Monday, December 23, 2019

Maryland Court of Special Appeals Expands Premises Liability Duties to Condominium Associations


Damien A. Macias v. Summit Management, November 21, 2019 (Court of Special Appeals of Maryland)

Maryland Courts have traditionally imposed a legal duty on landlords to inspect, maintain, and keep safe the common areas of their properties for the benefit of invitees and social guests.  The Maryland Court of Special Appeals expanded that duty to condominium associations in a recently published opinion in Damian A. Macias v. Summit Management Inc.

This issue giving rise to the case originated on July 6, 2013 when eight-year-old Damien Macias (“Damien”) accompanied his mother and two younger siblings to the Waters House Condominium complex (“Waters House”), which was managed by Summit Management (“Summit”) (collectively, the “Condominium”), to visit his grandparents who owned a unit at Waters House.  While playing outside on the grounds of Waters House, Damien and his brother climbed on top of a community sign made of large stones.  While dismounting from the community sign, one of the large stones dislodged.  Damien fell to the ground and the stone fell on top of Damien, causing him serious injuries.  There was no sign or fencing surrounding the community sign indicating that it was off-limits.

Damien sued asserting negligence claims against the Condominium.  The Condominium filed a motion for summary judgment arguing, in part, that Damien’s legal status was that of a trespasser and was owed no duty except to refrain from “willful or wanton misconduct and entrapment.”  Damien countered arguing that he was an invitee because the community sign was located in the common area of the complex, and was therefore owed a duty by the Condominium to use reasonable care to ensure the sign was safe.  The trial court ruled Damien was a bare licensee (i.e., here, that Damien was only owed the same duties as a trespasser), but that even if Damien was an invitee, there was no evidence that the Condominium was on notice of the unsafe condition giving rise to Damien’s injuries.  Damien appealed to the Maryland Court of Special Appeals, asking the appellate court to find that Damien was an invitee when he played on the community sign and, therefore, owed a duty of care by the Condominium.

After looking to other states’ precedents on the issue and applying the Maryland landlord-tenant premises liability paradigm, the Court of Special Appeals held that condominium associations owe condominium owners and their social guests the same duty of care landlords owe to their tenants and social guests.  This holding was accompanied by a caveat, namely that condominium association may avoid liability in a negligence action by including an appropriate exculpatory clause in their condominium agreement.

The Court of Special Appeals also considered whether Damien’s legal status changed from an invitee to a trespasser when he climbed onto the community sign.  The Condominium argued that Damien lost his legal status as an invitee because there was nothing about the community sign that suggested, implied, or induced Damien (or the general public) into thinking that children may play on or climb the community sign.  The Court of Special Appeals disagreed, pointing to the fact that there was no evidence that the Condominium placed any signage, fencing, or other limits on which children could play in the common areas, which included the community sign.  The appellate court also dismissed the argument that the act of climbing a climbable object transformed Damien’s legal status, opining that it is conceivable that children, such as Damien, would climb a stone sign that blends naturally into the grounds of the common areas of the complex.

Although the Court of Special Appeals overturned the findings of the trial court with respect to Damien’s legal status on the property, the award of summary judgment was upheld on the ground that the Condominium lacked the requisite knowledge of the dangerous condition or defect in the community sign that caused Damien to fall and sustain injuries.  Accordingly, the Condominium prevailed on appeal.

The precedent set by this new opinion will undoubtedly impose additional liability concerns for condominium associations and their respective liability and casualty insurers.  In order to best defend future claims, such as Damien’s, condominium associations should consider taking two preemptive steps.  First, condominium associations should consider increasing or amending the signage and fencing in the common areas of their properties to expressly delineate areas that should not be accessed by the general public.  Second, condominium associations would be wise to supplement or revise their condominium agreements to include strong exculpatory clauses to have their condominium owners release and hold harmless the condominium association from negligence actions for injuries claimed by invitees and social guests occupying the common areas of the condominium complexes.

-Benjamin Beasley, Associate Attorney 

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