Brief Fact Summary. The Court of Appeals of Michigan awarded Mobil Oil Corp.’s (Plaintiff) Motion for Summary Judgment in Thorn’s (Defendant) breach of contract action. The court denied Defendant’s personal injury counterclaim on the basis that “an action in tort could not properly be predicated by a lessee upon a breach by a lessor of an agreement to make repairs.” Defendant sought review.
Synopsis of Rule of Law. A lessor of land is subject to liability for physical harm caused to his lessee and others upon the land with the consent of the lessee or his sublessee by a condition of disrepair existing before or arising after the lessee has taken possession if (a) the lessor, as such, has contracted by a covenant in the lease or otherwise to keep the land in repair; (b) the disrepair creates an unreasonable risk to persons upon the land which the performance of the lessor’s agreement would have prevented; and (c) the lessor fails to exercise reasonable care to perform his contract. Restatement (Second) of Torts Section: 357.
Issue. Did the longstanding rule still apply, as the lower courts had confirmed, that an action in tort could not have been predicated, by a lessee, upon a breach by the lessor of an agreement to make repairs?
Held. No. The court determined that the old principle no longer applied. It held that the lessor could have been properly held liable for personal injuries that resulted from his failure to make repairs pursuant to the lease provision.
The Court further adopted the rule stated in 2 Restatement Torts, 2d, 357:A lessor of land is subject to liability for physical harm caused to his lessee and others upon the land with the consent of the lessee or his sublessee by a condition of disrepair existing before or arising after the lessee has taken possession if(a) the lessor, as such, has contracted by a covenant in the lease or otherwise to keep the land in repair, and(b) the disrepair creates an unreasonable risk to persons upon the land which the performance of the lessor's agreement would have prevented, and(c) the lessor fails to exercise reasonable care to perform his contract, Tenants are regarded as their landlord's invitees.
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