Recent Case Law Trends in New Jersey

Recent Case Law Trends in New York

RECENT CASE LAW TRENDS IN NEW JERSEY

Premise Liability – Exception to commercial landowner’s non-delegable duty to ensure its property is safe for invitees

A commercial landowner has a non-delegable duty to ensure that the property is safe for use by invitees of the landowner’s commercial tenant.

However, the New Jersey Superior Court, Appellate Division, published two cases indicating that there is an exception to a commercial landowner’s non-delegable duty in this regard if the landowner provides exclusive control of the property to its commercial tenant. See Milacci v. Mato Realty Co., Inc., 217 N.J. Super. 297, 301 (App. Div. 1987), and McBride v. Port Authority of New York & New Jersey, 295 N.J. Super. 521, 525-526 (App. Div. 1996).

In Milacci, the Appellate Division held that the owner of a building that was leased to the State was not liable for plaintiff’s personal injuries sustained at the building, because the owner’s lessee, the State, had exclusive control over the premises. 217 N.J. Super. at 301. Plaintiff Milacci alleged that she slipped and fell on an accumulation of sand and dirt on the floor of the State unemployment office located in the building. Id. at 299. To support the proposition that the State was in exclusive control of the premises, the Appellate Division considered the fact that the State had entered into its own contract with a third party, B. Anderson Custodial Services, to perform custodial services at the site. Id. at 302.

In the McBride case, the court held that a commercial landlord was not liable for injury to a commercial tenant’s employee that was allegedly injured on the leased premises since the commercial lease placed responsibility for maintenance and repair of the leased premises solely upon the tenant. 295 N.J. Super. at 522. Plaintiff McBride was injured when the vehicle he was operating on his employer’s loading dock struck a hole, causing him to fall to the ground and sustain injury. Id . at 524.

The Appellate Division in McBride set forth an analysis of the evolution of the case law regarding the duties of commercial landowners. The court specifically states that:

While some states have imposed a general tort duty of reasonable care upon landlords which may not be avoided by lease provisions, (citation omitted), our Supreme Court has not yet accepted that concept, and plaintiff has not contended in the court below or in this court that is should be incorporated into our common law. Furthermore, in Milacci v. Mato Realty Co., Inc., we expressly rejected the opportunity to so hold.” McBride, 295 N.J. Super. at 526.

The McBride court went on to hold that the terms of the lease between plaintiff’s employer and the Port Authority were unambiguous with regard to the responsibility for maintenance and repair of the loading dock, the site of the accident. Id. 523.

The New Jersey Supreme Court has not considered this issue. Consequently, the Appellate Division’s holding in Milacci is still good law, and sets forth an exception to the general principle that a commercial landowner has a non-delegable duty to protect invitees from danger. Faust, Goetz, Schenker & Blee currently represents commercial landowners throughout the State of New Jersey. Where appropriate the above argument is asserted by our office in the defense of cases where the tenant of the commercial landlord assumed all maintenance responsibilities for the property from our clients pursuant to a commercial lease. Most recently we have been successful in moving for summary judgment based on this argument.

Elevator Litigation – Need for an expert

It is well settled law in the State of New Jersey that it is recommended that plaintiffs obtain an expert in order to establish that a complex instrumentality was negligently maintained. See Jimenez v. GNOC Corp. 286 N.J. Super 533 (App. Div. 1996). The need for an expert in complex instrumentality cases stems from New Jersey law that res ipsa loquitur is inapplicable where the injured party fails to exclude other possible causes of injury. See Gore v. Otis Elevator Co., 335 N.J. Super. 296, 302 (App. Div. 2000).

Recently, in Huszar v. Greate Bay Hotel and Casino, 375 N.J. Super 463 (App. Div. 2005), an Appellate Division court held that an elevator is a complex instrumentality and a plaintiff needs to present expert testimony in order to support his claim. In Huszar, the plaintiff’s counsel failed to obtain an elevator expert during the discovery period and relied on the theory of res ipsa loquitur. The Appellate Division affirmed the trial court’s decision to dismiss this matter because plaintiff’s counsel failed to obtain an elevator expert and incorrectly relied on the doctrine of res ipsa loquitur.

The doctrine of res ipsa loquitur is a method of circumstantially proving the existence of negligence. It permits an inference of negligence without direct evidence where three elements are established: (1) the event does not normally happen in the absence of negligence, (2) the instrument of harm was exclusively within the defendant's control, and (3) there is no indication that the plaintiff caused her own injury. Where applicable, res ipsa loquitur allows a plaintiff to establish a prima facie case and to withstand a motion to dismiss for lack of direct proof of negligence. Res ipsa loquitur does not shift the burden of proof to the defendant, but only the burden of producing evidence. See Knight v. Essex Plaza, 377 N.J. Super. 562 (App. Div. 2005).

The significance of the Huszar case is that simply relying on the theory of res ipsa loquitur may not be enough to support a claim where a piece of machinery is involved. Our firm has successfully argued that in order for a plaintiff to support a claim that involves a piece of machinery, an expert must be retained. Alternatively, defendants should consider filing summary judgment motions in cases where a plaintiff fails to obtain an expert at the conclusion of the discovery period.

