Owner Must Inspect After Eviction

Facts: A tenant restaurant defaulted on its lease by operating an after-hours dance club and by failing to pay its rent. The owner sued to evict the restaurant and won, but a week and a half after the eviction judgment was made, the restaurant was still operating, and a customer slipped and fell on the restaurant's dance floor due to a ceiling leak. The customer sued the restaurant and the owner for her injuries. The jury awarded the customer $385,440 in damages, and the owner appealed the award.

Decision: A California Appeals court ruled for the customer and returned the case to trial to divide liability between the owner and tenant.

Reasoning: The court found that the owner had the duty to inspect the property at the time the eviction judgment was issued. The owner was aware that the tenant had already violated its lease in two ways, that defaulting tenants can neglect property, and that an eviction judgment had been issued. Therefore, the court returned the case to trial to divide the liability between the owner and the tenant so that each party would pay the correct portion of the damages. The court also upheld the monetary award as an appropriate estimate of the customer's damages.

• Stone v. Center Trust Retail Properties, Inc., May 2008