Lead Opinion
While walking in the rain to another apartment in her complex, Yvonne Jesse decided to walk in the planting area in order to avoid a considerable amount of water covering the driveway. As she was walking, Jesse stepped in a sinkhole and fell, sustaining multiple injuries. Jesse sued her landlord, Ted Lindsley, for failing to maintain the premises in a safe condition. Lindsley moved for summary judgment, alleging that an exculpatory clause in the lease absolved him from liability for Jesse’s injuries. The district court agreed and granted summary judgment in favor of Lindsley. Jesse appealed to this Court. We vacate the summary judgment and remand for further proceedings.
I.
The facts of this case are largely undisputed. Ted Lindsley owns Vista Valley Apartments in Grangeville, Idaho. Yvonne Jesse rented an apartment from Lindsley in 2000. The apartment lease contains an exculpatory clause, which provides:
That the owner shall not be liable for damages due to either injuries or accidents caused by slipping, falling or from any other sources that occur either in the apartment building, the outside area of the apartment building, or on the outside premises of the lot or land, paving or sidewalks where the apartment building is located or from any act of God that either directly or indirectly may cause bodily harm of any nature.
On May 8, 2005, Jesse injured herself when she fell in a sinkhole while walking in the planting area adjacent to her mother’s apartment, which was in the same complex. It was raining heavily, and Jesse walked in the planting area beside the driveway in order to avoid a “considerable amount” of water which ran down the driveway.
Jesse sued Lindsley on a negligence theory, alleging he should have known the sinkhole was a dangerous condition that presented an unreasonable risk to tenants and that he should have remedied this prior to her fall. Lindsley moved for summary judgment on the grounds that the exculpatory clause relieved him from all liability. The district court granted summary judgment for Lindsley on that basis, stating:
Today in Idaho a landlord is strictly liable for breaches of the statutory warranty of habitability [under I.C. § 6-320] and he must exercise due care regarding all other aspects of the rented or leased premises. Competing with those fairly straight-forward notions is the right of Idahoans to contract away their duties and liability for their own negligence.
Jesse appealed to this Court, contending she was entitled to pursue a claim under I.C. § 6-320 and that, in any event, the exculpatory clause was against public policy and unenforceable.
II.
In this case, we address (1) whether Jesse can bring a claim under I.C. § 6-320 and (2) whether an exculpatory clause purporting to absolve a landlord from liability for accidental injuries sustained by the tenant is in contravention of public policy and unenforceable.
A.
Standard of Review
On appeal from the grant of a motion for summary judgment, this Court applies the same standard used by the district court originally ruling on the motion. Carnell v. Barker Mgmt., Inc.,
B.
Jesse May Not Invoke I.C. § 6-320
Jesse contends Lindsley violated I.C. § 6-320, Idaho’s statutory version of the implied warranty of habitability.
I.C. § 6-320 is a strict liability statute. Silver Creek Computers,
C.
The Exculpatory Clause Is Overly Broad and Unenforceable
The district court found the planting area was not within the scope of the statutory warranty of habitability because the landlord did not intend that area to be a means of access to the apartment. In addition, the lease provision specifically negated liability for any personal injury that occurred on the premises. Given the expanse of the exculpatory language and the finding that the planting area was beyond the ambit of the habitability covenant, the district court concluded Lindsley successfully immunized himself from liability.
Jesse contends the district court erred when it held the exculpatory clause was enforceable because the clause violates public policy. To support this contention, Jesse relies on a landlord’s common law duty to exercise reasonable care in light of all the circumstances and I.C. § 6-320. Jesse claims the clause in the rental agreement violates Idaho’s public policy by eliminating the landlord’s duty to exercise reasonable care. As such, the clause should not be enforced. Lindsley contends that the clause is enforceable because parties are free to contract with one another, as they did here in agreeing to the clause. Further, he contends the accident at issue here would not fall within I.C. § 6-320, and that there is no legitimate argument that public policy gives tenants greater protection than the Legislature codified.
Before considering these arguments, it would be well to consider the duty a landlord owes to a residential tenant, including the role of Section 6-320. This Court initially discussed that section in Worden v. Ordway,
The Idaho legislature has already acted in this area and enacted a statutory version of the implied warranty of habitability theory. I.C. § 6-320. This Court should refrain from changing or expanding a common law rule, where the legislature has already acted in the same area.
Id. The Court reiterated that Section 6-320 constituted a statutory version of the implied warranty of habitability in Stephens v. Stearns,
The Court again visited the issue in Stevens v. Fleming,
A landlord is required to exercise reasonable care to his tenants in light of all the circumstances. Stephens v. Stearns ... In adopting the reasonable care standard for landlords in Steams ... the Idaho Supreme Court noted by way of footnote that its holding was supported by a statutory version of the implied warranty of habitability, I.C. § 6-320. When applicable, specific statutory provisions such as the Uniform Fire Code may prove useful in delineating minimum standards which are binding upon every owner of a rented premises. Such on point code provisions provide a ready measure of the base standard of care and failure to meet such standards may be negligence per se if the statutes or ordinances were designed to prevent the type of harm which occurred.