Recently, in an elevator negligent maintenance case, FGSB successfully moved for summary judgment where the plaintiff and the co-defendants failed to obtain an elevator expert report setting forth their theory of liability against our insured and simply relied on the doctrine of res ipsa loquitur. FGSB has taken the lead in aggressively defending all elevator cases and moving for summary judgment in cases in which plaintiffs fail to obtain an expert report setting forth their theory of liability and rely only on the doctrine of res ipsa loquitur.

Verbal Threshold Defense

This past Spring, Faust, Goetz, Schenker & Blee was anxiously awaiting the New Jersey Supreme Court’s decisions on the future use of the verbal threshold defense in New Jersey motor vehicle accident litigation. On June 14, 2005, the New Jersey Supreme Court issued two published opinions that definitively eliminated the need of an injured party to show that his or her alleged injuries from a motor vehicle accident caused plaintiff a serious life impact. See DiProspero v. Penn, 183 N.J. 477 (N.J. 2005), and Serrano v. Serrano, 183 N.J. 508 (N.J. 2005).

Consequently, under The Automobile Insurance Cost Reduction Act (AICRA), N.J.S.A 39:6A-1.1, et seq., an injured party selecting the limitation on lawsuit option in his or her personal automobile policy, or the “verbal threshold”, need only prove by credible, objective evidence that the injury sustained falls with one of six statutorily created categories to recover for non-economic, or “pain and suffering”, damages.

In DiProspero, the Supreme Court held that the plain language of the AICRA does not contain a serious life impact standard. Id. An extensive evaluation of the legislative history of the AICRA was performed, revealing no evidence that the legislature intended to add a second test for serious life impact. Previously, under the Oswin standard, the court needed to analyze plaintiff’s claims under two prongs: (1) serious and permanent injury, and (2) serious life impact. In DiProspero, the court concluded that plaintiff must only establish a serious and permanent injury as set forth in the six statutorily created categories.

The Serrano case was decided on the same day as the DiProspero case. Plaintiff’s case was remanded for consideration under the new standard. Plaintiff Serrano was twenty-one years old, unemployed, and a passenger injured in a motor vehicle accident that occurred while his wife was driving. He alleged acute neck and back strain, TMJ, and carpal tunnel syndrome.

A July 21, 2005, published decision from the New Jersey Superior Court, Appellate Division, evaluated plaintiff Juarez’ injuries under the DiProspero and Serrano standard. In Juarez v. Salerno, the court found plaintiff Juarez did not provide objective evidence that the injuries sustained met the statutory standard set forth in the AICRA. Plaintiff Juarez alleged back sprain/strain, left sided L5 radiculopathy, post-traumatic stress syndrome with associated nervousness, fatigue, depression and anxiety, and a right shoulder contusion.

We expect that the Appellate Division will issue several published cases in the upcoming months evaluating the limits of the types of injuries that qualify under the newly created standard set forth in DiProspero and Serrano. Currently, Faust, Goetz, Schenker & Blee continues to argue the verbal threshold defense on behalf of our clients in all appropriate cases. We anticipate testing the limits of the types of injuries that will now qualify under this new standard throughout all counties of New Jersey.

RECENT CASE LAW TRENDS IN NEW YORK

Labor Law §240 – Narrowing of claims of appellate courts

Though originally intended as a “scaffolding” statute, over the years the New York courts expanded the types of actions that could be brought within Labor Law §240. It devolved to a point when almost any injury to an employee on a construction site was subject to “strict liability” under Labor Law §240.

Most recently, however, the New York Court of Appeals appears to be significantly narrowing down the types of claims that may be brought under Labor Law §240. In a recent case in which Faust, Goetz, Schenker & Blee was instrumental, the Court of Appeals found that a fall off of a flatbed truck was not an “elevation-related risk” sufficient to necessitate the extraordinary protections of Labor Law §240.

The Court of Appeals is also moving towards making employees responsible for their own negligence. In Montgomery, the Court of Appeals found for the employer when the employee used a bucket to climb up and down from the elevator housing. The court found that the plaintiff “should have known” that he needed a ladder. This is a significant departure from the prior “strict liability” that found an employer liable for the lack of safety devices.

Furthermore, prior to the recent decision in Cahill, the only defense an employer had against an employee who refused or negligently failed to use available safety devices was the “recalcitrant worker” defense. Historically, this was a very difficult defense for the employer as the employer had the burden of proving that the employee refused to obey an immediate, direct order. In Cahill, the employee was instructed to use safety lines six weeks prior to the accident. This was sufficient to find the employee was recalcitrant and dismissed the Labor Law §240 action.

With the movement away from the heavy liability burdens for employers, it is FGSB's position to vigorously use the complex litigation and appellate departments to seek dismissal of Labor Law §240 causes of action prior to settlement negotiations or jury trials.