ALLISON v AEW CAPITAL MANAGEMENT, LLP
Docket No. 133771
Supreme Court of Michigan
Argued January 9, 2008. Decided June 25, 2008.
481 Mich 419
In an opinion by Justice MARKMAN, joined by Chief Justice TAYLOR and Justices WEAVER, CORRIGAN, and YOUNG, the Supreme Court held:
Parking lots in leased residential properties are common areas under
- The protection under
MCL 554.139(1) arises from the existence of a residential lease and consequently becomes a statutorily mandated term of such lease. Therefore, a breach of the duty to maintain the premises underMCL 554.139(1)(a) or(b) would be construed as a breach of the terms of the lease between the parties, and any remedy under the statute would consist exclusively of a contract remedy. - In the context of leased residential property, “common areas” describes those areas of the property over which the lessor retains control that two or more, or all, of the tenants share. Parking lots in leased residential property are common areas for purposes of
MCL 554.139(1)(a) . - Because a parking lot in a leased residential property is a common area, the lessor has a duty under
MCL 554.139(1)(a) to keep the lot fit for the use intended by the parties. A lessor‘s obligation under this provision with regard to the accumulation of snow and ice is to ensure that the entrance to and exit from the lot is clear, that vehicles can access parking spaces, and that the tenants have reasonable access to their parked vehicles. - The one to two inches of snow on the ground in this case did not render the parking lot unfit.
- The Legislature specifically established a duty for lessors under
MCL 554.139(1)(a) with regard to the premises and all common areas, but established a duty underMCL 554.139(1)(b) only with regard to the premises. Accordingly, the duty requiring reasonable repair does not apply to common areas such as a parking lot.
Justice CORRIGAN, concurring, would hold that the statutory duty of a lessor to keep the premises and common areas fit for their intended use extends only to significant, structural defects that render a parking lot itself unfit for its intended use and not to
Reversed; trial court order granting summary disposition for the defendants reinstated.
Justice CAVANAGH, joined by Justice KELLY, dissenting, would hold that the plaintiff made a sufficient showing to survive summary disposition under the statutory provision that requires a landlord to ensure that the premises and common areas are fit for use by establishing that the plaintiff was unable to access his vehicle without injury; would not categorically conclude that an accumulation of one or two inches of snow or ice can never make a parking lot unfit for its intended uses; would hold that a landlord has a duty to take reasonable measures within a reasonable time after an accumulation of ice and snow to diminish the hazard of injury to a tenant; and would not have reached several issues that were not properly before the Court.
1. LANDLORD AND TENANT — STATUTORY DUTIES — CONTRACTS — REMEDIES.
The statutory protection to tenants of residential property arises from the existence of a residential lease and consequently becomes a statutorily mandated term of such lease; therefore, a breach of the statutory duty to maintain the premises would be construed as a breach of the terms of the lease between the parties, and any remedy under the statute would consist exclusively of a contract remedy (
2. LANDLORD AND TENANT — COMMON AREAS — PARKING LOTS.
In the context of leased residential property, “common areas” describes those areas of the property over which the lessor retains control that two or more, or all, of the tenants share; parking lots in leased residential properties are common areas for purposes of the statute that imposes a duty on a lessor to keep the premises and all common areas fit for the uses intended by the parties to the lease (
3. LANDLORD AND TENANT — STATUTORY DUTIES — NATURAL ACCUMULATIONS OF SNOW AND ICE.
Because a parking lot in a leased residential property is a common area, the lessor has a statutory duty to keep the lot fit for the use intended by the parties; a lessor‘s obligation with regard to the accumulation of snow and ice is to ensure that the entrance to and
4. LANDLORD AND TENANT — STATUTORY DUTIES.
The statutory duty requiring reasonable repair applies only to premises and does not apply to common areas such as a parking lot (
Barbara H. Goldman, PLLC (by Barbara H. Goldman), and Mindell, Malin & Kutinsky (by Brian A. Kutinsky) for Irving Allison.
Plunkett Cooney (by Christine D. Oldani and Edward M. Turfe) for Village Green Management Company and BFMSIT, II.