Id. at 525-26,
Thus, the rule is that a landlord must exercise reasonable care under the circumstances for the protection of his residential tenant. This includes the duty under I.C. § 6-320 to maintain the premises in a manner that is not hazardous to the health or safety of the tenant. We now turn to the application of the exculpatory clause.
Freedom of contract is a fundamental concept underlying the law of contracts. Rawlings v. Layne & Bowler Pump Co.,
The general rule sustaining agreements exempting a party from liability for negligence is subject to two exceptions: “(1) one party is at an obvious disadvantage in bargaining power; or (2) a public duty is involved (public utility companies, common carriers).”
The next question is the extent of the public policy coverage. Bakker tells us that a declaration of public policy in a statute is to be targeted to the specific problem addressed by the Legislature and an expression of public policy in a statutory provision does not necessarily extend to the entire code chapter in which the expression is contained. Bakker,
The remaining question is whether the exculpatory clause is enforceable as written. The clause reads:
That the owner shall not be liable for damages due to either injuries or accidents caused by slipping, falling or from any other sources that occur either in the apartment building, the outside area of the apartment building, or on the outside premises of the lot or land, paving or sidewalks where the apartment building is located or from any act of God that either directly or indirectly may cause bodily harm of any nature.
The clause purports to relieve Lindsley from liability for injuries or accidents caused by slipping and falling, as occurred here, or “from any other sources.” Further, it purports to absolve him from liability for such injuries that might occur either in the apartment building or outside the building, but still on the premises. In short, the clause attempts to relieve the landlord of liability for any type of injury, wherever it may occur. The clause is too broad and does not speak clearly and directly to the particular conduct of the defendant intended to be immunized. See Anderson & Nafziger,
While we have not considered the question of the enforceability of an overbroad exculpatory clause, we have considered the issue of
D.
The Jury Must Decide Whether Lindsley Exercised Reasonable Care
Jesse sued Lindsley on a negligence theory, alleging he should have known the sinkhole was a dangerous condition that presented an unreasonable risk to tenants, which he should have remedied prior to Jesse’s fall.
III.
We vacate the district court’s summary judgment and remand the case for further proceedings consistent with this opinion.
Notes
. According to her deposition, the water in the driveway would have been over her shoes. In addition, Jesse testified in her deposition that she fell in the hole on the way to her mother’s apartment, which was downstairs. The Complaint alleges she was on her way to her car.
. On appeal, Lindsley ¿irgues I.C. § 6-320 has no application because Plaintiff based her complaint solely on a theory of common law negligence. In response, Jesse contends the parties and the court have treated her claim as a violation of I.C. § 6-320 and/or a negligence claim throughout the proceedings. The district court did address the statutory claim in its decision and we, thus, do likewise.
. Jesse does not claim she had any disadvantage in bargaining power, but argues that the second exception applies on the theory that the statutory warranty of habitability creates a duty for Lindsley to maintain the premises in a safe condition.
. Lindsley argues this clause should not be invalidated because the accident at issue here occurred on a portion of the premises where the landlord would not anticipate a tenant walking. Therefore, it is outside the scope of the duty to exercise reasonable care. This argument is unavailing for two reasons. First, we must look at this clause as a whole to determine its validity. We do not possess the power to rewrite the clause to avoid voidability. See, e.g., Shawver v. Huckleberry Estates, LLC,
Dissenting Opinion
dissenting.
Because the majority has violated the Idaho Constitution by usurping the power of the legislature, I respectfully dissent.
The issue in this case is simply whether an exculpatory clause in a lease is valid. In Rawlings v. Layne & Bowler Pump Co.,
In Lee v. Sun Valley Co.,
where the legislature has addressed the rights and duties pertaining to personal injuries arising out of the relationship between two groups, i.e., employers/employees, outfitters and guides/participants, and has granted limited liability to one group in exchange for adherence to specific duties, then such duties become a “public duty” within the exception to the general rule validating exculpatory contracts. Therefore, while the agreement between Sun Valley and plaintiff does absolve Sun Valley from common law liabilities, it does not absolve Sun Valley from liability for possible violation of the public duty imposed by I.C. § 6-1204.
Under Lee, the existence of a public duty was based upon the fact that “the legislature has addressed the rights and duties pertaining to personal injuries arising out of the relationship between two groups.” Id. In that circumstance, the exculpatory clause absolved the party from “common law liabilities,” but it did not absolve the party from “the public duty imposed by [statute].”
