The following legal article provided as a public service by W. Adam Mandelbaum, Esquire, Attorney at Law who has his law practice in Oyster Bay, New York.  Mr. Mandelbaum can be reached by call (516) 624-0240 or by going to his website:  http://justiceneversleeps.net.

"Read the Fine Print when Getting an Engineer's Report"  --  Before purchasing a house, it's a good idea to get an engineer's report.  It's an even better idea to read the contract with the engineering firm prior to engaging them.  You could be in for a nasty surprise like the people in the case of Mancuso v. Rubin, decided June 10, 2008.

The buyer hired the engineers to conduct a prepurchase inspection of the home and prepare a report.  The engineer's agreement with the buyer stated that if the engineers were found liable for loss or damage arising out ot the inspection and report, liability was limited to $ 200 -- the fee paid for the services.

The inspection report concluded, inter alia, that no active termites or termite action was apparent, but added that it was not a warranty or a guaranty.  The buyer alleged that after closing, she discovered extensive termite infestation and damage.  The buyer sued for damages in excees of the $ 200.

Court basically said -- Tough!  The contract was unequivocal regarding liability limitation.  If engineers were grossly negligent, they would not have been able to limit the damages, but the court made no finding of gross negligence.