MICHAEL F. CAVANAGH, J.
Plaintiff, an employee of an electrical subcontractor, was injured at a construction site when several cement boards fell on him. The boards had been leaned against a wall by employees of defendant, a carpentry and drywall subcontractor, which, like plaintiff's employer, had been hired by a general contractor to work on the construction project. Plaintiff sued defendant for negligence and defendant moved for summary disposition, asserting that, under Fultz v. Union-Commerce Assoc., 470 Mich. 460, 469-470, 683 N.W.2d 587 (2004), and its progeny, it owed no duty to plaintiff that was "separate and distinct" from defendant's contractual duties to the general contractor. The trial court granted defendant's motion and the Court of Appeals affirmed. We granted plaintiff's application for leave to appeal. Loweke v. Ann Arbor Ceiling & Partition Co., Inc., 488 Mich. 876, 788 N.W.2d 461 (2010).
We take this opportunity to clarify Fultz's "`separate and distinct' mode of analysis," 470 Mich. at 467, 683 N.W.2d 587, and hold that a contracting party's assumption of contractual obligations does not extinguish or limit separately existing common-law or statutory tort duties owed to noncontracting third parties in the performance of the contract. Davis v. Venture One Constr., Inc., 568 F.3d 570, 575, 577 (C.A.6, 2009).
Plaintiff, Richard Loweke,
Plaintiff sued defendant, alleging that defendant was negligent in stacking the cement boards in an unstable position, creating a new hazard that previously did not exist. Relying primarily on Fultz, defendant moved for summary disposition, asserting that it was not liable to plaintiff in tort because plaintiff's allegations were based on an assertion that defendant negligently performed its contractual obligations to the general contractor and, thus, were not based on any separate and distinct duty that defendant owed to plaintiff. To support its argument, defendant cited its contract with Walbridge, which held defendant responsible for "unloading, moving, lifting, protection, securing and dispensing of its materials and equipment at the Project Site." Defendant asserted that it had not violated any duty that was independent of the contract because, in its view, the management and storage of its materials was a subject of its contract with Walbridge. The trial court agreed with defendant and granted its motion for summary disposition, reasoning that what had happened was within defendant's obligations under the contract. Plaintiff appealed.
The Court of Appeals affirmed. The Court explained that, under Fultz, a "court must look at the terms of the contract and determine whether the defendant's action was required under the contract." Loweke v. Ann Arbor Ceiling & Partition Co., Inc., unpublished opinion per curiam of the Court of Appeals, issued April 22, 2010 (Docket No. 289451), p. 3, 2010 WL 1629151. Because defendant was required under its contract with Walbridge to secure the cement board at the project site, the Court reasoned that plaintiff's claim was based on defendant's negligence in performing its obligations under the contract and that the alleged hazard had not presented any unique risk that was not contemplated by the contract. Finally, the Court claimed that its holding was supported by two peremptory orders of this Court: Mierzejewski v. Torre & Bruglio, Inc., 477 Mich. 1087, 729 N.W.2d 225 (2007), and Banaszak v. Northwest Airlines, Inc., 477 Mich. 895, 722 N.W.2d 433 (2006). We granted plaintiff's application for leave to appeal. Loweke, 488 Mich. 876, 788 N.W.2d 461.
This Court reviews de novo a trial court's decision on a motion for summary disposition. In re Egbert R. Smith Trust, 480 Mich. 19, 23, 745 N.W.2d 754 (2008). This Court also reviews de novo questions of law. Byker v. Mannes, 465 Mich. 637, 643, 641 N.W.2d 210 (2002). Whether a defendant is under a legal obligation to act for a plaintiff's benefit—i.e., whether a defendant owes a particular plaintiff a duty—is a question of law. Dyer v. Trachtman, 470 Mich. 45, 49, 679 N.W.2d 311 (2004); Valcaniant v. Detroit Edison Co., 470 Mich. 82, 86, 679 N.W.2d 689 (2004).
