Originally Posted By: jferry
This post was automatically imported from our archived forum.
Limitation of Liability Clauses
A limitation of liability clause does not release the home inspector from any liability to his client, but instead apportions the potential liability between the parties. Not surprisingly, such clauses are strongly disfavored by the courts because they are generally presented to the client as take-it-or-leave-it contracts of adhesion.
Nevertheless, some courts may uphold limitation of liability clauses where the parties are of equal sophistication and the limitation of liability clause is actually bargained for between the parties.
When contemplating whether to include a limitation of liability clause in your home inspection contract, you should give some thought to the effect it may have on your client?s perception of your professionalism.
Would you engage the services of an architect who had such a clause in his engagement contract? A babysitter?
Moreover, if you are a professionally competent home inspector, monetary damages are likely to be easily eclipsed by attorneys? fees.
So, my feeling is that the benefit to be derived from such a clause in a home inspection contract may not be worth the hit to your professionalism and integrity, especially when it does not insulate you from the costs of defending the suit and when the liability exposure can be handled by errors and omissions insurance which more and more jurisdictions are requiring.
NOTE: The information in this post and all other commentary provided by me in this forum is intended for general information purposes only and does not constitute, nor is it intended to constitute, legal advice.
For legal advice, you should always consult with the appropriate legal counsel in order to determine the laws that are applicable to your specific circumstances.