In this case, the legislature has not addressed the rights and duties pertaining to personal injuries arising out of the relationship between landlord and tenant. The legislature has enacted Idaho Code § 6-320, which is “a statutory version of the implied warranty of habitability theory,” Worden v. Ordway,
For example, the statutes in Lee included a statement that it was the legislative purpose to “define those areas of responsibility and affirmative acts for which outfitters and guides shall be liable for loss, damage, or injury, and to define those risks which the participant expressly assumes and for which there can be no recovery.”
Even if Idaho Code § 6-320 did constitute “a public duty imposed by statute” under our decision in Lee, then Jesse’s remedy is the remedy provided by that statute. That was our holding in Lee. As we stated, “Therefore, while the agreement between Sun Valley and plaintiff does absolve Sun Valley from common law liabilities, it does not absolve Sun Valley from liability for possible violation of the public duty imposed by I.C. § 6-1204.”
Before a tenant shall have standing to file an action under this section, he must give his landlord three (3) days written notice, listing each failure or breach upon which his action will be premised and written demand requiring performance or cure. If, within three (3) days after service of the notice, any listed failure or breach has not been performed or cured by the landlord, the tenant may proceed to commence an action for damages and specific performance.
A tenant who believes there is an unsafe condition on the leased premises must give the landlord three days written notice to cure. If the landlord does not do so, the tenant has two options: (a) the tenant can bring an action for specific performance to obtain a court order requiring the landlord to cure the problem, or (b) the tenant can cure the problem and bring an action seeking to recover damages for the cost of doing so. Jesse did not seek either of those remedies in this case.
In Worden v. Ordway,
“The Idaho Constitution vests the power to enact substantive laws in the Legislature____ Just as Article II of the Idaho Constitution prohibits the Legislature from usurping powers properly belonging to the judicial department, so does that provision prohibit the judiciary from improperly invading the province of the Legislature.” In re SRBA Case No. 39576,
. Idaho Code § 6-1201 provides:
6-1201. LEGISLATIVE PURPOSE. Every year, in rapidly increasing numbers, the inhabitants of the state of Idaho and nonresidents are enjoying the recreational value of Idaho's mountains, rivers, and streams, many of which are remote and far removed for ordinary auto travel. The tourist trade is of vital importance to the state of Idaho, and the services offered by licensed outfitters and guides significantly contribute to the economy of the state of Idaho. The legislature recognizes that there are inherent risks in the recreational activities provided by outfitters which should be understood by each participant. These risks are essentially impossible to eliminate by outfitters and guides. It is the purpose of this chapter to define those areas of responsibility and affirmative acts for which outfitters and guides shall be liable for loss, damage, or injury, and to define those risks which the participant expressly assumes and for which there can be no recovery.
. Idaho Code § 6-1203 provides:
6-1203. DUTIES OF AN OUTFITTER. All outfitters offering professional services in this state shall provide facilities, equipment, and services as advertised or as agreed upon between the outfitter and the participant. All services, facilities, and equipment provided by outfitters in this state shall conform to safety and other requirements set forth in chapter 21, title 36, Idaho Code, and by the rules promulgated by the Idaho outfitters and guides board created by chapter 21, title 36, Idaho Code.
. Idaho Code § 6-1204 provides:
6-1204. DUTIES OF A GUIDE. Any guide providing personal services for an outfitter in this state shall conform to the standard of care expected of members of his profession and he shall comply with all duties and requirements placed on him by chapter 21, title 36, Idaho Code, and by the rules promulgated by the Idaho outfitters and guides board created by chapter 21, title 36, Idaho Code.
. Idaho Code § 6-1205 provides:
6-1205. DUTIES OF PARTICIPANTS. It is recognized that some recreational activities conducted by outfitters and guides are hazardous to participants regardless of all feasible safety measures which can be taken. Participants shall have a duty to act as would a reasonably prudent man when engaging in recreational activities offered by licensed outfitters and guides in this state. Participants shall have a duty not to:
(a) Do any act which shall interfere with the running or operation of an outfitter's or guide's activities, when such activities conform to the rules of the Idaho outfitters and guides board and to the requirements of chapter 21, title 36, Idaho Code;
(b) Use any outfitter’s or guide’s equipment or facilities or services if the participant does not have the ability to use such facilities or equipment or services safely without instructions until the participant has requested and received sufficient instruction to permit safe usage;
(c) Engage in any harmful conduct, or willfully or negligently engage in any type of conduct which contributes to or causes injury to any person;
(d) Embark on any self-initiated activity without first informing the outfitter or guide of his intentions and receiving permission from the outfitter or guide to engage in such self-initiated activity.