To establish a prima facie case of negligence, a plaintiff must prove the following elements: (1) the defendant owed the plaintiff a legal duty, (2) the defendant breached the legal duty, (3) the plaintiff suffered damages, and (4) the defendant's breach was a proximate cause of the plaintiff's damages. Roulo v. Auto. Club of Mich., 386 Mich. 324, 328, 192 N.W.2d 237 (1971). Accordingly, a defendant is not liable to a plaintiff unless the defendant owed a legal duty to the plaintiff. Beaty v. Hertzberg & Golden, PC, 456 Mich. 247, 262, 571 N.W.2d 716 (1997). In this case,
In Fultz,
Before Fultz, when a plaintiff pleaded a tort arising out of a defendant's breach of contractual obligations, Michigan courts historically drew a distinction between "misfeasance" of a contractual obligation—i.e., "active misconduct"—and "nonfeasance" of a contractual obligation—i.e., "passive inaction," Williams v. Cunningham Drug Stores, Inc., 429 Mich. 495, 498, 418 N.W.2d 381 (1988), or "failing to do what one has promised to do in the absence of a duty to act apart from the promise made," Ferrett v. Gen. Motors Corp., 438 Mich. 235, 245 n. 11, 475 N.W.2d 243 (1991) (quotation marks and citation omitted). Under this dichotomy, a contracting party generally was not liable in tort for the complete nonperformance of a contractual obligation, or nonfeasance, whereas defective performance of a contractual obligation, or misfeasance, could support an action in tort or contract. Rinaldo's Constr., 454 Mich. at 83-84, 559 N.W.2d 647; Ferrett, 438 Mich. at 245 n. 11, 475 N.W.2d 243; Chase v. Clinton Co., 241 Mich. 478, 486, 217 N.W. 565 (1928). As this Court has stated, however, the fundamental principle distinguishing a cause of action in tort from one in contract is the concept of duty. Rinaldo's Constr., 454 Mich. at 83, 559 N.W.2d 647. Accordingly, in cases of nonfeasance, a defendant who fails to perform his contractual duties is ordinarily not liable in tort because, as a general tort rule, "there is no duty that obligates one person to aid or protect another." Williams, 429 Mich. at 498-499, 418 N.W.2d 381.
In contrast, cases that recognized a cause of action in tort arising out of the negligent performance of a contract by a defendant "generally involve[d] a separate and distinct duty imposed by law for the benefit of the plaintiff that provide[d] a right to maintain [the] action without regard to whether there was a contractual relationship between the plaintiff and the defendant." Ferrett, 438 Mich. at 245, 475 N.W.2d 243. This separate and distinct duty "imposed by law" could arise by operation of a statute or under the "basic rule of the common law, which imposes on every person engaged in the prosecution of any undertaking an obligation to use due care, or to so govern his actions as not to unreasonably endanger the person or property of others." Clark, 379 Mich. at 261, 150 N.W.2d 755; see, also, Rinaldo's Constr., 454 Mich. at 84, 559 N.W.2d 647; Parker v. Port Huron Hosp., 361 Mich. 1, 11, 105 N.W.2d 1 (1960) ("It should be noted that ... at the common law ... the general rule has been that one is liable for his negligence or tortious acts."). Thus, in cases alleging misfeasance of contractual obligations, although there was a contract, it "merely create[d] the state of things which furnishe[d] the occasion of the tort." Clark, 379 Mich. at 261, 150 N.W.2d 755.
This Court, however, has recognized that determining whether an action in tort can arise out of a contractual promise is often largely semantic and difficult to discern. Rinaldo's Constr., 454 Mich. at 83, 559 N.W.2d 647; Hart, 347 Mich. at 564-565, 79 N.W.2d 895. In Fultz, a majority of this Court recognized the often "slippery distinction" between misfeasance and nonfeasance of contractual obligations and attempted to disentangle the misfeasance/nonfeasance dichotomy by shifting the focus to whether the particular defendant owed a duty to the plaintiff. Fultz, 470 Mich. at 467, 683 N.W.2d 587 (quotation marks and citation omitted). Noting that this Court had described a tort action arising from the misfeasance of contractual obligations as a "`violation of a legal duty separate and distinct from the contractual obligation,'" the Fultz majority explained that this "`separate and distinct' definition of misfeasance" offered better guidance in determining whether a negligence action based on a contract and brought by a third party could lie. Id., quoting Rinaldo's Constr., 454 Mich. at 84, 559 N.W.2d 647. Accordingly, after Fultz, courts were to forgo the misfeasance/nonfeasance distinction and, instead, employ a "`separate and distinct' mode of analysis" to determine the threshold question: "whether the defendant owed a duty to the plaintiff that is separate and distinct from the defendant's contractual obligations." Fultz, 470 Mich. at 467, 683 N.W.2d 587; see, also, 1 Torts: Michigan Law and Practice (2d ed.), § 10.18, p.10-24. Under this analysis, an action would lie in contract if it was based solely on a defendant's failure or refusal to perform a contractual promise. In contrast, an action could lie in either contract or in tort if a "defendant negligently performs a contractual duty or breaches a duty arising by implication from the relation of the parties created by the contract...." Fultz, 470 Mich. at 469, 683 N.W.2d 587. In the latter category of cases, however, no tort liability would arise "for failing to fulfill a promise in the absence of a duty to act that is separate and distinct from the promise made." Id. at 470, 683 N.W.2d 587.
