Residential Homeowners Continue Avoiding Sidewalk Liability in New Jersey

The New Jersey Appellate Division has refused to extend sidewalk liability to homeowners of residential properties in a recent decision. In Gottsleben v. Annese, the plaintiff attempted to expand the principles of sidewalk liability for commercial property owners to residential property owners after slipping and falling on an icy public sidewalk in front of the defendants’ house. The defendants’ house was unoccupied at the time of the fall due to upgrades and renovations that were being made with the intent of moving in once complete. In order to overcome New Jersey’s limits of liability against residential property owners, the plaintiff argued that the defendants were liable for the sidewalk’s condition due to the profitable renovations that were being made. New Jersey law has imposed a longstanding duty on commercial property owners to keep public sidewalks in front of their premises safe. However, this liability has never been extended to residential property owners unless their conduct has been proven to worsen the sidewalk’s natural condition. 

The plaintiff contended that since the defendants’ property was vacant for renovation purposes, thus increasing the value of the home, it should be considered a commercial property for liability purposes. The Court refused to extend liability to residential homeowners simply because the property is unoccupied. Instead, the Court determined that the property was residential due to the owners’ intent to move in. Evidence showed that the owners had not acquired the house as an investment property to be improved and then sold, nor did they plan to lease the house to others.  The profitability of the renovations to the property did not change the property’s residential character. Therefore, the court held the defendants not liable for the injuries that the plaintiff sustained on the residential property’s sidewalk. 

In similar circumstances, it is crucial that insurance companies understand the purpose of their insured’s property expenditures. When a company insures a property owner who has invested in a property with the intent of selling or leasing it for profitability, the insured could have liability for injuries sustained by third parties on the property’s adjacent sidewalks. However, when insureds obtain insurance for a property in which they reside or intend to reside, liability for injuries to pedestrians on adjacent sidewalks is unlikely.  Homeowner insurers should obtain information regarding the intended use of a potential insured’s property prior to the commencement of coverage to adequately protect themselves from legal liability for third-party injuries.  And in the event of a claim, the residential nature of the insured property is still a strong defense to claims for injuries on adjacent sidewalks.