{"id":903260,"date":"2024-09-05T14:06:46","date_gmt":"2024-09-05T20:06:46","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=903260"},"modified":"2024-09-05T14:06:48","modified_gmt":"2024-09-05T20:06:48","slug":"peremption-staute-defense-helpful-for-design-professionals","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/peremption-staute-defense-helpful-for-design-professionals\/","title":{"rendered":"Recent First Circuit Decision Helpful For Design Professionals Asserting Peremption As Defense To Untimely Claims"},"content":{"rendered":"\n<p>Brian S. Schaps | <a href=\"https:\/\/www.deutschkerrigan.com\/news-insights\/insights\/recent-first-circuit-decision-helpful-for-design-professionals-asserting-peremption-as-defense-to-untimely-claims\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">DeutschKerrigan<\/a><\/p>\n\n\n\n<p>Architects and engineers should be aware of a <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/construction-contract-sudden-death\/\">peremption statute<\/a> that may bar untimely claims against them.\u00a0\u00a0\u00a0<\/p>\n\n\n\n<p>&nbsp;All professional architects, landscape architects, engineers, surveyors, and their associated interns, as well as interior designers and real estate developers using development plans certified by professional engineers or architects \u2013 all licensed in Louisiana &#8212; should be aware of the protection against untimely claims against them afforded by the five-year period of peremption established in La. R.S. 9:5607(A).&nbsp;&nbsp;<\/p>\n\n\n\n<p>&nbsp;A period of peremption, under Louisiana law, is the period of time the Legislature has established for the existence of a cause of action, or claim. against certain classes of professionals for damages caused by their professional negligence or breach of contract. Once the period of time commences, it cannot be interrupted, suspended, or renounced. Once it expires, any cause of action against the professional is extinguished. That is, the cause of action, or claim, against that professional simply no longer exists and cannot be revived, even by adding the professional to a suit that is timely brought against other parties arising out of the same project.&nbsp;&nbsp;<\/p>\n\n\n\n<p>&nbsp;The critical question then is when does the period of peremption begin or \u201ccommence\u201d?&nbsp;<\/p>\n\n\n\n<p>&nbsp;For the professionals enumerated in La. R.S. 9:5607(A), the period of peremption can begin or \u201ccommence\u201d from three different points in time:&nbsp; &nbsp;<\/p>\n\n\n\n<p>(1) the date of registry of the owner\u2019s acceptance of the work in the parish mortgage office;<\/p>\n\n\n\n<p>(2) the date of the owner\u2019s occupancy or possession of the project; or&nbsp;<\/p>\n\n\n\n<p>(3) the date of completion of the services that (a) are not preparatory to construction or (b) if preparatory, the services do not include an inspection of the work.&nbsp;<\/p>\n\n\n\n<p>In Conti Enterprises, Inc. v. Providence\/GSE Associates, LLC, rendered on October 30, 2023, the First Circuit interpreted and applied the third point in time for the commencement of peremption.&nbsp;<\/p>\n\n\n\n<p>The Court held that the period of peremption applicable to the suit by St. Tammany Parish Consolidated Government (the \u201cParish\u201d) against Hartmann Engineering, Inc., its professional engineer, commenced on the date when Hartmann had completed its engineering services and delivered its final stamped revised plans and specifications in September 2013. The peremption period did not commence on the later date in June 2017, when the Parish recorded its acceptance of the construction work.&nbsp;<\/p>\n\n\n\n<p>Hartmann was the design engineer of record that had prepared the plans and specifications for a road construction project called the \u201cHollywood Road Widening Project,\u201d sponsored and partially funded by the DOTD. The undisputed facts showed that Hartmann had no contractual obligation to provide, and did not in fact provide, any inspection of the work after it was let for bid.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Even though the successful contractor for the Project timely sued the Parish and other entities for alleged cost overruns, delay damages, and extras, allegedly caused by errors in the design and construction administration, the First Circuit held that the Parish\u2019s third-party demand against Hartmann filed in May 2020 was untimely, as all claims against Hartmann had by then expired \u2013 that is perempted \u2013 in September 2018, five years after Hartmann had delivered its stamped plans.&nbsp;&nbsp;<\/p>\n\n\n\n<p>The Court rejected the Parish\u2019 argument that the peremption period against Hartmann commenced on June 23, 2017, the acceptance recordation date, because Hartmann\u2019s contract did not include contract administration that would have included any inspection services.&nbsp;<\/p>\n\n\n\n<p>The First Circuit also rejected the Parish\u2019s argument that Hartmann\u2019s responses in 2014 to emails from the DOTD Engineer and a bidding contractor concerning questions about the bid or that later furnishing a contractor a \u201ccopy of its native design files\u201d as a \u201cmatter of courtesy\u201d constituted additional \u201cservices\u2019 under Hartmann\u2019s contract that would have extended the peremption period beyond September, 2016. The Court noted that in both situations Hartmann received no additional compensation after final payment in 2013.&nbsp;<\/p>\n\n\n\n<p>Finally, the Court rejected the Parish\u2019s argument that its later retention of one of Hartmann\u2019s engineers to testify as an expert in an expropriation suit brought by a property owner constituted either a \u201cdesign service\u201d or \u201cinspection of the work\u201d under its original contract that would render La. R.S. 9:5607(A)(3) in applicable.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Lesson?\u00a0 Be mindful of the time periods when the services you render under your contracts are completed. The commencement of the peremption period may begin before the completion of the project.\u00a0<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>When one of your cases is in need of a construction expert, estimates, insurance appraisal or umpire services in defect or insurance disputes &#8211; please call Advise &amp; Consult, Inc. at 888.684.8305, or email <a href=\"mailto:experts@adviseandconsult.net\">experts@adviseandconsult.net<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Brian S. Schaps | DeutschKerrigan Architects and engineers should be aware of a peremption statute that may bar untimely claims against them.\u00a0\u00a0\u00a0 &nbsp;All professional architects, landscape architects, engineers, surveyors, and their associated interns, as well as interior designers and real estate developers using development plans certified by professional engineers or architects \u2013 all licensed in&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/peremption-staute-defense-helpful-for-design-professionals\/\">Continue reading <span class=\"screen-reader-text\">Recent First Circuit Decision Helpful For Design Professionals Asserting Peremption As Defense To Untimely Claims<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[9009],"tags":[9895,8795,12078],"class_list":["post-903260","post","type-post","status-publish","format-standard","hentry","category-design-professionals","tag-advise-consult","tag-design-professinals","tag-peremption-statute","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Recent First Circuit Decision Helpful For Design Professionals Asserting Peremption As Defense To Untimely Claims - Advise &amp; 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