Section 22 Measure of Damages in General

• Library: Prof Liability 2005

Claims against design professionals invariably raise myriad issues relating to the measure of damages. Typically, there will be claims for:

• extra or additional construction costs
• remediation costs
• “consequential damages” such as lost profits, extra rents, and delay damages; and
• a whole host of others

The general rule of law on the issue of damages relating to real property is set forth in Business Men’s Assurance Co. of Am. v. Graham, 891 S.W.2d 438 (Mo. App. W.D. 1994).

On appeal in Graham was a $5.2 million award against the architect in favor of the owner of the BMA building in Kansas City. The exterior design included marble panels that eventually failed and started to fall off the building. On inspection by another architectural firm, it was discovered that there were numerous problems with installation and design. The panels were removed at a cost of $4 million, and the plaintiff filed suit for negligence and breach of contract, asking for cost of repair, loss of use of money, and other consequential damages.

The defendant argued that the proper measure of damages was the well-established rule...