Balfour Beatty Infrastructure, Inc. v. Rummel Klepper & Kahl, LLPAnnotate this Case
The City of Baltimore contracted with Engineer to design upgrades to a wastewater treatment plant. Contractor successfully bid for work on the construction project. During construction, Contractor encountered leaking and other problems, resulting in delays and cost overruns. Contractor subsequently filed a complaint against Engineer, arguing that Engineer owed it a tort duty of care because Engineer knew that Contractor would rely on its designs in bidding and constructing the project. The circuit court granted Engineer’s motion to dismiss due to lack of privity between Contractor and Engineer. The court of special appeals affirmed. The Court of Appeals affirmed, holding (1) the economic loss doctrine barred Contractor’s negligence and negligent misrepresentation claims; and (2) privity equivalent concepts of extra-contractual duty did not apply in Contractor’s case.