H.R. Moch Co. v. Rensselaer Water Co.
Citation
247 N.Y. 160 (N.Y. Court of Appeals, 1928)
Facts
Rensselaer Water Co. had a contract with the City of Troy to supply water at adequate pressure for fire hydrants. When a fire broke out near H.R. Moch Co.’s warehouse, the water company failed to maintain sufficient pressure and the warehouse burned. Moch sued the water company in tort for negligence.
Issue
Whether a water company that contracts with a municipality to supply water owes a duty of care in tort to individual members of the public who are injured by the company’s failure to perform.
Holding
Judge Cardozo held that the water company owed no duty of care to the plaintiff and dismissed the tort claim.
Rule
A utility providing water to a municipality owes a duty only to the contracting municipality, not to individual members of the public; failure to perform a contract creating benefits for third parties does not give rise to tort liability absent a special relationship.