. Idaho Code § 6-1206 provides:
6-1206. LIABILITY OF OUTFITTERS AND GUIDES, (a) No licensed outfitter or guide acting in the course of his employment shall be liable to a participant for damages or injuries to such participant unless such damage or injury was directly or proximately caused by failure of the outfitter or guide to comply with the duties placed on him by chapter 21, title 36, Idaho Code, or by the rules of the Idaho outfitters and guides board, or by the duties placed on such outfitter or guide by the provisions of this chapter.
(b) The limitations on liability created by this chapter shall apply only to outfitters or guides appropriately licensed under the provisions of chapter 21, title 36, Idaho Code, and only when the outfitter or guide is acting within the course of his employment. In the event that there is damage or injury to a participant by the action of an outfitter or guide, and there is no exemption for liability for such outfitter or guide under the provisions of this act, the rules of negligence and comparative negligence existing in the laws of the state of Idaho shall apply.
Dissenting Opinion
dissenting.
I respectfully dissent from the Court’s decision on the basis that it ignores longstanding law in Idaho governing the landlord-tenant relationship and the existing law of premises liability. It also deviates from this Court’s decisions holding that generally one is free to contract to absolve oneself from certain duties and liabilities with only two exceptions: (1) one party is at an obvious disadvantage in bargaining power; or (2) a public duty is involved (public utility companies, common carriers). Lee v. Sun Valley Company,
There is also no suggestion here that the first exception applies, i.e., that either party was at an obvious disadvantage in bargaining power. Although it might often be the case that a tenant has less bargaining power than the landlord, there is certainly no evidence offered here that that is the case in this particular situation. Depending upon market conditions, a tenant might have superior bargaining power in a rental market oversupplied with available properties. The only basis upon which plaintiff might challenge the exculpatory clause in this case that the landlord had a “public duty.”
This Court specifically addressed the public duty exception in Lee v. Sun Valley Company, supra. In that case, Sun Valley Company, which was a licensed outfitter and guide, required guests electing to participate in equestrian trail rides to sign a “Rental Agreement — Saddle Animals for Hire” which stated in pertinent part that:
Upon my acceptance of horse and equipment, I acknowledge that I assume full responsibility for my safety. I further understand that I ride at my own risk, and I agree to hold the above entity, its officers, employees, etc., harmless from every and all claim which may arise from injury, which might occur from use of said horse and/or equipment, in favor of myself, my heirs, representatives, or dependents. I understand that the stable does not represent or warrant the quality or character of the horse furnished.
In determining the enforceability of that exculpatory clause, this Court held that I.C. § 6-1201 imposed a public duty upon Sun Valley Company, rendering the exculpatory clause unenforceable. The important distinction between that case and the present case, however, is that § 6-1201 granted a limited liability to licensed outfitters and guides in exchange for adherence to specific requirements of § 6-1201. In making its ruling in Lee v. Sun Valley Company, this Court stated as follows:
We do not attempt to articulate a general rule applicable to all statutes. However, we do hold where the legislature had addressed the rights and duties pertaining to personal injuries arising out of the relationshipbetween two groups, Le., employer-employees, outfitters and guides/participants, and has granted, limited liability to one group in exchange for adherence to specific duties, then such duties become a ‘public duty’ within the exception to the general rule validating exculpatory contracts. (Emphasis added.)
In the present case, there is nothing in § 6-320 granting any favorable limited liability to landlords in exchange for adherence to the duties prescribed in the statute, which is entirely different from I.C. § 6-1201 which was involved in Lee v. Sun Valley Company, supra. There is no basis, therefore, on which to hold that I.C. § 6-320 imposed any “public duty on landlords. Accordingly, the general rule firmly established in Rawlings v. Layne & Bowler Pump Company, supra; and Anderson & Nafziger v. G.T. Newcomb, Inc., supra, should not be ignored.
It should also be noted that as stated by the majority, I.C. § 6-320 is a strict liability statute. Silver Creek Computers, Inc. v. Petra, Inc.,
Apart from the fact that I.C. § 6-320 did not impose a public duty upon landowners for the reasons already discussed, in the present case plaintiff has no right to rely upon that statute in any event. The statute specifically requires that before a tenant may file an action under that section, he must give his landlord three days’ written notice of each defect in the premises or each breach of the rental agreement upon which any action will be premised, which was clearly not done in the present case. Additionally, there is nothing in I.C. § 6-320(d) to indicate that it was intended by the legislature to be applied to causes of action for personal injury in any event. Reading the entirety of the statute indicates that the legislature never intended the statute to apply to an action for personal injuries, but rather intended the statute only to provide a means to enforce a tenant’s right to require repair or cure of defects in the premises that render the premises less than habitable. As noted above, this Court should not utilize this statute to produce a major change in the law of premises liability as it pertains to personal injuries to tenants.
