"The declining significance of privity has found its way to construction law."

So begins the 4th District Court of Appeal’s decision in Lynch v. Peter & Associates, Engineers, Geologists, Surveyors, Inc., 104 Cal.App.5th 1181 (2024). The case addresses the legal duty of care owed by construction professionals - specifically geotechnical consultants - to property owners with whom they are not contractual privity. The case reaffirms the Biakanja factors and signals the growing willingness of courts to impose liability beyond contract boundaries, especially in residential construction.

Factual Background
In April 2018, general contractor Grover Construction (Grover) hired geotechnical firm Peter & Associates, Engineers, Geologists, Surveyors, Inc. (“Peter”) to perform a limited inspection of a footing trench for a proposed addition to a single-family home in San Clemente, California owned by Gregory and Cheryl Lynch. The Peter firm’s scope was narrow and its fee modest - just $360.