Massachusetts SJC Rules “Consent to Settle” Provisions Enforceable in Professional Liability Insurance Policies
by Jon C. Cowen
On December 16, 2019, in the case of Rawan v. Continental Casualty Company, the Massachusetts Supreme Judicial Court (SJC) issued an important decision affirming the right of design professionals, and their insurers, to include a “consent to settle” provision in professional liability policies. Donovan Hatem, LLP had filed a so-called amicus (friend of the court) brief in the case, on behalf of the American Council of Engineering Companies of Massachusetts (ACEC/ MA) and the Massachusetts Chapter of the American Institute of Architects (AIA/MA).
In his letter to the editor, David discusses how a previously written article, “Fixing Construction’s Fixed-Price Condundrum,” highlighting that fixed-price procurement used on design-build and P3 projects negatively impacts contractors, has major significance for design professionals as well. David argues that liability issues arising for architects and engineers working on projects with design-build and P3 delivery methods with fixed-price procurement combined with increased unreasonable and imbalanced contractual risk allocation will render these project delivery methods unsustainable.Read More