WSA Group, PE-PC v. DKI Eng'g & Consulting USA PC
WSA Group, PE-PC, an appellant-respondent, sued DKI Engineering & Consulting USA PC, a respondent-appellant, for negligent supervision and breach of contract arising from a subcontract to inspect state bridges. The dispute stemmed from a defendant's employee falsifying an inspection report, leading to costs for the plaintiff that the defendant refused to indemnify. The Supreme Court partially granted defendant's motion to dismiss, deeming the negligent supervision and part of the breach of contract claims time-barred under a three-year professional malpractice statute of limitations. However, it allowed the contractual indemnification claim related to reimbursement to DOT under a six-year breach of contract limitation. The Appellate Division affirmed that the malpractice-related claims were time-barred, accruing upon the completion of the contract in May 2014. Crucially, the Appellate Division reversed the dismissal of the plaintiff's claim for counsel fees and investigation costs, finding that this aspect of the indemnification claim was not subject to the three-year malpractice limitation and fell within the broad scope of the contractual indemnification agreement.