What Is Commercial Premises Liability?

Commercial premises liability (CPL) is a legal term that refers to a duty of care owed by a business owner to their customers. If a customer is injured on your property, you could be held legally responsible for the damages they incur.

CPL can be complex and come with many potential outcomes depending on the specific circumstances. It is essential for business owners to understand how CPL will affect their company, the responsibilities they have towards their customers, and the potential settlement amounts that may result from a CPL lawsuit. Here is everything you need about commercial premises.

What Are the Elements of CPL?

CPL is not an area of personal injury law regulated by statute. Because of this, no statutes help clarify when a duty of care is owed to a customer on your property. Instead, a judge or jury decides CPL cases on a case-by-case basis.

Many factors are involved in determining if you were responsible for an accident that occurred on your property, and the outcome can vary greatly depending on which factors the court finds most relevant. The courts will consider the following several factors when deciding whether to find you liable for an accident:

1. i) Did You Owe the Customer a Duty of Care?- If you knowingly put your customer in danger, you may be liable for any injuries they suffer.
2. ii) What Was The Nature of Your Control Over the Property?- If you were legally responsible for maintaining the property, you may be liable for any dangerous conditions. For example, suppose a broken step caused a customer to fall and injure themselves while on your property. In that case, the court will likely find that you were responsible for maintaining that area of the premises.

iii) Was There Evidence to Support The Claim?- If you were found not to have acted negligently towards your customer, you will likely find that you are not liable for the accident. In law, negligence means the absence of ordinary care. It requires an awareness of a potentially dangerous situation and the failure to act to avoid danger or mitigate its effects.

1. iv) Were There Any Mitigating Circumstances?- A jury may decide that it’s more likely than not that the accident would not have happened if the business owner had done something differently. This is known as “the reasonable man test.” In such a case, a judge could consider this when determining whether or not to award damages. For example, courts have ruled that negligent or unsafe conditions, open windows and doors, and broken stairs make a business owner liable for an accident. Personal injury attorney Pendergrass can help determine whether you can rely on mitigating circumstances.

What Are the Different Outcomes for CPL?

There are many different possibilities for an outcome of a commercial premises case. While the specific settlement amount may vary greatly depending on the circumstances, several common outcomes exist.

1. i) Offer to pay- Sometimes, you can reach an offer to settle before trial. If your insurance company determines that they cannot prove gross negligence on your part, they may decide to offer to settle to avoid incurring additional legal fees and court costs. You will be responsible for paying your attorney’s fees if you accept an offer from your insurance company or the complainant.
2. ii) Settle with insurance – If you have insurance, your insurance company will work to negotiate a settlement with the other party. If you were not grossly negligent and if the other party does not have sufficient evidence to prove gross negligence on your part, then you may be able to ensure the case.

iii) Settle without insurance – In cases where it is unlikely that you will be able to convince your insurance company or your attorney that you are not liable for the accident, then you may decide to settle directly with the complainant. In some states, if you are found not liable for an accident and do not have insurance coverage, then it can be not easy to make a counteroffer to settle.

1. iv) Lose at Trial – If you are liable for an accident, the court will decide how much to award the complainant in damages. You will be responsible for paying this judgment unless you can successfully appeal the court’s ruling.
2. v) Lose by Appeal – If a court awards the complainant damages, then they may file an appeal of your decision. If they win their appeal, you will be responsible for paying the settlement amount previously awarded to them in addition to additional legal fees and court costs.

vi)Win at trial- If you are not liable for an accident, then the court will decide on how much to award you in attorney’s fees and court costs.

In conclusion, for businesses, CPL is a duty of care owed to customers. In many cases, you may not be able to convince a jury that you were grossly negligent and had no reason to believe that your customer was at risk of injury. However, suppose you are not found negligent or grossly negligent. In that case, determining liability will significantly impact your financial future and the amount of damages that may be awarded.