Amici Curiae:
Swistak & Levine, P.C. (by I. Matthew Miller), for the Property Management Association of Michigan, the Detroit Metropolitan Apartment Association, the Property Management Association of West Michigan, the Property Management Association of Mid-Michigan, the Washtenaw Area Apartment Association, the Apartment Association of Michigan, the Institute of Real Estate Management Michigan Chapter 5, the Michigan Housing Council, the Property Owners Association of Kent County, and the Real Estate Investors Association of Wayne County.
Janet M. Brandon for the Michigan Association for Justice. Farmington Hills
MARKMAN, J. We granted leave to appeal to address the following questions: (1) whether parking lots in leased residential areas constitute “common areas” under
I. FACTS AND PROCEDURAL HISTORY
Plaintiff fractured his ankle during a fall when he was walking on one to two inches of accumulated snow in the parking lot of his apartment complex. He then noticed ice on the ground where the snow had been displaced. Plaintiff filed suit against defendant AEW Capital Management, doing business as Sutton Place Apartments, alleging negligence and breach of the covenant to maintain and repair the premises,
The Court of Appeals affirmed the trial court‘s ruling on the basis of Teufel v Watkins, 267 Mich App 425, 429 n 1; 705 NW2d 164 (2005), which held that
II. STANDARD OF REVIEW
This Court reviews de novo the grant or denial of a summary disposition motion. Saffian v Simmons, 477 Mich 8, 12; 727 NW2d 132 (2007). Matters of statutory interpretation are also reviewed de novo. Id. Defendants moved for summary disposition under
III. ANALYSIS
Plaintiff asserted two different causes of action in this case: (1) negligence and (2) breach of the covenants to keep the premises and common areas fit for their intended use and to keep the premises in reasonable repair,
A. “COMMON AREAS”
(1) In every lease or license of residential premises, the lessor or licensor covenants:
(a) That the premises and all common areas are fit for the use intended by the parties.
(b) To keep the premises in reasonable repair during the term of the lease or license, and to comply with the applicable health and safety laws of the state and of the local unit of government where the premises are located, except when the disrepair or violation of the applicable health or safety laws has been caused by the tenant‘s wilful or irresponsible conduct or lack of conduct.
We agree that a parking lot within a leased residential property fits within the meaning of “common area” because it is accessed by two or more, or all, of the tenants and the lessor retains general control. Among other things, the lessor controls whether a parking lot is used by members of the public as well as by tenants, the circumstances under which non-tenants can access the lot, the number and size of vehicles that a tenant can park in the lot, the lot‘s hours of operation, the means of identification of those entitled to park in the lot, and whether and how particular parking spaces will be allocated. Further, the lessor is responsible for the maintenance and security of the lot. Thus, we believe that parking lots within a leased residential property that are shared by two or more, or all, of the tenants constitute “common areas” under
B. LESSOR‘S DUTY UNDER MCL 554.139(1)(a)
Because a parking lot within a leased residential property is a common area under
The intended use of a parking lot is to park cars and other motor vehicles; however, in order to access their vehicles and apartments, tenants must also necessarily walk on the parking lot. A second intended use of a parking lot, therefore, is walking on it. A parking lot covered with ice is not fit for this purpose. [Allison, supra at 670-671.]
We agree that the intended use of a parking lot includes the parking of vehicles. A parking lot is constructed for the primary purpose of storing vehicles on the lot. “Fit” is defined as “adapted or suited; appropriate[.]” Random House Webster‘s College Dictionary (1997). Therefore, a lessor has a duty to keep a parking lot adapted or suited for the parking of vehicles. A parking lot is generally considered suitable for the parking of vehicles as long as the tenants are able to park their vehicles in the lot and have reasonable access to their vehicles. A lessor‘s obligation under
In this case, in construing the meaning of these terms in the contract, neither of the parties has indi-
While a lessor may have some duty under
We recognize that tenants must walk across a parking lot in order to access their vehicles. However, plaintiff did not show that the condition of the parking lot in this case precluded access to his vehicle. The Court of Appeals erred in concluding that, under the facts presented, the parking lot in this case was unfit simply because it was covered in snow and ice.4 Allison,
supra at 670-671. Further, we take issue with the suggestion of the Court of Appeals that a tenant traversing a parking lot, for any reason, might be able to take advantage of the covenant for fitness for the uses intended. A tenant using a common area for a purpose other than that for which the area is intended is not protected by the covenant for fitness, but would be afforded any protections provided by the common law. The statute does not require any level of fitness beyond what is necessary to allow tenants to use the parking lot as the parties intended. In addition, should this point need clarification, a non-tenant could never recover under the covenant for fitness because a lessor has no contractual relationship with — and, therefore, no duty under the statute to — a non-tenant.5 Plaintiff has not shown that the lot in this case was unfit for its intended use, and the Court of Appeals erred in concluding otherwise.
