Julio Pajaro v. South Georgia Bank

793 S.E.2d 209, 339 Ga. App. 334, 2016 Ga. App. LEXIS 622, 2016 WL 6561527
CourtCourt of Appeals of Georgia
DecidedNovember 4, 2016
DocketA16A1125
StatusPublished
Cited by3 cases

This text of 793 S.E.2d 209 (Julio Pajaro v. South Georgia Bank) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Julio Pajaro v. South Georgia Bank, 793 S.E.2d 209, 339 Ga. App. 334, 2016 Ga. App. LEXIS 622, 2016 WL 6561527 (Ga. Ct. App. 2016).

Opinion

McFADDEN, Judge.

Julio Pajaro was injured in the collapse of a staircase on commercial premises that he leased from South Georgia Bank (hereinafter, the landlord). He and his wife (collectively, the appellants) brought this action against the landlord, asserting claims for defective construction, failure to repair, failure to warn, and loss of consortium. As detailed below, we affirm the grant of summary judgment on the claims for failure to repair and failure to warn, because there are no genuine issues of material fact as to those claims. We reverse the grant of summary judgment as to the claims for defective construction and loss of consortium, however, because genuine issues of material fact exist as to those claims.

On appeal from the grant of summary judgment this [cjourt conducts a de novo review of the evidence to determine whether there is a genuine issue of material fact and whether the undisputed facts, viewed in the light most favorable to the nonmoving party, warrant judgment as a matter of law.

*335 Campbell v. Landings Assn., 289 Ga. 617, 618 (713 SE2d 860) (2011) (citations omitted). So viewed, the evidence shows that the landlord acquired the premises at issue in December 2009. At that time, Pajaro leased the premises for his medical practice. The landlord did not have the premises inspected either before or after the acquisition, but a representative of the landlord did a walk-through of the premises with Pajaro, and Pajaro requested that the landlord paint a wooden, exterior staircase at the back of the premises that led to the second floor.

In January 2010, Pajaro and the landlord entered into a lease of the premises. As to repairs, the lease provided:

During the lease term, Tenant shall make, at Tenant’s expense, all necessary repairs to the Leased Premises. Repairs shall include such items as routine repairs of floors, wall, ceilings, and other parts of the Leased Premises damaged or worn through normal occupancy, except for major mechanical systems or the roof, subject to the obligations of the parties otherwise set forth in this Lease. Landlord at its own expense shall make all necessary repairs to major mechanical systems, including but not limited to HVAC Units, plumbing and septic system.

On May 3, 2012, as Pajaro stepped from the second floor space onto the back exterior staircase, the staircase collapsed, causing Pajaro to fall more than 15 feet to the ground and injuring him. Before that point, Pajaro had not perceived any structural or safety problem with the staircase.

The appellants’ expert witness, a licensed commercial and residential contractor, opined that construction defects had caused the staircase to collapse; he opined that the staircase had been built with nongalvanized nails that had rusted over time, and that portions of wooden posts had not been properly sealed and caulked, leading them to rot. It is undisputed that the landlord was not in possession of the property, was not involved in the construction of the staircase and, at the time of Pajaro’s fall, had never made any repairs or modifications to the staircase. The appellants’ expert witness opined, however, that “the unsafe conditions of the staircase could and would have been discovered if the staircase had been completely inspected by the [landlord] when it acquired title to the property[.]”

Because the landlord was not in possession of the property, it is “subject to tort liability only under the provisions of OCGA § 44-7-14.” Martin v. Johnson-Lemon, 271 Ga. 120, 122 (1) (516 SE2d 66) (1999). *336 That Code section, which pertinently provides that an out-of-possession landlord “is responsible for damages arising from defective construction or for damages arising from the failure to keep the premises in repair,” OCGA § 44-7-14, expressly limits the potential liability of out-of-possession landlords to these two sets of circumstances. Martin v. Johnson-Lemon, 271 Ga. at 125 (3); Martin v. Hansen, 326 Ga. App. 91, 92 (1) (755 SE2d 892) (2014); Rainey v. 1600 Peachtree, LLC, 255 Ga. App. 299, 300 (565 SE2d 517) (2002). Perhaps due to the limitations of OCGA § 44-7-14, the appellants argue that another Code section, OCGA § 44-7-13, applies to this case. However, OCGA § 44-7-13, which requires a landlord to “keep the premises in repair,” does not impose tort liability on a landlord. Colquitt v. Rowland, 265 Ga. 905, 907 (2) (463 SE2d 491) (1995).

The trial court granted summary judgment on claims for defective construction, failure to repair, failure to warn, and loss of consortium.

1. Defective construction.

The general rule is that “the liability of a landlord for defective construction exists only in cases where the structure is built by [the landlord] in person or under [the landlord’s] supervision or direction.” Martin v. Johnson-Lemon, 271 Ga. at 124 (2) (b) (citations and punctuation omitted). Our courts have recognized a limited exception to this rule in circumstances where the defective structure was “constructed by a predecessor in title, and the landlord knew or by the exercise of reasonable diligence could have known of its improper construction before the tenancy was created[.]” Flagler Co. v. Savage, 258 Ga. 335, 337 (2) (368 SE2d 504) (1988) (citation and emphasis omitted). In such circumstance, the landlord “wouldbe answerable to the tenant . . . for injuries sustained by reason of [the landlord’s] failure to put the premises in a safe condition, if the person sustaining the injuries could not have avoided the same by the exercise of ordinary care.” Id. (citation and emphasis omitted). Our Supreme Court has explained that, although this limited exception “[a]t first glance . . . would appear to contradict the precise terms of OCGA § 44-7-14[,]” the exception could be supported because a purchaser of rental property has “unparalleled opportunities... to discover defects in structures erected by predecessors-in-title” through means such as structural inspections. Martin v. Johnson-Lemon, 271 Ga. at 126 (4), n. 16. See also Gainey v. Smacky’s Investments, 287 Ga. App. 529, 531 (2) (b) (652 SE2d 167) (2007); Rainey, 255 Ga.App. at 301. While there is “no absolute duty of inspection upon a landlord to discover defects in the premises prior to leasing them,” Lonard v. Cooper & Sugrue Properties, 214 Ga. App. 862, 864 (449 SE2d 348) (1994) (citations omitted), the landlord may be liable if the alleged defect “constitutes *337

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793 S.E.2d 209, 339 Ga. App. 334, 2016 Ga. App. LEXIS 622, 2016 WL 6561527, Counsel Stack Legal Research, https://law.counselstack.com/opinion/julio-pajaro-v-south-georgia-bank-gactapp-2016.