In an important ruling for commercial property owners, the New Jersey Supreme Court in Alejandra Padilla v. Young II An, (A-43-22) addressed the owners' obligations regarding the maintenance of public sidewalks and answered the question: Do owners of vacant commercial lots have a duty to maintain adjacent public sidewalks in reasonably good condition?
Background
In September 2019, plaintiff Alejandra Padilla alleges to have tripped and fell on a sidewalk adjacent to a vacant commercial lot in Camden, NJ. The lot in question was purchased in 1992 by Young An II and Myo Soon An. The owners had planned to develop a commercial building upon the property; however, financial constraints prevented the owners from ever seeing their plan come to fruition or obtaining liability insurance.
Padilla filed a complaint in April 2020, asserting that the owners' failure to maintain the sidewalk adjacent to the vacant lot constituted negligence, resulting in her injuries. Defendants moved for summary judgment, contending that the lot was vacant and not generating any income; therefore, they did not owe a duty of care to pedestrians upon the adjacent sidewalk. The trial court agreed, relying heavily on precedent in Abraham v. Gupta, 281 N.J. Super. 81 (App.Div.1995) (holding that commercial property owners' duty to maintain sidewalks did not extend to those abutting vacant lots). Defendants were dismissed on summary judgment.
Plaintiff appealed, and the Appellate Division affirmed. Plaintiff then appealed to the New Jersey Supreme Court, which granted certification to resolve the issue.
The Duty of Reasonable Care
Traditionally, New Jersey precedent has held that owners of commercial or residential properties abutting a public sidewalk were only liable for negligent construction or repair of the public sidewalk. Rather, the city or governing body was responsible for maintaining sidewalks in reasonably good condition. "Whether a person owes a duty of reasonable care toward another turns on whether the imposition of such a duty satisfies an abiding sense of basic fairness, under all circumstances in light of considerations of public policy." Hopkins v. Fox & Lazo Realtors, 132 N.J. 426, 439 (1993).
However, Stewart v. 104 Wallace Street, Inc., 87 N.J. 146 (1981), held that commercial landowners are responsible for "maintaining in reasonably good condition the sidewalks abutting their property and are liable to pedestrians injured as a result of their negligent failure to do so." The Stewart court established that commercial property owners carry the burden of responsibility for abutting public sidewalks, as they have ease of access to the sidewalk, thus increasing the property value. Further, Stewart held that commercial property owners are undoubtedly in "an ideal position to inspect sidewalks and take prompt action to cure defects." Notably, the Stewart court limited this liability to commercial properties and did not include residential property owners in its decision.
Supreme Court's Analysis and Holding
The New Jersey Supreme Court emphasized that the concept of "duty," as it pertains to a claim for negligence, hinges on fairness and public policy. New Jersey law imposes a duty on commercial property owners to maintain adjacent sidewalks, as established in Stewart. However, this duty has been limited by trial courts when the claim arises out of injuries sustained on a public sidewalk adjacent to vacant commercial properties, on the theory that the lack of income generated from a vacant lot negates the responsibility of the landowner. Abraham, 281 N.J. Super, at 82-85.
Now, the Supreme Court has rejected this narrow interpretation. The court ruled that all commercial landowners, including those of vacant lots, must maintain the public sidewalks abutting their properties in a reasonably safe condition. This ruling overrules prior decisions and introduces a clear, bright line rule: the duty to maintain sidewalks applies uniformly across all commercial properties whether the property is vacant or actively generating income.
Implications for Commercial Property Owners
The Supreme Court's decision reinforces the notion that ownership of a commercial property, vacant or not, comes with inherent responsibilities, including the upkeep of adjacent public sidewalks. This ruling aims to ensure consistency and fairness in sidewalk liability, avoiding the confusion and inconsistency that has plagued courts in the past when determining the scope of this duty.
This article originally appeared on Wood Smith Henning & Berman LLP.
About the Authors:
Alison McClave is a senior associate at Wood Smith Henning & Berman LLP. amcclave@wshblaw.com
Spenser F. Frieri is a partner at Wood Smith Henning & Berman LLP. sfrieri@wshblaw.com