Carroll v. Am. Empire Surplus Lines Ins. Co.
Carroll v. Am. Empire Surplus Lines Ins. Co.
Opinion of the Court
Before the Court is Defendant Airbnb, Inc.'s Motion for Summary Judgment (Doc. 111). For the following reasons, the Motion is GRANTED.
BACKGROUND
This action arises from injuries sustained as a result of the collapse of a staircase. Andrew Callard, plaintiff in the now-settled consolidated action, rented a property at 1423 Royal Street in New Orleans, Louisiana ("the Property") from its owners, Defendants Mark Hamilton and Lynn Schwarzhoff (the "Owners"), using the website maintained by Defendant Airbnb, Inc. ("Airbnb").
Defendant Airbnb now moves for summary judgment dismissing Plaintiffs' claims against it, arguing that under Louisiana law Defendant Airbnb owed no duty to Plaintiffs and that Airbnb had no knowledge of the defect that allegedly caused Plaintiffs' injuries. Plaintiffs oppose.
LEGAL STANDARD
Summary judgment is appropriate if "the record, including depositions, documents, electronically stored information, affidavits or declarations, stipulations..., admissions, interrogatory answers, or other materials" "shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law."
In determining whether the movant is entitled to summary judgment, the Court views facts in the light most favorable to the non-movant and draws all reasonable inferences in his favor.
LAW AND ANALYSIS
Plaintiffs bring negligence claims against Defendant Airbnb, asserting that Airbnb knew or should have known of the defect that caused the stairs to collapse and negligently failed to correct the defect or remove the Property from its listings.
(1) the defendant had a duty to conform his or her conduct to a specific standard of care; (2) the defendant failed to conform his or her conduct to the appropriate standard of care; (3) the defendant's substandard conduct was a cause-in-fact of the plaintiff's injuries; (4) the defendant's substandard conduct was a legal cause of the plaintiff's injuries; and (5) actual damages.17
Whether the defendant owed the plaintiff a duty is a threshold issue in any negligence action.
*771Additionally, Louisiana Civil Code articles 2317.1 and 2322 provide that a person who owns or controls a building is liable for harm caused by its defect, but only when the plaintiff can prove the following elements:
(1) ownership [or control] of the building; (2) the owner knew or, in the exercise of reasonable care, should have known of the ruin or defect; (3) the damage could have been prevented by the exercise of reasonable care; (4) the defendant failed to exercise such reasonable care; and (5) causation.20
A finding of custodial liability under article 2317.1 and 2322 is "predicated upon a finding of negligence."
Defendant Airbnb argues that it is not liable to Plaintiffs for two reasons: a) Defendant Airbnb owed no duty to Plaintiffs because it neither owned nor controlled the Property on which Plaintiff Carroll was injured, and b) Defendant Airbnb had no knowledge of the defective condition of the stairs, foreclosing liability under articles 2317.1 and 2322. Plaintiffs respond by pointing to two sources of duty that they claim Defendant Airbnb owed to them. Plaintiffs argue that Defendant Airbnb had a special relationship with either the Plaintiffs or Owners such that Airbnb had a duty to prevent the Owners from harming third parties like Plaintiffs. And Plaintiffs argue that Defendant Airbnb had sufficient control over the Property so as to become liable under Louisiana Civil Code articles 2317.1 and 2322. Plaintiffs do not specifically respond to the knowledge issue.
I. Duty Pursuant to a Special Relationship
Plaintiffs argue that Defendant Airbnb owed them a duty under article 2315 because a special relationship existed between Airbnb and either Plaintiff Carroll or the Owners, though Plaintiffs are not clear as to which.
Louisiana courts have found that if a defendant has a sufficiently close relationship with a wrongdoer, the defendant may owe a duty to third persons to protect them from harm caused by the wrongdoer.
Louisiana courts also look for a special relationship when imposing a duty upon a defendant whose breach was the failure to act at all.
Plaintiffs cite two cases to support their assertion that Plaintiffs and Defendant Airbnb had the special relationship required to trigger a duty to act. In Fox v. Board of Supervisors of Louisiana State University and Agricultural and Mechanical College , which tends to support finding no duty, a student from another college who broke his neck at a tournament hosted by the LSU rugby club sued LSU for failing to ensure that the tournament was conducted with adequate safety.
