Lawsuits and Subrogation

Hi Friends,

I’ve gotten a lot of questions about how lawsuits against architects work in the past.
For example, what happens when a consultant, like a structural engineer, makes an error which leads to significant monetary losses for the owner.

The owner will sue the architect, because their agreement is with the architect, not the engineer. However, the engineer will get pulled into the suit through subrogation.

Subrogation is a fancy word I just had a PM training meeting about and I thought I would go ahead and pass along that information here. You can get an overview of this word below: Subrogation Definition

You can also read more about Subrogation on page 1052 and in the index on pages 1136-1137 of the “Architect’s Handbook of Professional Practice”.

Hope this helps!
-Darion

But the section on page 1052 refers to the “waiver of subrogation”. It assumes that the owner has insurance to deal with overall risk and/or consequential damages, etc. and that part of that insurance is the waiver of subrogation which would stop the insurance company from suing to get the money they paid out back. The example above makes it would like subrogation would protect the architect and that the suit would go to the engineer…not sure I understand.