Landlord Is Liable for Negligence on Property It Leases to Tenant

April 22, 2019

What Happened: This case began when an Alaska Marine Highway System (AMHS) employee fell 15 feet after the passenger ramp she was operating collapsed. The employee sued the landlord, the Port owner, for negligence due to a defect on the property. A federal jury awarded her more than $16 million in damages. The landlord appealed, claiming that the tenant, AMHS, was liable because it had exclusive use of the terminal property where the accident occurred and asked the court to issue a declaration to that effect.

What Happened: This case began when an Alaska Marine Highway System (AMHS) employee fell 15 feet after the passenger ramp she was operating collapsed. The employee sued the landlord, the Port owner, for negligence due to a defect on the property. A federal jury awarded her more than $16 million in damages. The landlord appealed, claiming that the tenant, AMHS, was liable because it had exclusive use of the terminal property where the accident occurred and asked the court to issue a declaration to that effect. Because the case was based on Washington law, the federal court of appeal asked the state court to weigh in on the negligence issue.

Decision: The Washington court issued a declaration stating that under state law, the landlord could, in fact, be liable for the negligence that occurred on the leased property.

Reasoning: The lease gave AMHS priority rather than exclusive use of the property. It specifically provided that the Port, as landlord, was responsible for maintaining and repairing the property and free to lease it to other tenants, the court explained. This degree of control was adequate to make the Port liable for negligence for a defect on the property even if though it leased priority use of that property to AMHS.

  • Adamson v. Port of Bellingham, April 2019

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