Legal Definitions - extraordinary risk

An extraordinary risk refers to a danger or peril that is highly unusual, unexpected, and goes beyond the normal or foreseeable hazards associated with a particular activity, product, or circumstance. It is a risk that is not inherent or commonly anticipated, but rather arises from an external, unforeseen, or highly atypical event or condition. Such risks often require special precautions or disclosures due to their unusual nature and potential for severe consequences.

• Example 1 (Construction Project): A construction company is building a new high-rise in a metropolitan area. While excavating the foundation, they unexpectedly discover a previously uncharted, active geological fault line directly beneath the proposed structure. This fault line poses a significant and unpredictable risk of seismic activity that was not accounted for in initial surveys or standard building codes for the region.

  Explanation: The discovery of an uncharted, active geological fault line represents an extraordinary risk because it is an highly unusual and unforeseen danger that goes beyond the typical, foreseeable risks of urban construction, such as encountering common rock formations or utility lines. It introduces a severe and unexpected hazard that fundamentally alters the safety profile of the project.

• Example 2 (Product Liability): A consumer purchases a new, well-regarded brand of electric bicycle. Unbeknownst to the manufacturer, a rare batch of batteries from a third-party supplier contained a unique, microscopic manufacturing defect that, under specific and unusual environmental conditions (e.g., a sudden, extreme drop in temperature followed by rapid warming), could cause the battery to catastrophically fail and explode without warning.

  Explanation: The risk of a battery exploding due to a unique, microscopic defect triggered by unusual environmental conditions is an extraordinary risk. It is not a common or expected hazard of using an electric bicycle, nor is it a defect that would be easily detectable through standard quality control. It arises from an unforeseen and highly atypical manufacturing flaw combined with specific external factors.

• Example 3 (Commercial Lease): A small business leases a retail space in an older building. After they move in, it is discovered that the building's ventilation system, unknown to both the landlord and tenant, was contaminated years ago by a highly toxic, slow-acting industrial chemical spill from an adjacent, long-abandoned factory. This contamination poses a severe, long-term health risk to occupants that was not apparent during initial inspections.

  Explanation: The risk of severe health hazards from a hidden, slow-acting industrial chemical contamination originating from an external, historical source is an extraordinary risk. It is an unusual and unforeseen danger that goes far beyond the typical risks associated with leasing commercial property, such as minor structural issues or routine maintenance. It represents a severe, hidden peril not inherent to the normal use of the property.