C. LESSOR‘S DUTY UNDER MCL 554.139(1)(b)
The final question concerns whether a lessor‘s duty to repair under
“Premises” is defined as “a tract of land including its buildings” or “a building or part of a building together with its grounds or other appurtenances[.]” Random House Webster‘s College Dictionary (1997). Such a definition would seem to include everything within the boundaries of the apartment complex, including the common areas. However, a statute can give special meaning to a word apart from its everyday use. Under the doctrine of noscitur a sociis, a word is also given meaning in the context of the words around it. Koontz, supra at 318.
In this statute, the Legislature specifically set the term “common areas” apart from the term “premises” by applying the first covenant to both terms and the second covenant only to “premises.” If we conclude that “premises” includes “common areas,” then the phrase “and all common areas” would be entirely superfluous. The only way to give meaning to the phrase “and all common areas” in this context is to conclude that “premises” does not encompass “common areas” and that the covenant to repair under
In Teufel, supra at 429 n 1, the Court of Appeals held:
Plaintiff also argues that the trial court erred when it failed to address his argument that [the lessor] had a
Therefore,
statutory duty under
MCL 554.139 to keep its premises and common areas in reasonable repair and fit for their intended uses, which negates the defense of open and obvious danger. Any error in the trial court‘s failure to address this argument is harmless. The plain meaning of “reasonable repair” as used inMCL 554.139(1)(b) requires repair of a defect in the premises. Accumulation of snow and ice is not a defect in the premises. Thus, a lessor‘s duty underMCL 554.139(1)(a) and(b) to keep its premises in reasonable repair and fit for its intended use does not extend to snow and ice removal.
This is an accurate assessment of the requirement of “reasonable repair” in
This conclusion can be analogized to the government‘s duty to maintain highways in reasonable repair under
We hold that the lessor‘s duty to repair under
D. TEUFEL AS PRECEDENT
The Court of Appeals on reconsideration stated that the holding in Teufel, supra at 429 n 1, was legally flawed for failing to distinguish, or even mention, O‘Donnell v Garasic, 259 Mich App 569; 676 NW2d 213 (2003), and for failing to conduct a separate analysis of
The essential question is not whether the language in Teufel was contained within a footnote, but whether it created a “rule of law” for the purposes of
In Teufel, the plaintiff slipped and fell on ice in the parking lot of his apartment complex. Teufel, supra at 426. The Court of Appeals held that the trial court properly granted summary disposition to the defendant apartment complex on the basis of the “open and obvious” danger doctrine. Id. at 428-429. The language in the Teufel footnote was not dictum; rather, the footnote addressed an alternative argument raised by the plaintiff regarding the applicability of
The Court of Appeals’ concern that Teufel itself did not follow the precedent of O‘Donnell was without merit. In O‘Donnell, supra at 581, the Court of Appeals held that a defendant cannot use the “open and obvious” danger doctrine to avoid liability when the defendant has a statutory duty to maintain the premises in accordance with
Appeals issued on or after November 1, 1990, that has not been reversed or modified by the Supreme Court, or by a special panel of the Court of Appeals as provided in this rule.
IV. CONCLUSION
We hold that: (1) parking lots in leased residential areas constitute “common areas” under
TAYLOR, C.J., and WEAVER, CORRIGAN, and YOUNG, JJ., concurred with MARKMAN, J.
