Hurricane Sandy has blown through causing many people and businesses to lose power. As a result of the loss of power there have been many injuries and damages. People may trip and fall in darkened staircases, food in homes and grocery stores have gone bad without refrigeration, and car accidents may have occurred due to lack of traffic lights. Can the power companies be held liable for loss of power during a storm? Usually, the electric companies, such as Consolidated Edison, Long Island Power Authority, etc. cannot be held accountable for loss of power during a storm except under special circumstances.

Negligence and Contracts

The New York State Court of Appeals has held that the liability of a public utility must be limited to damages arising from the utility’s willful misconduct or gross negligence. Such is because under the terms of the rate schedule, the utility cannot be held liable for interruption of service due to the ordinary negligence of its agents and employees. The public utility does, however, remain liable for gross negligence. Such is based on the fact that most suppliers of electricity in New York, under the tariff or rate schedule filed with the Public Service Commission, have a provision which states that they:

[W]ill endeavor at all times to provide a regular and uninterrupted supply of service, but in case the supply of service shall be interrupted or irregular or defective or fail from causes beyond its control or through ordinary negligence of employees, servants or agents, the Company will not be liable therefore.

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