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Today in LA, May. 16

AIA|LA Editorial: No Consequential Damages Clauses as a Defense

Last Updated: August 25, 2010

More often, owners are looking to recover lost profits, delay costs, and diminution in value from design professionals. Consequential damages such as these do not follow immediately from a breach of contract; rather, they are the consequences of the breach. But to be recoverable, consequential damages must be contemplated by the parties at the time of contracting. By inserting a "no consequential damages" clause into the contract, a design professional may protect themselves by demonstrating that the parties contemplated the risks and have agreed to allocate the risks away from the design professional.

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