CORRIGAN, J. (concurring). I concur in the result and virtually all of the reasoning of the majority opinion. In particular, I agree that (1) sidewalks and parking lots in leased residential areas are “common areas” under
My sole area of disagreement with the majority concerns its analysis of whether a lessor‘s duty to keep the premises and common areas “fit for the use intended by the parties,”
In every lease or license of residential premises, the lessor or licensor covenants:
(a) That the premises and all common areas are fit for the use intended by the parties.
The majority resorts to a lay dictionary to define “fit” as ” ‘adapted or suited; appropriate[.]’ ” Ante at 429, quoting Random House Webster‘s College Dictionary (1997). The majority then concludes that in some unspecified “exigent circumstances,” ante at 430, a natural accumulation of ice or snow could render the parking lot unfit for its intended use.
The majority‘s analysis hinges on its implicit view that the duty to keep the parking lot itself fit extends to transient conditions such as natural accumulations of snow or ice. This assumption overlooks a fair reading of the statutory text limiting the duty of fitness to the physical structure of the premises and common areas.1 My analysis of the statutory covenant and its legal background suggests that it is limited to structural defects.
While a court may use a lay dictionary to define common words or phrases that lack a unique legal meaning,
The duties set forth in
“At common law, a landlord generally had no duty to provide a habitable rental property.” 49 Am Jur 2d, Landlord and Tenant, § 447, p 455. See also Fisher v Thirkell, 21 Mich 1, 6-7 (1870). That traditional rule was abrogated as a majority of jurisdictions adopted, either by common law or by express statutory provision, an implied warranty of habitability. 49 Am Jur 2d, Landlord and Tenant, § 447, p 455.2
“An implied warranty of habitability requires that a dwelling be fit for its intended use; that is, it should be habitable and fit for living.” 52 CJS, Landlord & Tenant, § 687, p 607 (emphasis added). The warranty is breached where a “defect” exists that is “of a nature and kind which will prevent the use of the dwelling for its intended purpose to provide premises fit for habitation by its dwellers.” 49 Am Jur 2d, Landlord and Tenant, § 450, p 459 (emphasis added). This implied warranty extends to common areas. See id., § 447, p 455. A reasonable inference arises from the language of
Therefore, in light of the legal background of the implied warranty of habitability and the codification of that warranty in
In any event, the majority‘s analysis of this issue is unnecessary to the disposition of this case. As the majority correctly concludes, the one to two inches of accumulated precipitation in this case did not render
For these reasons, I cannot join the majority‘s analysis in full. In all other respects, I concur in the reasoning and conclusions set forth in the majority opinion.
CAVANAGH, J. (dissenting). I agree with the majority‘s conclusions under
I believe that plaintiff has made a sufficient showing to survive summary disposition under
In this case, plaintiff was defendant‘s tenant and suffered injury in defendant‘s apartment complex parking lot. The parking lot was a common area. Its intended use included parking vehicles, which includes walking to and from the vehicle. Plaintiff was walking to his vehicle when he slipped and fell; therefore, he was using the parking lot as the parties intended when he was injured.2 So the next question is whether the parking lot was fit for its intended use when plaintiff fell.
The concept of fitness for use includes safety. The Second Restatement of Torts states:
[A]n invitee enters upon an implied representation or assurance that the land has been prepared and made ready and safe for his reception. He is therefore entitled to expect that the possessor will exercise reasonable care to make the land safe for his entry, or for his use for the purposes of the invitation. [2 Restatement Torts, 2d, § 343, comment b, p 216.]
Specifically in landlord and tenant law, this Court has stated that “a landlord may be held liable for an unreasonable risk of harm caused by a dangerous condition in the areas of common use retained in his control....” Williams v Cunningham Drug Stores, Inc, 429 Mich 495, 499; 418 NW2d 381 (1988). The Williams Court reasoned:
The rationale behind imposing a duty to protect in these special relationships is based on control. In each situation one person entrusts himself to the control and protection of another, with a consequent loss of control to protect himself. The duty to protect is imposed upon the person in control because he is best able to provide a place of safety.” [Id. (emphasis added).]