In Smith v. Orkin Exterminating Co. , a homeowner hired the defendant company to provide exterminating services in her home and sued when the defendant's employee sexually assaulted her.
*773Plaintiffs argue that Defendant Airbnb is analogous to the defendant company in Smith because Airbnb sends guests into the homes of its hosts.
Plaintiffs characterize the relationship between Airbnb and its users differently, but there is no dispute over the underlying facts. In keeping with the characterization of Airbnb's role as a mere intermediary, Plaintiffs state that, "Airbnb provides an online platform that provides property owners, or Hosts, access to Guests, individuals seeking lodging."
*774Furthermore, unlike the company in Smith , Defendant Airbnb was not in the best position to prevent the harm that occurred. Airbnb had no right to inspect the Property before the incident and no right to authorize repairs.
Accordingly, Defendant Airbnb did not owe Plaintiffs a duty because of a special relationship between Plaintiffs and Airbnb. Having found above that no relationship between Airbnb and Defendant Owners imposed a duty on Airbnb, this Court concludes that Airbnb had no duty pursuant to the general negligence principles of article 2315 to protect Plaintiffs from the harm they suffered.
II. Duty Arising From Custody or Garde
Plaintiffs also assert that Defendant Airbnb owed them a duty because of the custody or control over the Property that Airbnb retained. The duty of a custodian of a building under articles 2317.1 and 2322 is to "keep [it] in a reasonably safe condition[, and to] discover any unreasonably dangerous condition on his premises and either correct the condition or warn potential victims of its existence."
Plaintiffs cannot establish that Defendant Airbnb had garde over the Property because they fail to identify a dispute of material fact as to whether Defendant Airbnb had a right of direction and control over it.
In determining whether a party has a legal relationship with a thing so as to have the right of direction and control over it, courts have looked to a variety of factors, including whether the party has the right to use, alienate, encumber, or lease the thing, or otherwise grant a right of use to others[, see Doughty , 576 So.2d at 464-65 ; Smith v. State of Louisiana,620 So.2d 1172 , 1183-84 (La. Ct. App. 1st Cir. 1992) ]; whether the party has the right to authorize alterations or repairs to the thing[, Butler v. Re/Max New Orleans Props., Inc.,828 So.2d 43 (La. Ct. App. 4th Cir. 2002) ], and whether the party has an unfettered right to access the thing at will, versus only a limited access to enter[, see Bethea v. Great Atlantic & Pacific Tea Co.,22 So.3d 1114 , 1116 (La. Ct. App. 4th Cir. 2009) ].54
Plaintiffs make a variety of factual claims about the nature of the relationship between Defendant Airbnb and the Property, some of which are irrelevant to the issue of garde and some of which lack evidentiary support. Plaintiffs argue that *775Defendant Airbnb is the "gatekeeper" to the Property, asserting that Airbnb is the "only way" that they gained access to the Property and that Plaintiff Carroll would not have been at the Property had it not been listed with Airbnb.
Plaintiffs also repeatedly assert that Airbnb had the right to inspect the Property.
Plaintiffs list a variety of additional rights that Defendant Airbnb maintained-including the right to remove the Property's listing from its website at will, to require repairs after an accident before re-listing the Property, and the right to conduct background checks of Defendant Owners-none of which bear on whether Airbnb had garde over the Property itself. Plaintiffs summarized their argument as, "control of the platform is control of the property."
*776III. Notice or Constructive Notice of the Defect
Even if Defendant Airbnb did have garde over the Property, Plaintiffs have produced no evidence that Airbnb knew or should have known of the defect in the stairs, as required by article 2322. In order to recover under a theory of custodial liability, "a plaintiff must prove that the defendant had actual or constructive knowledge of the vice or defect. Constructive knowledge 'imposes a reasonable duty to discover apparent defects in things under the defendant's garde.' "
Plaintiffs do not dispute that Defendant Airbnb had no actual knowledge of any defect in the stairs, and they also fail to cite any evidence that Defendant Airbnb should have known of the condition of the stairs. There is no evidence of the length of time that the alleged defect in the stairs existed, that an inspection would have revealed the condition of the stairs, or that any party had any suspicion that the stairs were dangerous. Accordingly, Plaintiffs have failed to carry their burden at this summary judgment stage on the issue of knowledge.
