Minimizing Tort Liability With The Right Terms

Law360, New York (February 28, 2012, 12:36 PM EST) -- Contractual risk-allocation clauses can be used in various contexts to minimize tort liabilities. A recent consumer case in the U.S. Court of Appeals for the Third Circuit provides one such example.

Greenspan v. ADT Security Services Inc. involved property damage claims resulting from a fire at the plaintiffs’ Pennsylvania residence.[1] The plaintiffs sued ADT for breach of contract and negligence, claiming that ADT insufficiently repaired and monitored their fire alarm system.

The district court granted summary judgment in ADT’s favor, finding that the contractual risk-allocation provisions...
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