Apex Directional Drilling, LLC v. SHN Consulting Engineers & Geologists, Inc.
Opinion
Lead Opinion
Seeborg, J.
ORDER DENYING MOTION TO DISMISS
I. BACKGROUND
This litigation emanates from problems associated with a municipal sewage construction project. In April of 2013, the City of Eureka, California publicly solicited bids from contractors for the instalLttion of a new wastewater pipeline by use of a technique known as horizontal directional drilling (“HDD”). 2 SHN Consulting Engineers & Geologists, Inc. (“SHN”) contracted separately with Eureka to serve as lead engineer and project manager. Part of SHN’s job was to conduct geological studies of the site and, based on its findings, to prepare plans, reports, and specifications describing the project. Certain of SHN’s descriptions of the project, including a Geotechnical Baseline Report (“GBR”), were furnished to potential bidders. Eureka and SHN intended that contractors would rely on the reports and drawings to estimate the necessary inputs for completing the work under the represented conditions and to determine whether and how much to bid for the project. In meetings with prospective bidders, SHN representatives orally affirmed that the findings of the GBR and other materials were accurate.