Applying these principles, Fultz concluded that the plaintiff, who had slipped on a snow- and ice-covered parking lot, did not have a negligence cause of action against
Although Fultz clearly stated that a defendant's legal duty to act must arise separately and distinctly from a defendant's contractual obligations, Fultz's "separate and distinct mode of analysis" has been misconstrued to, in essence, establish a form of tort immunity that bars negligence claims raised by a noncontracting third party. This is due, in part, to two orders from this Court, Mierzejewski, 477 Mich. 1087, 729 N.W.2d 225, and Banaszak, 477 Mich. 895, 722 N.W.2d 433. Courts have misconstrued Fultz's test requiring a "separate and distinct duty" by erroneously focusing on whether a defendant's conduct was separate and distinct from the obligations required by the contract or whether the hazard was a subject of or contemplated by the contract. See, e.g., Carrington v. Cadillac Asphalt, LLC, unpublished opinion per curiam of the Court of Appeals, issued February 9, 2010 (Docket No 289075), 2010 WL 446096; Hatcher, unpub. op. at 5; see, also, 1 Torts: Michigan Law and Practice, § 10.18, p. 10-25. This interpretation is incorrect because, in analyzing tort actions based on a contract and brought by a noncontracting third party, Fultz directed courts to focus on "[w]hether a particular defendant owes any duty at all to a particular plaintiff," Fultz, 470 Mich. at 467, 683 N.W.2d 587 (emphasis added), and, thus, generally required an inquiry into whether, aside from the contract, "a defendant is under any legal obligation to act for the
Thus, in determining whether an action in tort will lie, Fultz recast the test to focus on whether any legal duty independent of the contract existed. Fultz, 470 Mich. at 466, 683 N.W.2d 587. Notably, in requiring courts to focus on whether a defendant owed a legal duty to the plaintiff, Fultz directed courts to utilize the "`separate and distinct' definition of misfeasance." Id. at 467, 683 N.W.2d 587. In shifting the focus to this Court's "separate and distinct definition of misfeasance," however, Fultz did not modify the aforementioned historical understandings of this Court's "separate and distinct mode of analysis." Instead, Fultz favorably cited Rinaldo's Constr., 454 Mich. at 84, 559 N.W.2d 647, and Ferrett, 438 Mich. at 245, 475 N.W.2d 243, which, like Fultz, focused on whether a legal duty independent of a contract existed, rather than whether defendant's conduct was separate and distinct from the tasks required by the contract or whether the hazard was contemplated by the contract. Davis, 568 F.3d at 576.
Determining whether a duty arises separately and distinctly from the contractual agreement, therefore, generally does not necessarily involve reading the contract, noting the obligations required by it, and determining whether the plaintiff's injury was contemplated by the contract. Id. Instead, Fultz's directive is to determine whether a defendant owes a noncontracting, third-party plaintiff a legal duty apart from the defendant's contractual obligations to another. Fultz, 470 Mich. at 461-462, 683 N.W.2d 587. As this Court has historically recognized, a separate and distinct duty to support a cause of action in tort can arise by statute, Clark, 379 Mich. at 261, 150 N.W.2d 755, or by a number of preexisting tort principles, including duties imposed because of a special relationship between the parties, see, e.g., Williams, 429 Mich. at 499, 418 N.W.2d 381, and Fultz, 470 Mich. at 468 n. 4, 683 N.W.2d 587, and the generally recognized common-law duty to use due care in undertakings, see, e.g., Clark, 379 Mich. at 261, 150 N.W.2d 755; Hart, 347 Mich. at 564, 79 N.W.2d 895. As this Court has explained:
Stated another way, under the "separate and distinct mode of analysis," "`[e]ntering into a contract with another pursuant to which one party promises to do something does not alter the fact that there [exists] a preexisting obligation or duty to avoid harm when one acts.'" Rinaldo's Const, 454 Mich. at 84, 559 N.W.2d 647, quoting Prosser & Keeton, Torts (5th ed.), § 92, pp. 656-657; see, also, Davis, 568 F.3d at 575, 577.
