastructure and Transportation | Insurance and Surety | Latest News | Litigation Strategies/Dispute Resolution | News | Risk & Contract Management | Workforce and Labor
May 30, 2018

Economic Loss Protection is Further Reduced in Louisiana

A contractor can hold a construction manager liable for its losses.

J. Kent Holland Jr.’s article at constructionrisk.com discussing Latham Company, Inc. v. State Dept. of Education, 2017 WL 6032333 (Louisiana 2017), outlines the continuing erosion of the economic loss doctrine in Louisiana.

Traditionally, the economic loss doctrine has protected architects and engineers from suits by contractors based upon the premise that design professionals contract directly with project owners not contractors.

This is no longer the case in Louisiana. “Previous court decisions in this state eliminated the use of the economic loss doctrine as a defense by architects and engineers against contractor suits. Now this decision further reduces the use of the economic loss doctrine by holding firms such as construction managers providing professional services have no protection by the economic loss doctrine either.”

The contractor alleged that the construction manager failed to perform its duties by refusing and/or failing to conduct any of it duties in a timely manner and by “overall interference with the progress and completion of the project.”

The construction manager’s argument that it had not contracted with, and therefore did not owe a duty to the contractor was rejected by the appellate court.

“The court found that if the CM failed to render its ‘management services’ during the design phase of the project or negligently provided those services it was reasonably foreseeable that faulty design documents could result and this could cause economic harm to the contractor.” In other words, the contractor was a “foreseeable third party that would be affected by the CM’s services.”

Based upon this finding, the court rejected the defendant’s request for a summary judgment.

This decision is a victory for contractors. Any professional providing information or services a contractor must rely upon should be held accountable for its actions and its work product when they adversely affect the contractor.

Source—

Construction Manager Owes Independent Duty of Care to Contractor—Economic Loss Affords no Protection, J. Kent Holland Jr., constructionrisk.com, April 2018.

Economic Forecasts•Ethics and Compliance•Infrastructure and Transportation•Insurance and Surety•Latest News•Litigation Strategies/Dispute Resolution•News•Risk & Contract Management•Workforce and Labor

SHARE

Share on Email
Share on Linkedin
Share on Facebook
Share on Pinterest
Share on Twitter
← Previous Article Next Article →
Latest News Latest NewsNews

AGC: “Extreme” Price Hikes for Steel and Aluminum

“The huge increases in steel and aluminum tariffs appears to have enabled domestic producers to push up their selling prices,” said Ken Simonson, the association’s chief economist.

Latest News Latest NewsNews

NYC Attorney Confirms: Defects on the Rise

Carol A. Sigmond, partner at Greenspoon Marder LLP, is seeing a trend; construction defects are on the rise.

Latest News Latest NewsNews

AGC: “Extreme” Price Hikes for Steel and Aluminum

“The huge increases in steel and aluminum tariffs appears to have enabled domestic producers to push up their selling prices,” said Ken Simonson, the association’s chief economist.

Latest News Latest NewsNews

Pricing Risk in Construction – CSC Session Preview

How do you factor in risk from tariffs, immigration crackdowns, and political unrest? CSC will tackle it all.

Latest News Latest NewsNews

Tariffs Drive Up Prices On Key Construction Materials

Steep tariff increases on aluminum and steel, along with a recent tariff on raw copper, drove the producer price index.

Latest News Latest NewsNews

Expanding Roles for In-House Counsel

According to John Fedun, many services that have traditionally been outsourced are now being brought in-house.

Latest News Latest NewsNews

Conference Connections and In-Person Education 

Why spend the time, money, and effort in the digital age? We asked why CSC attendees continue to make the trip.

Latest News Latest NewsNews

Construction Spending Decreases by 0.3 Percent

It's the largest year-over-year decrease since February 2019, according to an analysis by the AGC.

SHOW INFORMATION

SIGN UP

Register now for the opportunity to connect with thousands of atttendees and vendors

Register
Sponsor / Inquire
FOLLOW US ON
  • Follow
  • Follow
  • Follow
Emerald Logo
© 2025 Emerald X, LLC. All Rights Reserved
ABOUTCAREERSAUTHORIZED SERVICE PROVIDERSYour Privacy ChoicesTERMS OF USEPRIVACY POLICY