Michigan’s Premises Liability Laws Change: What Business Owners Need to Know About ‘Open and Obvious’ Dangers

In Michigan, businesses have a legal duty to maintain a safe environment for customers. A recent Michigan Supreme Court ruling has significantly altered premises liability law, particularly concerning “open and obvious” dangers. This change impacts how business owners must protect visitors from potential hazards on their property. Understanding these changes is crucial for Michigan business owners to mitigate risk and ensure compliance.

What is Premises Liability?

Premises liability refers to the legal responsibility of property owners to ensure their property is reasonably safe for visitors. In Michigan, this duty extends to various types of properties, including residential, commercial, and public spaces. Property owners must actively manage their premises to prevent accidents, and if a visitor is injured due to a hazard that the owner should have corrected or warned about, the owner may be held liable for damages.

Types of Visitors and Duty of Care:

Michigan law recognizes different categories of visitors, each entitled to a different level of protection:

Invitees: Individuals invited onto the property for commercial purposes, such as customers in a store. Property owners owe the highest duty of care to invitees, requiring regular inspections and the correction or warning of known dangers.
Licensees: Those who enter the property for their own purposes but with the owner’s permission, like social guests. Property owners must warn licensees of known hazards.
Trespassers: Individuals who enter the property without permission. Property owners owe the least duty of care to trespassers, generally only needing to refrain from willful or wanton harm.

The “Open and Obvious” Doctrine: A Shift in Legal Landscape

For over two decades, the “open and obvious” doctrine served as a significant defense for business owners in premises liability cases. This doctrine stated that if a hazard was considered “open and obvious,” the owner had no obligation to warn visitors or take steps to mitigate the risk. The injured party was assumed to bear responsibility for their own safety.

However, on July 28, 2023, the Michigan Supreme Court overturned this doctrine in the cases of Kandil-Elsayed v. F & E Oil, Inc. and Pinsky v. Kroger Co. of Michigan. This decision eliminates the “open and obvious” doctrine as a complete defense in premises liability cases, marking a significant shift in Michigan law.

Key Changes and Implications for Business Owners

The overturning of the “open and obvious” doctrine has several important implications for Michigan business owners:

Heightened Duty of Care: Business owners are now responsible for identifying and addressing potential hazards, even those that may seem obvious to visitors. This includes taking proactive measures to eliminate dangers or provide clear warnings.
Comparative Negligence: Premises liability cases will now be evaluated under a comparative negligence model. Courts will assess the actions (or lack thereof) of both the business owner and the injured party to determine fault and allocate liability accordingly.
Jury Determination: Whether a dangerous condition was “open and obvious” is no longer a question of duty for a judge to decide, but rather a question of breach to be decided by a jury. This means more cases will likely proceed to trial.
Increased Litigation: Experts predict an increase in premises liability cases due to the elimination of the “open and obvious” defense. Property owners and insurance companies should be prepared to defend against these claims.

Proactive Steps for Business Owners to Mitigate Risk

In light of these changes, Michigan business owners should take the following proactive steps to mitigate risk and ensure the safety of their premises:

Comprehensive Risk Assessment: Conduct thorough inspections of both indoor and outdoor areas to identify potential hazards, such as tripping hazards, slippery surfaces, and inadequate lighting.
Hazard Remediation: Take prompt action to repair dangerous conditions or provide adequate warnings. This may include fixing uneven surfaces, clearing snow and ice, and posting warning signs.
Documentation and Record Keeping: Maintain detailed records of inspections, safety measures, and any incidents that occur. This documentation can be crucial in defending against liability claims.
Employee Training: Educate staff on identifying potential hazards, reporting procedures, and safety protocols.
Insurance Review: Re-evaluate insurance coverage to ensure adequate protection against premises liability claims.

Understanding Negligence and Reasonable Care

In Michigan, proving negligence is essential for a successful premises liability claim. The injured party must demonstrate that the property owner failed to exercise reasonable care in maintaining the property, leading to the injury. This involves showing that:

The property owner had a duty to ensure the safety of the premises.
The owner breached this duty by failing to act as a reasonably prudent person would.
This breach directly caused the injury.
The injury resulted in compensable damages.

The Importance of Legal Counsel

Navigating Michigan’s premises liability laws can be complex. Business owners should consult with legal counsel to ensure they understand their responsibilities and are taking appropriate steps to protect themselves from liability. A knowledgeable attorney can provide guidance on risk management, insurance coverage, and defense strategies in the event of a claim.

Recent Developments: Condo Associations and Premises Liability

In July 2024, the Michigan Supreme Court expanded premises liability further by ruling that a condominium association can be sued by a co-owner who sustains injuries on common elements due to the association’s negligence. This decision clarifies that condominium co-owners are considered invitees when using common areas, imposing a duty on the association to exercise reasonable care in protecting them from dangerous conditions.

Conclusion

The changes to Michigan’s premises liability laws represent a significant shift in the legal landscape for business owners. By understanding these changes and taking proactive steps to mitigate risk, businesses can create a safer environment for visitors and protect themselves from potential liability claims. Staying informed and seeking legal counsel are essential for navigating these evolving laws and ensuring compliance.