CONCLUSION
Plaintiffs fail to establish a dispute over a fact material to the question of whether Defendant Airbnb owed a duty to Plaintiffs under either the general negligence obligations of article 2315 or the obligations associated with custody of a thing under articles 2317.1 and 2322. Plaintiffs further fail to cite to any evidence suggesting that Defendant Airbnb knew or should have known of the condition of the stairs, as required by article 2322. Because the Court finds that Defendant Airbnb owed no duty to Plaintiffs and had no actual or constructive knowledge of any defect in the stairs, Defendant Airbnb's Motion for Summary Judgment is GRANTED and Plaintiffs' claims against it are DISMISSED with prejudice.
Doc. 111-2 at 3.
See Docs. 1 at 3, 111-2 at 3.
See Doc. 1 at 4.
Doc. 1 at 4.
Docs. 1, 44.
Docs. 1, 44.
Fed. R. Civ. P. 56.
Anderson v. Liberty Lobby, Inc.,
Coleman v. Houston Indep. Sch. Dist.,
Engstrom v. First Nat'l Bank of Eagle Lake,
Celotex Corp. v. Catrett,
Johnson v. Deep E. Tex. Reg. Narcotics Trafficking Task Force,
Badon v. R J R Nabisco, Inc.,
Boudreaux v. Banctec, Inc.,
Doc. 44 at 4.
La. Civ. Code art. 2315.
Bufkin v. Felipe's Louisiana, LLC,
Lemann v. Essen Lane Daiquiris, Inc.,
See McLachlan v. New York Life Ins. Co.,
Broussard v. State ex rel. Office of State Bldgs.,
Jackson v. Brumfield,
Vinccinelli v. Musso,
Doc. 154 at 9-13.
See Frank L. Maraist & Thomas C. Galligan, Jr., Louisiana Tort Law § 5.07[4] (2004 ed. Supp. 2016). The authors also note that doctors have a duty to warn third parties of danger posed by their patients, but only when the patient has communicated an immediate threat of physical violence to the doctor. Here, Plaintiffs do not allege that Defendant Airbnb had knowledge of the danger the stairs posed.
See
See
See Doc. 44 at ¶¶ 15-17.
See Fox v. Bd. of Sup'rs of La. State Univ. & Agr. & Mech. Coll.,
Doc. 154 at 10 (quoting In re FEMA Trailer Formaldehyde ,
See In re FEMA Trailer Formaldehyde ,
Fox ,
Smith v. Orkin Exterminating Co.,
Id. at 366-67.
See Doc. 154 at 11.
See Smith ,
See
Doc. 71-10 at 2.
Doc. 71-10 at 2, 3-4. Plaintiffs were not party to the Terms of Service, and so are probably not bound by its terms. However, Plaintiffs only connection to Defendant Airbnb is the rental of the Property conducted pursuant to the Terms of Service, and so the document is relevant to describe the nature of Defendant Airbnb's role in the transaction.
See Doc. 71-10 at 3-4; Smith ,
Doc. 154 at 2.
Doc. 154 at 2.
Doc. 154 at 2.
Doc. 154 at 3-5.
See, e.g. , Waddles v. LaCour,
Plaintiffs cite no evidence to support any assertion to the contrary.
Vinccinelli ,
See Dupree v. City of New Orleans,
Dupree ,
In re FEMA Trailer Formaldehyde ,
Doc. 154 at 14.
Doc. 154 at 14
See Doc. 154 at 11 ("Airbnb can inspect properties for safety related concerns in its sole discretion."), 14 ("Airbnb has the right to inspect or not inspect the property....").
Doc. 71-7 at 42.
Doc. 154-2 at 11.
Oral Argument, Dec. 6, 2017.
See In re FEMA Trailer Formaldehyde ,
See Butler v. Re/max New Orleans Properties, Inc.,
Daniel v. Clarion Inn & Suites,
Flenner v. Sewerage & Water Bd. of New Orleans,
See also Ukudi v. McMoran Oil & Gas, L.L.C.,
Reference
- Full Case Name
- Justin CARROLL v. AMERICAN EMPIRE SURPLUS LINES INSURANCE CO.
- Cited By
- 11 cases
- Status
- Published