Damage Control When it comes to protecting customers, you'd better cover all your bases.

When a customer falls on the ice in your parking lot, you knowyou may be liable for his or her injuries. The same goes forsomeone hurt when precariously stacked boxes tumble over or forsomeone who breaks an ankle because no one warned him or her aboutthe slippery floor. The law expects businesses to correct any knownhazards or warn customers about them. But what if one of yourcustomers is injured in a fight with another customer? What if acrime occurs in your business's parking lot? Your potentialliability in these cases may surprise you.

Steven C. Bahls, dean of Capital University Law School inColumbus, Ohio, teaches entrepreneurship law. Freelance writer JaneEaster Bahls specializes in business and legal topics.

Out Of Bounds

Recent court cases have extended the concept of "premisesliability" in unexpected ways. Consider a recent case from theAppellate Court of Illinois. Four customers at a bar and grillbegan an argument that turned into a fight once they went outside.The bar cleared out, and several other customers joined the brawlwhile the owner and a few employees watched from inside. Eventuallyone customer was stabbed in the back, neck and chest. He sued thebar, claiming its owner and employees breached a duty to help.

The trial court dismissed the case, ruling that the businessowner owed no duty because the brawl took place in the street--offthe tavern's property. But the case was reinstated on appeal.The higher court ruled that business owners may not avoid theirduty to protect customers from criminal attack just because anattack takes place outside their door--"especially when theowner contributes to the altercation by sending patrons intoit."

This case breaks new legal ground. Traditionally, a business hashad a duty to protect the public from harm while people are on thepremises for business purposes. This includes suppliers, customers,vendors, contractors and employees (although workers'compensation covers most employee injuries whether or not theemployer was negligent). The duty of care encompasses known dangerssuch as uneven pavement, and foreseeable dangers such as a threatof attack. Traditionally, however, that duty ended at the propertyline. The Illinois case expands the duty of care beyond theproperty line if the business owner knows about the threat and doesnothing to stop it.

Criminal Intent

Another traditional duty is to warn people of known dangers,whether it's by posting a "wet floor" sign ormentioning the icy sidewalk you've been having trouble keepingclear. In another groundbreaking case, however, a warningwasn't enough. This case involved a woman who was approachedtwice in a bowling alley by a man she didn't know who demandedthat she go to bed with him. The bouncer, who'd overheard,warned her as she was leaving at 2:00 a.m. not to go outsidebecause "that goofball" was out there. Ignoring thewarning, she walked to her car, where the man was waiting. Hestabbed her repeatedly. The Supreme Court of California ruled thatthe bowling alley was liable because, knowing the potential danger,the bouncer should have walked the woman to her car.

What if there's a robbery? According to a recent casedecided by the California Supreme Court, your employees are notrequired to cooperate with the robber to protect customers. In thiscase, a robber walked into a fast-food restaurant, seized acustomer at gunpoint, and threatened to shoot her if the clerkdidn't open the register and hand over the money. The clerkstalled, saying she would have to go back and get the key. Therobber shoved the gun harder into the customer's back andscreamed at the clerk, who then complied.

The customer later sued the fast-food chain, claiming that theclerk's failure to immediately comply caused her back injuryand emotional distress. But in this case, the California SupremeCourt ruled that the business had a right to resist, even if acustomer was endangered. After all, public policy demands notencouraging compliance with crime. No state has imposed a duty onbusiness owners to cooperate with criminals.

Foreseeable Dangers

Chances are, if your business is sued over an injury, the casewill involve an accident the injured party claims could have beenforeseen. In Illinois, a man who fractured his ankle in a fall on acompany's sidewalk was awarded $124,687. He argued that thesidewalk had been negligently installed so it was too steep andthat the company had failed to remove a buildup of ice.

In New York, a 74-year-old man won $800,000 after tripping andfalling over a depression in the sidewalk at his apartment complex.The housing authority and the tenants' corporation had beenarguing over whose responsibility it was to repair the sidewalk,but neither had done so.

In Missouri, a customer was awarded $25,000 after slipping andfalling on a wet floor in a retail store. The customer argued thatthere were no warning signs. Because there was a mop bucket with a"Wet Floor" sign in the area, the plaintiff was found tobe only 40 percent negligent, so the award was cut to $15,000.

The key to avoiding trouble in this area is fairly simple:Maintain your property to reduce the chance of accidents, and warnthe public of known dangers. If an injury leads to a lawsuit, thecourt will ask whether the business owner or employees should havenoticed the danger and taken steps to correct it. Some preventiveactions to take:

• Make sure merchandise displays are safely stacked.

• Avoid tripping hazards by removing debris from the floor andsecuring carpets and mats.

• Avoid slippery floors by repairing leaky coolers and moppingtracked-in slush and mud. Have employees post "Wet Floor"signs every time they mop.

• Remove snow and ice promptly from sidewalks and parkinglots.

• Teach employees how to respond in case of a holdup.

• If a customer acts erratically or shows hostile behavior, callthe police immediately.

• If you think a customer might be in danger, provide anescort.