Who Can Be Held Liable?
The Occupiers’ Liability Act (the Act) imposes a duty of care on those responsible for premises. Liability may extend to:
A. Condominium Corporations as Occupiers of Common Areas
A condominium corporation may be considered an occupier under the Act if it has control over the condominium’s common property, including hallways, parking areas, elevators, and amenities. The corporation is responsible for ensuring these areas are reasonably safe for residents, guests, and service providers.
B. Condominium Managers Acting on Behalf of the Corporation
A licensed condominium manager may also share liability if they are responsible for overseeing the maintenance and safety of the property. Under the Occupiers’ Liability Act:
An occupier of premises owes a duty to take such care as in all the circumstances of the case is reasonable to see that a person and that person’s property on the premises will be reasonably safe in using the premises.
If a condominium manager fails to implement or enforce safety measures, they could be held partially liable for resulting damages or injuries.
C. Contractors or Third-Party Service Providers
If a condominium corporation hires an external company for maintenance, security, or repairs, liability may be shared between the corporation, manager, and the contractor. However, liability depends on contractual agreements and indemnification clauses, which determine who is responsible in case of negligence.
Liability Scenarios in Condominium Management
The Occupiers’ Liability Act applies to various real-world scenarios in condominium management.
A. Slips and Falls in Common Areas
A resident or visitor slips on an unsalted icy walkway outside the condominium building.
Liability: The condominium corporation may be liable if proper snow removal procedures were not followed. If an external contractor was responsible for snow removal, they may also share liability.
B. Security Risks and Unauthorized Access
A malfunctioning security system allows an unauthorized individual to enter the building, resulting in theft or damage.
Liability: The condominium corporation may be responsible for failing to maintain the security system. If the condominium manager oversees security contracts, they may also share liability.
C. Failure to Address Maintenance Hazards
A broken handrail in a stairwell remains unfixed despite multiple complaints, leading to a resident’s injury.
Liability: The condominium corporation and manager may be liable for not addressing a known hazard in a timely manner. If a contractor was hired but did substandard work, they may also be held accountable.
Preventative Strategies to Reduce Liability
To reduce liability risks, condominium managers and corporations should implement proactive safety measures:
A. Regular Inspections and Documentation
Conduct routine inspections of all common areas and document findings.
Address hazards immediately and track maintenance requests.
B. Clear Policies on Maintenance and Access Control
Establish written policies and procedures for property maintenance.
Implement strict access control measures, including updated security codes and restricted entry points.
C. Proper Insurance Coverage and Indemnification Clauses
Maintain liability insurance that covers common areas and management activities.
Ensure contractor agreements include indemnification clauses, clearly outlining who is responsible for damages in case of negligence.
Drafting a Risk Management Plan
Now that you understand how liability applies to condominium management, apply your knowledge by creating a basic risk management plan for a condominium property.
Instructions:
Identify Three Key Risks
Select three potential hazards (e.g., icy walkways, security breaches, poor lighting).
Outline Preventative Measures
Describe specific actions the condominium corporation and manager should take to reduce risk.
Define Responsibilities
Indicate whether the corporation, manager, or contractor is responsible for each preventative action.
This exercise will help reinforce your ability to apply risk management strategies in real-world condominium management.
