Sams Hotel Group, LLC v. Environs, Inc.

Federal 7th Circuit Court
Civil Court
Case Number: 
No. 12-2979
Decision Date: 
May 31, 2013
Federal District: 
S.D. Ind., Indianapolis Div.
Dist. Ct. did not err in finding that limitation of liability clause contained in contract between plaintiff-owner of hotel and defendant-architectural firm to provide architectural services for construction of new hotel served to limit defendant’s damages in claim alleging that defendant breached said contract by providing poor quality services, even though $4.2 million judgment had been entered in plaintiff’s favor on said claim. Instant clause provided that defendant’s total liability from any breach of contract stemming from errors or omissions would be limited to $70,000 fee that defendant had received under said contract, and Ct. found that said clause applied under Indiana law, even though clause failed to explicitly refer to defendant’s own negligence, where instant case concerned two sophisticated commercial entities seeking to allocate risks between themselves.