So
There appears to be some confusion about the condition of defendant‘s parking lot at the time of plaintiff‘s injury. The Court of Appeals described the condition as “[a] parking lot covered with ice,”4 while the majority describes the condition as a lot with “one to two inches of accumulated snow....” Ante at 423. A two-inch sheet of ice ordinarily presents a very different degree of danger from that ordinarily presented by two inches of snow. Typically, the danger associated with snow becomes greater as the snow becomes deeper. But ice may be dangerous at almost any thickness.
Plaintiff testified that when he left his apartment for work on the morning of March 13, 2003, the entire area
The majority states that “[m]ere inconvenience” does not make a common area unfit for its intended use. Ante at 430. But the ice-covered surface of defendant‘s parking lot presented a much greater danger to plaintiff than mere inconvenience. Plaintiff‘s fall on ice in defendant‘s parking lot caused severe injury. Plaintiff‘s fractured ankle required extensive surgery. Plaintiff was not able to return to work for three months following surgery. In deposition testimony two years after the injury, plaintiff stated, “I always have pain and restrictions... I have pain in my ankle every day.” Further, plaintiff is subject to ankle “re-sprains” three or four times a week. I would not call the condition plaintiff faced a mere inconvenience. And I would not call a common area that presented such a danger fit for its intended use.
A landlord‘s duty to provide safe common areas does not preclude a tenant‘s duty to take steps within his control to keep himself safe. The trial court intimated as much when it opined on the proper method of walking on ice: “I suggest that - I call it the Michigan shuffle, but you don‘t necessarily walk; you do the skating.” Contrary to the apparent perception of the trial court, plaintiff testified in deposition that he took every reasonable precaution: he was wearing boots specifically made for walking on snow, he watched where he was going, and he proceeded with great care when crossing the parking lot. Despite his best efforts to attend to his safety by means within his control, he was injured. At this pretrial stage, I believe that plaintiff has raised a genuine issue of fact concerning whether the parking lot was unfit. Thus, summary disposition is inappropriate.
If a plaintiff is able to show that a common area is not fit for its intended use, the reasonableness of the landlord‘s actions to remedy the unfit condition should also be assessed. “[A] contract to keep the premises in
I would also state a clearer standard for a landlord‘s liability regarding ice and snow than the majority provides to guide courts facing similar claims in the future. Because fitness for use requires a landlord to take measures to provide safe common areas, and because a landlord‘s duty requires exercise of reasonable care, I would apply the standard of Quinlivan v Great Atlantic & Pacific Tea Co, Inc, 395 Mich 244, 261; 235 NW2d 732 (1975): the duty owed by a landlord to a tenant regarding ice and snow requires that “reasonable measures be taken within a reasonable time after an accumulation of ice and snow to diminish the hazard of injury to the [tenant].” This standard arose in tort law, but it applies to fitness for use as well. It is faithful to the statute and readily applicable for courts in the future.
I generally agree with the majority‘s analysis (if not its application) of
A lessor of land is subject to liability for physical harm caused to his lessee and others upon the land with the consent of the lessee or his sublessee by a condition of disrepair existing before or arising after the lessee has taken possession if
(a) the lessor, as such, has contracted by a covenant in the lease or otherwise to keep the land in repair, and
(b) the disrepair creates an unreasonable risk to persons upon the land which the performance of the lessor‘s agreement would have prevented, and
(c) the lessor fails to exercise reasonable care to perform his contract. [Id. at 241.]
The comments to that section state that “the duty arises out of the existence of the contract to repair.” Id., comment d, p 242. The comments further state that “[t]he lessor‘s duty under the rule stated in this Section is not merely contractual, although it is founded upon a contract. It is a tort duty.” Id., § 357, comment c, p 242. There is no reason this liability should not apply under
Also, because this case involves a tenant only, there is no reason to address a landlord‘s liability to nontenants under
Finally, I believe that
The trial court in this case found that
KELLY, J., concurred with CAVANAGH, J.
Notes
The dissent “would hold that a plaintiff who proves a claim under
(J) Resolution of Conflicts in Court of Appeals Decisions.
(1) Precedential Effect of Published Decisions. A panel of the Court of Appeals must follow the rule of law established by a prior published decision of the Court of
