This article will explore recent case law and trends involving when tort liability attaches for injuries or damages sustained by non-parties to a contract.
In assessing whether a duty should be extended to a non-party to a contract, the Court of Appeals in Palka v. Servicemaster Mgt. Servs. Corp.1 advised that “[c]ourts traditionally and as part of the common law process fix the duty point by balancing factors, including the reasonable expectation of parties and society generally, the proliferation of claims, the likelihood of unlimited or insurer-like liability, disproportionate risk and reparation allocation, and public policies affecting the expansion or limitation of new channels of liability.”
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