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Re: Limit of Liability

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     In response to the original post: I have used a limit of liability equal
to the contract  for over 5 years. For the last year i have been having this
sentence printed in capitols ( the only sentence in capitols ) in my 2 page
contract. For a couple large jobs and contracts with cities i have agreed to
omit this sentence but they were exceptions and i would not take it out for
any small job ( with an explanation of  increased cost for extensive soil
testing, peer review, weekly site consultation, etc.).  
     My understanding is that limits of liability are valid in california as
long as it is not hidden in fine print and is not so low as to not be an
incentive to be careful or something like that. ( Consult your lawyer ). It
was about 2 years ago that either a law firm or an insurance company sent
letters to many CA engineers requesting we write the state supreme court to
get an opposite decision " depublished " and later they sent us thank you
letters saying we were successful and the case was depublished and limitation
of liability is still valid. Anyone else remember that or can shed more light
on the subject ? I'll see if i can get my insurance company to write
something on this and post it. 
     By the way ASCE has very good rates for small companies and individuals
on E & O insurance. It is a fraction of what it used to be a few years ago.
     
      Tom Harris , SE
      Thousand Oaks, CA