Harrington v. Neutron Holdings

2024 COA 120
CourtColorado Court of Appeals
DecidedNovember 14, 2024
Docket23CA1663
StatusPublished
Cited by1 cases

This text of 2024 COA 120 (Harrington v. Neutron Holdings) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harrington v. Neutron Holdings, 2024 COA 120 (Colo. Ct. App. 2024).

Opinion

The summaries of the Colorado Court of Appeals published opinions constitute no part of the opinion of the division but have been prepared by the division for the convenience of the reader. The summaries may not be cited or relied upon as they are not the official language of the division. Any discrepancy between the language in the summary and in the opinion should be resolved in favor of the language in the opinion.

SUMMARY November 14, 2024

2024COA120

No. 23CA1663, Harrington v. Neutron Holdings — Torts — Negligence — Duty of Care — Electric Scooters

A division of the court of appeals holds that, without more

than the allegations made in this case, a company that rents

electric scooters to third parties does not, by that act alone, owe a

duty to the public to protect against injuries caused by users of its

scooters. The division does not address the circumstances under

which such a duty may arise based on other acts or omissions. COLORADO COURT OF APPEALS 2024COA120

Court of Appeals No. 23CA1663 City and County of Denver District Court No. 23CV30663 Honorable Jill D. Dorancy, Judge

Josanna Harrington,

Plaintiff-Appellant,

v.

Neutron Holdings, Inc., d/b/a Limebike and/or Lime,

Defendant-Appellee.

JUDGMENT AFFIRMED

Division II Opinion by JUDGE SCHOCK Fox and Johnson, JJ., concur

Announced November 14, 2024

Muhaisen & Muhaisen, LLC, Wadi Muhaisen, Scott C. Hammersley, Denver, Colorado, for Plaintiff-Appellant

Wheeler Trigg O’Donnell LLP, Kevin J. Kuhn, Anne M. Anderson, Denver, Colorado; Hinshaw & Culbertson LLP, Steven R. Bonanno, Chicago, Illinois, for Defendant-Appellee ¶1 Electric scooters have permeated cities throughout the United

States in recent years, and Denver is no exception. And with new

technologies often come new twists on established legal principles.

This is such a case. Applying tort common law, we must determine

whether the companies that rent out those scooters owe a duty to

the public to protect against injuries caused by their customers.

¶2 Neutron Holdings, Inc., d/b/a Limebike and/or Lime (Lime), is

one such company. It rents electric scooters to the public by

placing them throughout Denver. After colliding with someone

riding a Lime scooter in the wrong direction, Josanna Harrington

sued Lime for negligence. The district court dismissed the claim,

concluding that Lime did not owe Harrington a duty to protect her

from harm caused by a third party’s use of its scooter.

¶3 On the facts alleged in this case, we agree with the district

court. In doing so, we do not address the circumstances under

which Lime might have such a duty as a result of its own acts or

omissions or based on allegations that are not made in this case.

We hold only that a company’s rental of electric scooters to third

parties does not, in and of itself, give rise to a duty to members of

1 the general public to protect them from users’ unsafe operation of

the scooters. We therefore affirm the dismissal of the claim.

I. Background

¶4 According to the allegations in the complaint, Harrington was

riding her bicycle one evening in a bike lane in downtown Denver

when she was hit and severely injured by an individual riding a

Lime scooter in the opposite direction. The person riding the

scooter — who Harrington alleges was intoxicated — fled the scene.

¶5 Harrington sued Lime for negligence.1 She alleged that “[b]y

placing scooters into the stream of commerce and littering them all

over [Denver], [Lime] had a duty to ensure that . . . users operated

[the scooters] in a safe manner to protect the public,” including

Harrington. She further alleged that Lime breached that duty by

• failing to check on the scooters or oversee users, instead

“simply drop[ping] [scooters] off throughout the city” and

relying on contractors to collect and recharge them;

1 Harrington also sued the unidentified rider of the scooter, named

as Jane Doe in the complaint, but that person was never served. See Rea v. Corrs. Corp. of Am., 2012 COA 11, ¶ 13 (“[N]amed but unserved defendants are not litigants for purposes of determining the appealability of an order under the final judgment rule.”).

2 • failing to properly inspect and maintain its scooters;

• failing to take measures to ensure that scooter users are

not intoxicated, even though many people in Denver use

Lime scooters to “go from bar to bar drinking”;

• failing to restrict scooters from being driven the wrong

way against traffic, despite their GPS capabilities and

other restrictions on where the scooters can be driven;

• failing to provide adequate warnings and operational

instructions to scooter users;

• failing to ensure that users know how to properly operate

the scooters;

• failing to inform users of relevant rules and regulations;

• failing to ensure that the person who rents the scooter is

the one actually operating it; and

• failing to properly regulate the speed of the scooters.

¶6 Lime moved to dismiss the complaint for failure to state a

claim upon which relief could be granted. It argued that

(1) Harrington’s claim was barred by the federal Graves

Amendment, 49 U.S.C. § 30106, which bars certain claims against

the owner of a rented motor vehicle; and (2) Harrington did not

3 allege facts plausibly showing that Lime owed her a duty of care.

Harrington argued in response that (1) the Graves Amendment did

not apply because she alleged that Lime had engaged in negligent

conduct, and (2) Lime owed her (and the public at large) a duty of

care based on its own operating procedures and Denver regulations.

¶7 The district court granted Lime’s motion and dismissed

Harrington’s claim. It first concluded that the applicability of the

Graves Amendment turned on whether Harrington had asserted an

actionable negligence claim against Lime. It then concluded that

she had not. Characterizing Harrington’s claim as one for

nonfeasance (failure to act) as opposed to misfeasance (active

misconduct), the district court determined that Harrington had not

alleged facts giving rise to a special relationship that would impose

a duty on Lime to protect her from harm caused by a third party.

II. Duty of Care

¶8 Harrington contends that the district court erred by

concluding that Lime did not owe her a legal duty to protect her

from the risk of harm caused by third parties’ use of its scooters.

We disagree. We hold that, without more than the allegations made

4 by Harrington in this case, Lime’s rental of scooters to third parties

does not give rise to such a duty on Lime to the public at large.2

A. Standard of Review and Applicable Law

¶9 We review de novo a district court’s dismissal for failure to

state a claim under C.R.C.P. 12(b)(5), applying the same standards

as the district court. N.M. v. Trujillo, 2017 CO 79, ¶ 18. In doing

so, we accept all allegations in the complaint as true and view them

in the light most favorable to the plaintiff to determine whether the

plaintiff has stated a “plausible claim for relief.” Id. at ¶¶ 18, 20.

Dismissal is proper “only when the facts alleged in the complaint

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Related

Harrington v. Neutron Holdings
2024 COA 120 (Colorado Court of Appeals, 2024)

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Bluebook (online)
2024 COA 120, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harrington-v-neutron-holdings-coloctapp-2024.