Wednesday, August 21, 2013

Colorado Supreme Court clarifies the scope of the Colorado Premises Liability Act

In Larrieu v. Best Buy Stores, L.P., Case No. 2013 CO 38 (June 24, 2013), the Colorado Supreme Court rejected the argument that the premises liability statute applies only to those activities and circumstances that are “directly or inherently related to the land.” In response to a certified question from the U.S. 10th Circuit Court of Appeals, the Court held that the premises liability statute applies to conditions, activities, and circumstances on the property that the landowner is liable for in its legal capacity as a landowner.  The Court set out a two-part fact specific case-by-case inquiry for determining whether the premises liability act applies to a given circumstance: (a) whether the plaintiff’s alleged injury occurred while on the landowner's real property, and (b) whether the alleged injury occurred by reason of the property’s condition or as a result of activities conducted or circumstances existing on the property.

In this case, the plaintiff brought a truck with an attached trailer to a Best Buy store to pick up a freezer he had purchased the previous day.  The plaintiff and a Best Buy employee removed the trailer’s tailgate and began carrying it away from the trailer. As the plaintiff walked backwards, he tripped over a curb and fell when the employee carrying the tailgate kept carrying it forward towards the curb. The tailgate landed on top of the plaintiff causing a compression fracture of his lumbar spine.

The trial court granted summary judgment in favor of the defendant finding that even if the employee had an obligation to properly guide the plaintiff as he walked backwards with the heavy gate, his failure to do so was not an activity inherently related to the land so as to give rise to recovery under the premises liability statute.  The Supreme Court rejected this analysis finding that the premises liability statute is not restricted solely to activities and circumstances directly or inherently related to the land since that restriction does not appear in the statutory language. Instead, the statute uses the phrase "activities conducted or circumstances existing on such property."

The Court also rejected the contention that the premises liability statute covers essentially any tort that occurs on the property of another, finding that this broad interpretation would render much of the statute superfluous.  The statute contains language limiting its scope to injuries caused by “the condition of [the landowner’s] property, or activities conducted or circumstances existing on such property.” 

The Court held that the circumstances of this case fell squarely within the purview of the premises liability statute because the plaintiff alleged that the defendant, in its capacity as a landowner, was responsible for the activities conducted and conditions on its premises, including the process of assisting a customer with loading a freezer he had purchased from the retailer on to his truck.  Thus, the plaintiff alleged that he was injured by reason of the condition of defendant’s property or activities conducted or circumstances existing on such property.

The Court noted that its interpretation of the Premises Liability Act harmonizes the Legislature’s stated purposes of “promot[ing] . . . responsibility by both landowners and those upon the land” and “creat[ing] a legal climate which will promote private property rights and commercial enterprise and will foster the availability and affordability of insurance.”  At the same time, the interpretation of the statute does not interfere with the Legislature’s intent to “protect landowners from liability in some circumstances when they were not protected at common law.”  The Court gave examples of this protection including the statute’s requirement that landowners have actual knowledge of dangers on the land to be liable to licensees for injuries caused by the dangers. 



Lee Katherine Goldstein is an appellate lawyer with the Denver law firm of Fairfield and Woods, PC. 

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