Discuss the relevant legal principle


Discuss the below:

Mega Corp hired an architect to design a new office-complex for its administrative staff. The architect, in turn, subcontracted part of the work to XYZ Engineering, an engineering firm.

XYZ attended at the site of the proposed new building, and working within its budget, competed certain tests. It realized, however, that further soils tests should be completed prior to preparing the designs and specifications.

XYZ contacted the architect, but the architect was very hesitant about spending the extra money on the additional tests suggested by the XYZ. Under pressure from the architect, XYZ completed the designs and specifications based upon available information (i.e., not completing the further soils tests). The new building was constructed, and five months later, structural damage occurred as a cumulative result of the building having slowly sunk into the ground in the north-west corner.

Mega Corp hired an independent firm to determine the cause of the problem. That firm confirmed additional soils tests would have revealed ground conditions that would have changed the design of the building (specifically, that portion of the design prepared by XYZ).

Q: What liabilities in tort law arise from the preceding set of facts? Discuss the relevant legal principle(s) and indicate a likely outcome.

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