Michigan Supreme Court Ruling: What the End of the “Open & Obvious” Doctrine Means for Property Owners
The recent Michigan Supreme Court ruling on July 28, 2023, has turned the tide on how “Open & 
Obvious” cases are handled in the state. With a 5-2 decision, the court has declared that such cases can no longer be dismissed outright by judges. Instead, they must be brought before a jury. This landmark decision holds significant implications for consumers, property owners, and businesses. Here’s what you need to know.
A Shift Towards Increased Litigation
In the past, if an accident occurred due to a hazard that was “open and obvious,” a judge could dismiss the case before it went to trial. This judicial gatekeeping helped limit the number of cases that proceeded to lengthy and costly jury trials. With the new ruling, however, every case must now be considered by a jury, leading to a significant increase in litigation.
Financial Implications
For property owners, this change means that even if they are not found liable for an accident, they will still face the costs associated with going to trial. These costs include attorney fees, court fees, and the time and resources spent on legal proceedings. This financial strain can be substantial, especially for small business owners and individuals.
Who Can Be Sued?
The scope of this ruling is broad, impacting:
– Residential homeowners
– Business owners
– Landlords
– Property management companies
– Event organizers
– Snowplow drivers
Essentially, anyone responsible for maintaining a property or organizing an event can be sued if an accident occurs on their premises, regardless of the apparent obviousness of the hazard.
Steps to Protect Yourself
Given the increased risk of litigation, it’s essential for property owners and businesses to take proactive measures to protect themselves. Here are some steps to consider:
1. Insurance Coverage
– Ensure you have comprehensive liability insurance to cover potential legal fees and court costs. This insurance is a critical safety net that can protect against significant financial loss.
2. Documentation and Maintenance Logs
– Routine Maintenance Logs: Keep detailed records of all property maintenance activities. Document when sidewalks are shoveled and salted, when floors are mopped, and when safety signs are placed.
– Incident Reports: In the event of an accident, promptly complete an incident report. This report should include:
– Date and time of the incident
– A detailed description of what happened including property damage/injuries
– Information about the injured party and any witnesses (names and contact details)
– Photos of the accident scene including property damage/injuries
– Store all documentation digitally if possible with timestamps to provide verifiable evidence if needed. This information will be critical if you need to go to court or provide information to your insurance company.
Legal Considerations
When a case goes to trial, the key issues will revolve around:
– Duty of Care: Whether the defendant breached their duty of care to prevent accidents.
– Comparative Fault: The degree to which the plaintiff was at fault for the incident. In Michigan, the comparative fault system allows for the reduction of damages based on the plaintiff’s degree of fault.
Anticipated Outcomes
– Increased Court Caseload: The ruling is expected to lead to a higher number of cases going to trial, putting additional pressure on the court system.
– Higher Insurance Premiums: With the potential for more claims, insurance companies may increase premiums for liability coverage to offset their increased risk and costs.
Conclusion
The Michigan Supreme Court’s decision marks a significant shift in handling “Open & Obvious” cases, emphasizing jury trials over judicial dismissals. Property owners and businesses must now be more vigilant in documenting safety measures and securing comprehensive insurance coverage to navigate this new legal landscape effectively. By taking these precautions, they can better protect themselves against potential lawsuits and the associated financial burdens.
Stay informed, stay protected, and always be prepared. The legal landscape may have changed, but with the right measures in place, you can navigate these changes confidently.
