SUSAN OKI MOLLWAY, Chief District Judge.
This is a personal injury action. While staying with six others at a vacation rental in Kona, Hawaii, Plaintiffs Terry Johns and Ginny Smith fell six feet onto lava rocks when a fence they were allegedly leaning on broke. Plaintiffs filed this action against the owner of the home, Shelia L. Wright-Scott. Wright-Scott then filed a third-party complaint against the renter who signed the vacation rental agreement, Hali Strandlund, seeking indemnity and contribution, and asserting a breach of contract claim. Strandlund now seeks summary judgment as to all causes of action in the Third-Party Complaint. The court denies the motion.
Plaintiffs and Strandlund were among a group of eight individuals from Canada who rented a vacation home in Kona, Hawaii. Separate and Concise Statement of Facts in Supp. of Third-Party Def. Hali Strandlund's Mot. for Summ. J. ("Strandlund Facts") No. 1, ECF No. 23. Strandlund found the home on a website that advertises vacation rentals and signed a lease agreement on September 22, 2010.
On the evening of February 8, 2011, after consuming alcohol at the home, Plaintiffs went outside and allegedly leaned against a fence.
Plaintiffs filed this action against Wright-Scott seeking recovery for their injuries. Wright-Scott then filed a third-party complaint against Strandlund. Wright-Scott seeks indemnity and contribution to the extent she is found liable for Plaintiffs' injuries and also asserts a breach of contract claim. Strandlund now seeks summary judgment on all claims in the Third-Party Complaint.
Summary judgment shall be granted when "the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed. R. Civ. P. 56(a). A moving party has both the initial burden of production and the ultimate burden of persuasion on a motion for summary judgment.
The burden initially falls on the moving party to identify for the court "the portions of the materials on file that it believes demonstrate the absence of any genuine issue of material fact."
When the moving party meets its initial burden on a summary judgment motion, "[t]he burden then shifts to the nonmoving party to establish, beyond the pleadings, that there is a genuine issue for trial."
The first cause of action in the Third-Party Complaint states that Strandlund owes Wright-Scott a duty to defend and indemnify her from Plaintiffs' claims. Third-Party Compl. ("TPC") ¶ 13, ECF No. 1-2. Strandlund seeks summary judgment on the ground that the "indemnity provision" in her lease agreement is void. Paragraph seven of the lease agreement, the purported indemnity provision, states: "Owner of said premises is not responsible for injury to rentors, their family or guests, or to damage to their personal property incurred during their stay. Renters, their family and guests, bear the risk of any injury." Decl. of Valerie E. Clemen Ex. F ¶ 6, ECF No. 23-7.
The court first notes that paragraph seven is not an indemnity provision. Generally, "[a]n agreement to indemnify another is an agreement by one person to safeguard or hold another harmless from loss or damage as may be specified in the agreement, or in which the indemnitor promises to reimburse his or her indemnitee for loss suffered." 42 C.J.S. § 1 (West, Westlaw through 2012). "An indemnity provision generally . . . obligates the indemnitor to protect the indemnitee against claims brought by third parties."
The court agrees with Strandlund that paragraph seven is void to the extent it purports to absolve Wright-Scott of any liability for causing, through her actions or omissions, an injury on her property. Hawaii law prohibits a landlord from waiving liability for damages caused by the landlord. Section 521-33 of Hawaii Revised Statutes states:
Paragraph seven falls within the scope of section 521-33, and, as conceded by Wright-Scott at the hearing on this motion, it is unenforceable to the extent it waives Wright-Scott's liability for injuries she caused. Wright-Scott cannot rely on paragraph seven to absolve herself of all liability for Plaintiffs' injuries. It remains to be seen whether any action or omission by Wright-Scott caused any injury, a matter this court does not address here.
Even if paragraph seven is void, Strandlund fails to show that Wright-Scott has no possible basis for seeking indemnification from Strandlund, as that duty might arise from a source other than the lease agreement. Wright-Scott asserts that "Strandlund owes express and implied duties to defend and indemnify Wright-Scott from Plaintiffs' claims brought in this action." TPC ¶ 13. Although Strandlund does not identify the source of those express and implied duties, on a summary judgment motion, the burden is on the moving party to show that it is entitled to judgment as a matter of law. Strandlund does not meet that burden. For example, Strandlund fails to show that she does not have a duty to indemnify Wright-Scott that is implied in law.
Wright-Scott's second cause of action seeks contribution and asserts that, if Wright-Scott is found liable for Plaintiffs' injuries, Wright-Scott is entitled to contribution from Strandlund. TPC ¶ 17. It also states that Wright-Scott did not cause Plaintiffs' injuries.
Although Strandlund's motion states that she seeks summary judgment on all claims asserted in the Third-Party Complaint, she conceded at the hearing that her motion fails to address Wright-Scott's contribution claim. The court thus denies summary judgment on Wright-Scott's contribution claim, although the court notes that, as stated above, because paragraph seven is unenforceable, Wright-Scott cannot, without more, rely on that paragraph to absolve herself of all liability for Plaintiffs' injuries.
Wright-Scott's third cause of action asserts that Strandlund "materially breached" her contractual obligations under the lease agreement. TPC ¶ 21. Although the cause of action itself does not identify the provisions that Strandlund allegedly breached, elsewhere the Third-Party Complaint states that Strandlund threw a "house party" at the property the night Plaintiffs were injured, "in material breach" of the lease agreement, and "failed to report problems with the premises."
The lease agreement states: "Absolutely no pets, fireworks, or house parties allowed." Strandlund argues that she is entitled to summary judgment on the ground that she did not throw a "house party." She argues that whether a "house party" actually occurred is a question of law. The court disagrees.
"Where the terms of a contract are ambiguous, the ambiguity raises the question of the parties' intent, which is a question of fact that will often render summary judgment inappropriate."
Strandlund maintains that she cannot be said to have been throwing a party because there were no guests present (only the eight renters), and because the lease agreement permits a maximum occupancy of ten people. Her position appears to be that a party requires outside guests in excess of the maximum capacity permitted. Wright-Scott, on the other hand, maintains that a house party can occur among several people who are temporarily occupying one house. A genuine issue of material fact exists as to whether a "house party," as understood by the parties when they entered into the lease agreement, actually occurred.
Strandlund also fails to address Wright-Scott's allegation that Strandlund breached the lease agreement by failing to report problems with the premises. Summary judgment is not warranted with respect to Wright-Scott's breach of contract claim.
Strandlund's summary judgment motion is DENIED.
IT IS SO ORDERED.