Schuster v. Plaza Pacific Equities, Inc.

588 F. Supp. 61, 1984 U.S. Dist. LEXIS 15519
CourtDistrict Court, N.D. Georgia
DecidedJune 26, 1984
DocketCiv. A. C83-1844A
StatusPublished
Cited by1 cases

This text of 588 F. Supp. 61 (Schuster v. Plaza Pacific Equities, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schuster v. Plaza Pacific Equities, Inc., 588 F. Supp. 61, 1984 U.S. Dist. LEXIS 15519 (N.D. Ga. 1984).

Opinion

ORDER

FORRESTER, District Judge.

This action is before the court on plaintiffs’ motion for partial summary judgment and defendant’s motion for summary judgment. Plaintiffs’ complaint was filed in the State Court of DeKalb County on August 15, 1983. The complaint states that petitioners Harry W. Schuster, III, Gloria J. Schuster, and their children were tenants of apartment number 2370C in defendant’s apartment complex in DeKalb County, Georgia. Petitioner Michele Golgan-Hand and her minor child, Katherine Michele Hand, were tenants of apartment number 2370D. The complaint alleges that on or about April 10, 1983 a fire started in the furnace located in apartment 2370A and that the fire spread to petitioners’ apartments causing extensive damage. Plaintiffs allege that the fire was caused by the negligence of defendant in that “the furnace in apartment 2370A was in ill repair, had been previously malfunctioning, and was made up of a patchwork of parts, and, generally, could not be expected to operate properly.” Petitioners allege that defendant knew that the furnace in apartment 2370A was in a hazardous condition and that to permit a tenant to occupy apartment 2370 and operate the furnace would create a fire hazard. Plaintiffs seek compensatory damages for loss of their personal property, vindictive damages under O.C. G.A. § 51-12-6, exemplary damages in the amount of $300,000 pursuant to O.C.G.A. § 51-12-5, and expenses of litigation including reasonable attorney’s fees pursuant to O.C.G.A. § 13-6-11. Plaintiffs’ complaint was removed to this court by defendant on August 31, 1983.

Both of the motions for summary judgment before the court at this time concern the interpretation and enforceability of paragraphs 15 and 17 of the lease agreement between defendant and plaintiffs. Paragraph 15 states that:

Management shall not be liable for damage to resident’s property of any type for any reason or cause whatsoever, except where such is due to management’s negligence. Residents shall be responsible for obtaining fire, extended coverage and liability insurance with respect to apartment and contents. (Emphasis added).

Paragraph 17 of the lease agreement, entitled “Indemnification,” provides in pertinent part as follows:

Resident releases management from liability for and agrees to indemnify management against all losses incurred by management as a result of (a) resident’s failure to fulfill any condition of this agreement____

Plaintiffs’ motion for partial summary judgment asks this court to rule as a matter of law that paragraph 15 does not bar plaintiffs’ recovery in this action. Defendant’s motion for summary judgment asks this court to do the opposite and rule that paragraph 15, taken together with paragraph 17, is a complete bar to plaintiffs’ recovery and entitles defendant to summary judgment as a matter of law. Both motions shall be considered together.

Under Georgia law a landlord has a statutory duty to keep the premises in repair. O.C.G.A. § 44-7-13. Further, “the landlord is responsible for damages arising from defective construction or for damages arising from the failure to keep the premises in repair.” O.C.G.A. § 44-7-14 (emphasis added). This duty to keep the premises in repair and legal liability for failure to discharge that duty is imposed by statute and cannot be in any way avoided or *63 modified by the landlord or the tenant. O.C.G.A. § 44-7-2(b) provides that:

In any contract, lease, license agreement, or similar agreement, oral or written, for the use or rental of real property as a dwelling place, a landlord or a tenant may not waive, assign, transfer, or otherwise avoid any of the rights, duties, or remedies contained in the following provisions of law:
(1) Code Section 44-7-13, relating to the duties of a landlord as to repairs and improvements;
(2) Code Section 44-7-14, relating to the liability of a landlord for failure to repair;

Thus, the Georgia legislature has established in clear terms that a landlord may not in any way exculpate himself from liability for his failure to maintain the premises in good repair. Contractual provisions in a lease agreement which attempt to do this are void as against the public policy of the State of Georgia as expressed by the legislature and by the Georgia courts. See Country Club Apartments vs. Scott, 246 Ga. 443, 444, 271 S.E.2d 841 (1980).

Defendant argues that “the provisions of the leases at issue here do not seek to exculpate the defendant as to its actions.” Rather, defendant argues that paragraph 15 of the lease imposes a clearly stated condition or term of the lease, i.e., that the tenants “shall be responsible for obtaining fire, extended coverage and liability insurance with respect to apartment and contents.” Defendant then argues that “the indemnification provisions contained in paragraph 17 of the lease then re-enforce (sic) that the landlord will be released from liability and indemnified for a tenant’s failure to abide by such a condition.” Thus, defendant states that “this case involves indemnity as to the tenant’s failure to obtain insurance pursuant to contractual obligation rather than an attempt to obtain indemnity for its own negligence.” However, while the court is impressed by the ingenuity of defendant’s argument, it is unpersuaded as to its soundness.

Defendant relies upon two recent Georgia cases. George R. Lane and Associates vs. Thomasson, 156 Ga.App. 313, 274 S.E.2d 708 (1980) was a wrongful death action brought by the mother of a deceased minor child who drowned in a swimming pool of the apartment complex owned and managed by the appellants. The case involved the comparative negligence of the child’s father, for allowing the child to wander into the pool area unsupervised, and the apartment complex, for failure to repair a lock on the gate to the pool area. The child’s presence in the pool area before the pool’s hours of operation and without the supervision of his father was a clear violation of the apartment’s rules and regulations which were conspicuously posted and which were incorporated into the lease agreement. The lease agreement also contained an indemnification provision similar to that in the present case. The court of appeals held that under the terms of the indemnification clause, the child’s presence in the pool area in violation of the rules and regulations of the apartment complex barred recovery against the complex.

Defendant argues that Thomasson is controlling in this case. However, the court in Thomasson

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588 F. Supp. 61, 1984 U.S. Dist. LEXIS 15519, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schuster-v-plaza-pacific-equities-inc-gand-1984.