New Developments in Landlord Premises Liability

In a recent decision, Bailey v. Schaff,  the Michigan Court of Appeals issued a landmark ruling concerning the obligations that landlords owe to persons on the landlord’s premises. The Court ruled that a landlord has an obligation to call the police once notified of a dangerous situation. The landlord may be liable for damages to a person injured after the landlord failed to call the police.

In Bailey, a man was brandishing a firearm and threatening to shoot people. A witness informed two security guards working for a company hired by the landlord of the dangerous situation. The witness pointed in the direction of the trouble, which was visible to the guards. Instead of calling the police or attempting to defuse the situation, the security guards dropped off an intoxicated person at another apartment. While security guards took the intoxicated person to the apartment, shots were fired and Bailey struck by two bullets. As a result of his injuries, Bailey sued the apartment complex and the security company. Bailey argued that the landlord and security company had a duty to call the police once they were apprised of the dangerous situation.

Because of the novel issue presented, the court discussed the evolution of premises liability with respect to merchants. The court then concluded that the same rules that apply to merchants also apply in a landlord-tenant relationship. The specific duty at issue in Bailey was the duty owed to persons on the premises when a situation poses a risk of imminent and foreseeable harm to those present.  The court ruled that the landlords owe their tenants and any invitees to the property a duty “to respond reasonably to situations occurring on the premises.” This includes the duty to call “the police when the criminal acts of a third party endanger a readily identifiable invitee.”

Although landlords have a duty to contact the police, it should be remembered that there is no duty to take further action. The landlord is under no obligation to personally break up any altercation. In order for landlords to protect themselves, they should put policies in place and train employees on how to handle dangerous situations as they arise. When landlords contract with private security firms, landlords should be diligent in confirming that the security guards are aware and trained in these situations.