[Contracts] McCutcheon v. United States Homes Corp.

McCutcheon v. United States Homes Corp. 
Washington Supreme Court, 1971 
79 Wn.2d 443, 486 P.2d 1093

I. Facts

Two cases consolidated on appeal. The (P) Norma McCutcheon, who was a tenant of the (D) United Homes Corp., fell down an unlighted flight of stairs lading from her apartment. She sued in tort and alleged negligence by the (D) because the lights were not on at the top and bottom of the stairs. (P) Douglas Fuller, also a tenant, was injured as well descending the outside stairs of his apartment. He also alleges negligence. (D)'s answer alleged that each (P) had signed a form which included an exculpatory clause which stipulated that the (D) would not be liable for any injury to Lessees on the premises of the building.

II. Procedure

The trial court granted a summary judgement of dismissal.

III. Issue

Whether the lessor of a residential unit within a multi-family dwelling complex may exculpate itself from liability from personal injuries sustained by a tenant, which injury resulted from the lessor's own negligence in maintenance of the "common areas".

IV. Rule

The common law rule is that a lessor of a portion of his premises but retains control over the common areas has a duty to use reasonable care to keep them in safe condition. The landlord has a duty of affirmative conduct and obligation to exercise reasonable care to inspect and repair the portions of the premises for protection of the lessee.

V. (D)'s Argument

Lessor can exculpate itself from liability. Because of freedom to contract, such a clause is not against public policy for the reason that a landlord-tenant relationship relates to private affairs where parties stand on equal terms and not public interest. Court's response - No, under modern circumstances, the tenant is wholly dependent upon the landlord to provide reasonably for safe use of common areas. Rule Used - An exculpatory clause may be legal when it does not fall greatly below the standard established by law. Such a clause destroys the landlord-tenant relationship. The rule used by the (D) is not really used by the majority of courts. The leasing business has grown substantially and affects thousands of people.

VI. Holding

This clause offends public policy and will not be enforced. Reversed and the case is remanded for trial.