Celebrations go with Third Party liabilities

I had my book presentation on May 5, 2019. While we were preparing the outer space for the red carpet and welcome cocktail, I told the hall decorators to remove the rug from a section of the floor. They did not have gum to stick the edges of the rug to the floor and I was worried that the feet of guests could get stuck on the rug which could lead them to trip or/and suffer injuries. At that stage, it hit me that I was so busy with other aspects of the preparations that I forgot to take out an insurance policy to take care of possible third party liabilities?

Then I remembered that even though I had planned to, I did not ultimately find out from the owners of the hall if they had an Occupiers Liability Insurance to take care of third party liabilities for bodily injuries and death of third parties, and third party property damage. Occupiers Liability Insurance is one of the six compulsory insurances in Nigeria; and as a public building, the owners of the property are legally bound to have it. Occupiers Liability Insurance deals with third party liabilities arising from ownership and occupation of public buildings. Occupiers Liability Insurance in Nigeria protects the owner or occupier of the building against third party legal liabilities for bodily injuries, death and loss/damage of property as a result of fire, collapse, storm, earthquake, storm, flood or any allied peril in line with the Occupiers Liability Act and Insurance Act of 20013: 65.-(1). Every public building shall be insured with a registered insurer against the hazards of collapse, fire, earthquake, storm and flood.”

Then it struck me that even if the owner of the property had an occupiers liability insurance, I will only be covered by the policy if the terms and conditions of the policy, or the terms and conditions of renting the venue, specifically include people/entities who rent the property. Then I remembered that beyond the receipt for the payment for the use of the venue, I had no other document or agreement. So I was basically on my own, more so when Occupiers Liability Insurance can either be effected by the owner or occupier of the building. Moreover, the wording s of many occupiers Liability insurance in Nigeria only covers losses resulting from fire and allied perils {Occupiers Liability Act and Insurance Act of 20013: 65.-(1)}. So even a guest tripped on the staircase and got injured with such policy wordings, Occupiers Liability Insurance will not be operative.

So what is actually needed in such cases is either a public Liability Policy (in addition to the Occupiers Liability Policy) or Occupiers Liability Insurance covering other perils that could lead to third party liabilities. In this case, the policy will protect a celebrant against liabilities guests tripping at events and breaking limps or dislocating hips, liabilities arising from food poisoning and guests being rushed to the hospital.

Every day, especially on weekends, Nigerians throw lavish parties where millions of naira are spent on renting of the venue, decorations, food, drinks and other sundry expenses, but the celebrants never remember to spend a fraction of the expenses to put an insurance in place to take care of legal liabilities to third parties for bodily injuries, death and property damage.

Many people feel that liability lawsuits, while common place in the United States and Europe, are farfetched here. That may be true, but people are increasingly becoming aware of their rights. When you invite people to a ceremony, you owe them a duty of care and you could be sued for breach of this duty or for negligence. The chairman of the Lagos Area Committee of the Nigerian Council of Registered Insurance Brokers, Mrs. Bukola Ifemade, drew my attention to a classic case of what we are dealing with here and I owe our readers a duty of care to bring the case to their attention so that all may learn some valuable lessons

In the case, the claimant attended a Christian programme at the National Stadium, Surulere, Lagos, organized by the defendants in 2010. The general invitation to attend the programme, a night vigil, was issued by the defendants through their monthly devotional book which is widely sold in Nigeria and abroad. The hall was full by the time the claimant arrived. In the course of searching for a seat outside the hall, “the claimant fell headlong into an uncovered concrete gutter, sustaining serious injuries that required numerous medical procedures, treatments, dental implants and therapy.” The claimant’s lawyers demanded compensation from the defendants, but they were adamant.

The claimant then sought legal redress. “The major issue of contention in the case before the Honourable Candide-Johnson was whether the defendants owed the claimant a duty of care when she attended the night vigil and, if so, whether there was negligence on the part of the defendants that led to the claimant getting injured. Some of the points raised by the claimant’s lawyers as the basis upon which they sought judgment in their favour were:

1. The defendants were occupiers of the premises where the claimant sustained the injuries.

2. The claimant was an invitee/visitor to the premises where she was injured.

3. The defendants, who, as occupiers, owed the claimant the duty of care to keep her safe while within the premises, breached this duty and caused her damages.

4. The defendants failed the “Reasonable Man Test” used in determining breach of duty of care.

5. The claimant suffered severe injuries as a result of the defendants’ negligent conduct thus entitling her to damages.

The defendants argued that the invitation to the function ‘was an invitation to the whole world’ and not specifically to the claimant as to convey a duty of care owed to the claimant by the defendants. The court dismissed this argument as not being the position of the Law of Tort and the Doctrine of Duty of Care.”

The defendants further argued that such duty of care rests squarely on the owners of the property, but the judge dismissed the argument because “it was the defendants who structured, arranged and independently organized their event to their own tastes and standards” (SOURCE: NAIJA LEGALTALK).

So, next time you want to rent a venue for an event, go beyond obtaining a receipt. A receipt is just an acknowledgement of the money you gave to the owners for the use of the venue. Insist on an agreement or a letter stating the terms for use of the venue. Go through the document thoroughly and, if necessary, involve your lawyer. Ask if they have an Occupiers Liability Insurance because it is statutory. Also ask if they have a Public Liability Insurance policy. If they do, ask for copies to see if the insurance covers individuals and entities who rent the place. If the insurances do not, effect an insurance to cover your event. You can get a policy just to cover a one-day event.