Warranty of Habitability

Johnson v Scandia Associates, Inc, 717 NE2d 24 (Ind 1999).

Facts: Tenant (Johnson) sued landlord of apartment complex (Scandia Associates, Inc.) after being injured by an electric shock in her apartment. Johnson received the shock when she touched two kitchen appliances simultaneously, and asserted liability on grounds of both tort and contract. The trial court dismissed the contract warranty claim. After a verdict for Scandia on the negligence claim, Johnson appealed the dismissal of the warranty claim. The court of appeals reversed and remanded, holding that the implied warranty of habitability in a residential lease extends to claims for personal injuries caused by a concealed dangerous condition, but only if the plaintiff tenant is in privity of contract with a professional landlord and the landlord had not acted reasonably under the circumstances. The Indiana Supreme Court then took the case on petition to transfer. Johnson argued that a warranty of habitability was implied in her residential lease, and that the court should sanction "a logical extension of the law" to allow for personal injury claims based on the warranty. Scandia responded that Johnson's claim was only in tort.

Holding: Holding of trial court affirmed. If there is no express warranty in a lease, then the claimant must identify facts that show that a warranty of habitability was implied. Johnson failed to plead any facts showing that Scandia extended an implied warranty as part of the lease agreement. Therefore, she failed to state a valid claim that a warranty of habitability was breached. Moreover, even where an implied warranty of habitability does exist, consequential damages for personal injury may not be awarded, because the parties did not contemplate personal injury when making the agreement.

ILLINOIS ANALYSIS: The result would probably be the same in Illinois. Illinois courts have held that the implied warranty of habitability cannot be used in personal injury actions. See, e.g., Beese v National Bank of Albany Park, 82 Ill App 3d 932, 403 NE2d 595 (1st D 1980).

© ATG atgc0500vol24

 

Print this page