The question of legal liability for injury or damage arising out of space activities is presently unreseolved. One of the reasons stems from the unresolved legal status of space itself. How far up or how far out national sovereignty extends is still an open question.
Dow, H. Cushman
"Legal Liability Resulting from Space Activities,"
California Western International Law Journal: Vol. 1
, Article 2.
Available at: http://scholarlycommons.law.cwsl.edu/cwilj/vol1/iss1/2