STATE OF ARIZONA RETAIL COMPENDIUM OF LAW Prepared by Jones, Skelton & Hochuli, PLC 40 N Central Ave, Suite 2700 Phoenix, AZ 85004 Tel: (602) 263-1700 www.jshfirm.com 2016 USLAW Retail Compendium of Law We hope that you enjoy our overview of Arizona law and its impact on retailers. We have included sections on general liability, premises liability, damages, insurance coverage, health care liens, and employment law. Importantly, we hope the materials serve as a primer for how to prevent accidents and lawsuits. If you have any questions about Arizona retail law, the below authors, and Jones Skelton & Hochuli would be happy to answer any questions you may have. 1 2 3 4 TABLE OF CONTENTS 1 General Liability ............................................................................................... 1 Comparative Negligence In Arizona ............................................................................................ 1 Fault Allocation ..................................................................................................................................... 1 Non-Parties at Fault .............................................................................................................................. 1 Willful and Wanton Conduct ................................................................................................................ 2 Indivisible Injury ................................................................................................................................... 3 Assumption of the Risk ......................................................................................................................... 3 Liability for the Acts of an Independent Contractor ............................................................................ 4 Contribution ................................................................................................................................. 5 “Common Liability” .............................................................................................................................. 6 Indemnity ..................................................................................................................................... 7 Settlement Credit ......................................................................................................................... 7 Intentional Joint Tortfeasors ................................................................................................................ 8 Dramshop Liability ....................................................................................................................... 8 Common Law ........................................................................................................................................ 8 A.R.S. § 4-311 (Licensee Liability) ......................................................................................................... 9 Other Issues ........................................................................................................................................ 10 2 Premises Liability ........................................................................................... 12 Liability of the Possessor of Land............................................................................................... 12 Invitee ........................................................................................................................................ 12 Mode of Operation Rule ..................................................................................................................... 14 Failure to Warn ................................................................................................................................... 15 Trespasser .................................................................................................................................. 15 Attractive Nuisance Doctrine ............................................................................................................. 15 Doctrines Applicable to Every Class of Entrant ......................................................................... 16 Non-Party at Fault .............................................................................................................................. 16 Res Ipsa Loquitur ................................................................................................................................ 17 Open and Obvious Defense ................................................................................................................ 17 Easement Holders ...................................................................................................................... 17 Liability for the Acts of an Independent Contractor .................................................................. 18 The Non-delegable Duty Rule .................................................................................................... 18 Doctrine of Retained Control ..................................................................................................... 19 Inherently Dangerous Activities................................................................................................. 19 Vicarious Liability for Punitive Damages ................................................................................... 19 Liability for Criminal Acts Committed by Third Parties .............................................................. 20 Propensity Towards Violence .................................................................................................... 21 Failure to Maintain Adequate Security ...................................................................................... 21 Innkeeper Statute ............................................................................................................................... 21 Landlord’s Liability to Tenant and Guests of Tenants ............................................................... 22 Retail Merchants May be Subject to Claims of False Arrest and False Imprisonment.............. 23 The Arizona Shopkeepers’ Privilege .......................................................................................... 24 Reasonable Cause............................................................................................................................... 25 Reasonable Manner ........................................................................................................................... 25 Reasonable Time ................................................................................................................................ 26 i TABLE OF CONTENTS Malicious Prosecution Claims .................................................................................................... 27 Defamation Claims ..................................................................................................................... 27 3 Damages ........................................................................................................ 28 Proximate Cause ........................................................................................................................ 28 Compensatory Damages ............................................................................................................ 28 Types of Compensatory Damages ............................................................................................. 30 Pain and Suffering .............................................................................................................................. 30 Medical Expenses ............................................................................................................................... 31 Lost Wages/Impairment of Earning Capacity ..................................................................................... 31 Loss Of Consortium ............................................................................................................................ 32 Loss of Spousal Consortium................................................................................................................ 32 Loss of Filial Consortium ..................................................................................................................... 33 Loss of Parental Consortium .............................................................................................................. 33 Hedonic Damages ............................................................................................................................... 33 Diminution of Quality of Life .............................................................................................................. 34 Pre-Existing Condition, Unusually Susceptible Plaintiff ............................................................. 34 Emotional Distress Damages ..................................................................................................... 34 Punitive Damages ...................................................................................................................... 35 Amount of Damages ........................................................................................................................... 35 4 Insurance Coverage ........................................................................................ 37 Duty To Defend And Indemnify .........................................................................................................