Thus, under Fultz, while the mere existence of a contractual promise does not ordinarily provide a basis for a duty of care to a third party in tort, "the existence of a contract [also] does not extinguish duties of care otherwise existing...." 1 Torts: Michigan Law and Practice, § 10.18, p.10-25; see, also, Fultz, 470 Mich. at 468-469, 683 N.W.2d 587. Fultz did not extinguish the "simple idea that is embedded deep within the American common law of torts ...: if one `having assumed to act, does so negligently,' then liability exists as to a third party for `failure of the defendant to exercise care and skill in the performance itself.'" Davis, 568 F.3d at 575, quoting Hart, 347 Mich. at 564, 79 N.W.2d 895.
In summary, "[w]hether a particular defendant owes any duty at all to a particular plaintiff [in tort]," Fultz, 470 Mich. at 467, 683 N.W.2d 587 (emphasis added), is generally determined without regard to the obligations contained within the contract, Davis, 568 F.3d at 577. See, also, Churchill v. Howe, 186 Mich. 107, 114, 152 N.W. 989 (1915) (explaining that although a tort can grow out of a contract, in general, a tort is a "wrong independent of a contract"). Accordingly, with the aforementioned principles in mind, we clarify that when engaging in the "separate and distinct mode of analysis" in Fultz's analytical framework, see 470 Mich. at 469-470, 683 N.W.2d 587, courts should not permit the contents of the contract to obscure the threshold question of whether any independent legal duty to the noncontracting third party exists, the breach of which could result in tort liability. Instead, in determining whether the action arises in tort, and thus whether a separate and distinct duty independent of the contract exists, the operative question under Fultz is whether the defendant owed the plaintiff any legal duty that would support a cause of action in tort, including those duties that are imposed by law.
Unlike the plaintiff's cause of action in Fultz, 470 Mich. at 468-469, 683 N.W.2d 587, plaintiff's cause of action in this case was not brought solely on the basis of defendant's failure to perform its contractual obligations to the general contractor. Instead, plaintiff claims that defendant breached the common-law duty to exercise reasonable care and avoid harm when one acts. Clark, 379 Mich. at 261, 150 N.W.2d 755; Rinaldo's Constr., 454 Mich. at 84, 559 N.W.2d 647. Defendant's motion for summary disposition, however, was raised and decided on the basis of a misinterpretation of Fultz. Specifically, defendant's motion was brought exclusively under the erroneous belief that defendant owed no duty to plaintiff because defendant's performance and the hazards associated with that performance were the subject of defendant's contract with the general contractor. Because defendant's motion was brought solely under the mistaken belief that Fultz extinguished preexisting common-law duties, we need not and do not preemptively decide whether this
Under Fultz, a contracting party's assumption of contractual obligations does not extinguish or limit separate, preexisting common-law or statutory tort duties owed to noncontracting third parties in the performance of a contract. Accordingly, we clarify that when engaging in Fultz's "separate and distinct mode of analysis," courts should not permit the contents of the contract to obscure the proper initial inquiry: whether, aside from the contract, the defendant owed any independent legal duty to the plaintiff. In this case, defendant—by performing an act under the contract—was not relieved of its preexisting common-law duty to use ordinary care in order to avoid physical harm to foreseeable persons and property in the execution of its undertakings. That duty, which is imposed by law, is separate and distinct from defendant's contractual obligations with the general contractor. Accordingly, we reverse the judgment of the Court of Appeals and remand this case to the trial court for further proceedings that are consistent with this opinion.
ROBERT P. YOUNG, Jr., C.J., MARILYN J. KELLY, STEPHEN J. MARKMAN and MARY BETH KELLY, JJ., concur.
DIANE M. HATHAWAY, J., concurs.
ZAHRA, J., did not participate because he was on the Court of Appeals panel in this case.
HATHAWAY, J.
I concur in the result only.