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Remedies Keyed to Kovacic-Fleischer, 8th
Terracon Consultants Western, Inc. v. Mandalay Resort Group
Citation:
206 P.3d 81 (2009)Facts
Mandalay Resort Group managed the construction of the approximately one billion dollar Mandalay Resort and Casino in Las Vegas and hired various subcontractors to complete the project. Mandalay entered into a written contract with Terracon under which Terracon agreed to provide geotechnical engineering advice about subsurface soil conditions and recommended a foundation design for the property. Terracon’s work was limited to providing professional engineering advice and did not involve physical construction. Mandalay also engaged Klai-Juba and Lochsa, apparently through oral arrangements, to provide architectural and engineering services by designing parts of the resort structure, though neither firm participated in physical construction. Terracon prepared a geotechnical report with foundation design recommendations based on soil analysis and anticipated building weight, predicting a certain amount of settling. However, the actual settling exceeded Terracon’s projections. Clark County determined the settling presented a potential danger to structural integrity and required Mandalay to repair and reinforce the foundation before proceeding with construction, causing economic losses to Mandalay.
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