Resort Property Owners Not Liable For Defects
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The North Carolina Supreme Court has recently ruled that property owners were not liable to short-term tenants who were injured when the balcony of rental property collapsed.
The ruling clarifies that there is no warranty of suitability in North Carolina concerning landlords who lease furnished premises for a short period. This ruling is consistent with the common law in North Carolina as it has existed for many years.
The law is different however with respect to residential real estate which is leased as a “primary residence.” With respect to a primary residence, the North Carolina General Assembly, years ago enacted a law which imposes upon landlords a warranty of suitability. The Residential Rental Agreement Act provides by statute that landlords impliedly warrant that furnished property would be initially suitable for occupancy with respect to a primary residency. Landlords, under this statute would be liable for personal injury caused by a defect in the property or from failure to repair any defective condition of the leased premises.
The case, Conley vs. Ingram was brought by a family who took a two week vacation at Emerald Isle, renting an ocean front cottage owned by the defendants. The family, including grandparents, sons, spouses, and grandchildren gathered for a group photo on the cottage’s second story deck. While the photograph was being made, the deck collapsed and various members of the family suffered personal injury. The trial court dismissed the case as a matter of law and held that the plaintiff’s could not sue the landlords for this defect. The North Carolina Court of Appeals reversed the trial court, holding that the landlords would be liable in that fact situation. However, the North Carolina Supreme Court, the highest court in the state, reversed the North Carolina Court of Appeals and the plaintiff’s case was again dismissed.
The Supreme Court wrote that under the common law, the landlord is under no duty to make repairs. In addition, the owner is not liable for personal injuries caused by failure to repair. The Supreme Court found that the Residential Rental Agreement act which protects renters of property to be used as a primary residence, does not apply to cover short-term leases which do not serve as the tenants primary residence. This ruling affirms that renters of short-term vacation property can not hold the property owner liable for personal injury caused by defect in the property or by failure to repair the property.
The Supreme Court wrote that they would not change the law but would leave it up to the North Carolina General Assembly to change the law so that short-term renters would be on equal footing with renters of a primary residence.