The Risks for Retail Establishments and How to Avoid Them

Retail establishments operate in a high-exposure environment, with hundreds or even thousands of customers passing through each day. When an accident occurs, retailers are often the first defendants named in lawsuits. In the personal injury context, most claims against retailers are based on premises liability, although some may also be based on products liability or on negligent hiring. Retailers should be aware of all types of claims so they can minimize the risk of a lawsuit or, even better, prevent one. If you’re a retailer facing a personal injury lawsuit for any reason, a North Carolina personal injury defense attorney can help you safeguard your interests. 

Premises Liability Claims Against Retailers  

Premises liability claims are among the most common personal injury claims against retailers. Typically, they arise when a customer suffers an accident on the retailer's premises, whether a slip-and-fall, an accident involving merchandise, or the criminal conduct of third parties. Under North Carolina premises liability law, all property owners must exercise a reasonable duty of care to protect all lawful visitors from injury. Generally, that duty includes the duties to not expose lawful visitors to dangerous conditions and to warn them of hidden dangers of which the property owner is aware or reasonably should be aware. It does not mean that property owners are insurers of their premises, nor that they must bear unwarranted burdens in maintaining them.

Slip and Fall 

Slip-and-fall cases are particularly common and vexatious in the retail industry, as plaintiffs often attempt to show that the water or other hazard on the floor resulted from negligent maintenance. Typical allegations include: 

• Liquid spills in aisles 
• Rainwater tracked into entranceways 
• Recently mopped floors
• Loose or curled carpeting
• Uneven flooring
• Icy parking lots

A key defense in slip-and-fall cases is notice, as property owners are liable only for hazards they are aware of or reasonably should have been aware of. As such, an effective defense is to establish that the employer had no notice of the hazard nor could have been made aware of it prior to the accident. Inspection logs, cleaning schedules, and surveillance footage can be helpful in establishing lack of notice. 

Falling Merchandise

Customer injuries don’t always come from below; in some cases, they come from above. Falling merchandise and unsafe display claims revolve around allegations that retailers failed to exercise care in the organization and display of their goods. These claims can arise due to: 

• Overstocked shelves
• Heavy items staked too high
• Unsecured end-caps
• Precariously assembled promotional displays

Because plaintiffs often claim lack of care in falling merchandise claims, effective defenses include showing compliance with industry standards, adherence to internal safety policies, and diligence in employee training. For more information about how to avoid or defend falling merchandise claims, speak to a North Carolina personal injury defense attorney. 

Negligent Security 

Generally, property owners (including retailers) are not liable for the criminal acts of third parties. However, there is a major exception when the risk of criminal activity is foreseeable, such as when there has been criminal activity on the premises in the past. In such cases, plaintiffs often argue that a lack of reasonable security by the retailer — such as poor lighting, unsecured entrances, or malfunctioning or nonexistent security systems — led to the criminal action that caused their injury. To prevent such claims, retailers should keep their premises secure, well-lit, and under surveillance, and train employees in proper security practices. 

Products Liability Claims Against Retailers 

Manufacturers, distributors, and retailers may all be named as defendants in products liability lawsuits, which generally involve allegations that a product suffered from either a design defect or a manufacturing defect or that the seller failed to warn of non-obvious dangers. However, North Carolina's products liability law protects retailers from many products liability claims by limiting liability for sellers who did not manufacture the product in question. 

Retailers generally are not liable for injuries caused by defective products unless: 

1. The retailer exercised substantial control over the design or manufacture of the product
2. The retailer damaged or mishandled the product
3. The retailer had knowledge of the product defect 

Even with such protections, however, many retailers — such as those that manufacture part or all of their own products — may still be targets of products liability claims. Such retailers should work with a North Carolina personal injury defense attorney to limit their exposure to such lawsuits. 

Negligent Hiring, Retention, or Supervision 

In addition to premises and products liability claims, North Carolina retailers may face personnel-related claims. These suits typically revolve around allegations that a retailer knew or should have known that a particular employee was unfit for their position at the time of hire, or that the retailer became aware of an employee’s unfitness and failed to take corrective action. While employers generally are not liable for the intentional torts of their employees, an exception may arise where an employer knew or should have known that an employee had a propensity to commit violent acts and failed to protect customers. The most effective strategies for retailers to avoid such claims are to implement a rigorous screening process for employees and require (and document) periodic employee training. In litigation, retailers may argue that they could not reasonably have anticipated the employee’s conduct because they had no notice of the specific risk. 

Minimize Your Exposure With Help From a North Carolina Personal Injury Defense Attorney 

Retailers are frequent targets of a wide range of personal injury lawsuits, some of which are more legitimate than others. The best strategy for minimizing the risk of a personal injury lawsuit is to work with an attorney who has experience defending retail establishments in such actions. For more information, please contact a North Carolina personal injury defense attorney at Harris, Creech, Ward & Blackerby. Call 252-638-6666 or use our online contact form.