No duty to innovate: California Supreme Court rejects new negligence theory - Daily Journal
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California's top court just ruled drug makers have no legal duty to invent new treatments — a decision that redraws the line between innovation and liability.
Tort LawPrincipal-Agent ProblemIncentive TheoryDuty of Care
Theory Briefing
- The California Supreme Court rejected a novel legal theory that would have forced drug manufacturers to develop and commercialize new products.
- Imposing a "duty to innovate" would have made companies liable for treatments they never created — a first-of-its-kind negligence claim.
- The ruling draws a sharp boundary between what tort law can demand and what it cannot: courts can police bad products, but not compel new ones.
- The decision has broad implications for pharmaceutical R&D, since liability risk is a key driver of what drugs companies choose to pursue.