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Defense Digest

New Jersey Appellate Division Rejects Contention that Ongoing Storm Rule Does Not Apply to Privately Owned Commercial Property

Defense Digest, Vol. 29, No. 3, September 2023

September 1, 2023

by Kevin M. McGoldrick

Key Points:

  • The Appellate Division rejects contention that the “ongoing storm rule” does not apply to privately owned commercial property.
  • Appellate court confirms that the holding in Pareja v. Princeton International Properties was not that the ongoing storm rule should apply only to public property.
  • Appellate Division affirmed that commercial property owners, whether privately owned or publicly owned, “do not have a duty to remove the accumulation of snow and ice until the conclusion of the storm.” 
  • In adopting this rule, the court relieved commercial landowners of the duty to continuously clear snow and ice from their properties throughout the duration of an inclement winter weather event. 

In Smith v. Costco Wholesale, 2023 WL4307729 (N.J. Super. App. Div. July 3, 2023), the New Jersey Appellate Division upheld the ruling of the trial court that had granted summary judgment to the defendant, Costco, holding that the plaintiff could not establish the defendants owed her a duty of care under the ongoing storm rule adopted by the Supreme Court in Pareja v. Princeton International Properties, 252 A.3d 184 (N.J. 2021). The court held the plaintiff’s argument that the ongoing storm rule does not apply to privately owned commercial property lacked merit and that no exception to the ongoing storm rule applied.

On March 7, 2018, Smith slipped and fell on snow and ice on the sidewalk in front of a Costco in North Plainfield, New Jersey, while exiting the store. On the day of the incident, the Governor of New Jersey had declared a state of emergency for all of the state due to inclement weather from a major snowstorm. Between 1:30 a.m. and 12:00 p.m., approximately one-half inch of snow fell. After 12:00 p.m., as the temperature settled at freezing, snowfall became heavy, accumulating at a rate of one-to-two inches per hour. By 5:30 p.m., the rate of precipitation started to lessen, ceasing entirely at approximately 8:30 p.m. A total of approximately eight inches of snow accumulated throughout the duration of the storm. 

During the storm, Smith drove to Costco, parked, and went inside to shop. The storefront was not far from where she parked her vehicle. Her receipt demonstrated she left the store at 2:13 p.m. Carrying only her purse, Smith left the store to get her car, intending to drive it back to the entranceway in order to load the items she bought into her vehicle. She stated she was told by one of the store employees to leave her cart in the exitway of the store. As Smith walked to her vehicle, and before she entered the parking lot, she slipped backwards and fell in the area between the entrance doors and the red bollards, injuring herself. Smith stated there were several inches of snow on the ground when she fell. 

Before the trial court, Smith argued that Pareja only applies to public property. The per curiam Appellate Division opinion, issued by Judges Richard J. Geiger and Maritza Berdote Byrne, agreed with Judge Lynott that the question of whether a sidewalk is public or private is immaterial to the Supreme Court’s holding in Pareja

The Appellate Division stated, “[t]he New Jersey Supreme Court adopted the ongoing storm doctrine in Pareja, holding that ‘commercial landowners do not have a duty to remove the accumulation of snow and ice until the conclusion of the storm.’” In adopting this rule, the court relieved commercial landowners of the duty to continuously clear snow and ice from their properties throughout the duration of an inclement winter weather event. 

The court opined that “[p]laintiff seems to derive the support for her argument from a single sentence in Pareja: ‘For the first time, this court considers the adoption of the ongoing storm rule, under which a landowner does not have a duty to remove snow or ice from public walkways until a reasonable time after the cessation of precipitation.’” “It is axiomatic ‘public walkways’ are not synonymous with public property.” Later in the Pareja opinion, the court held that “under the ongoing storm rule, commercial landowners do not have a duty to remove the accumulation of snow and ice until the conclusion of the storm.” “The first statement is merely a recitation of the issue,” the court held. “There is no indication anywhere in the opinion that the court intended to apply the ongoing storm rule only to public property, nor does logic or case law support such a conclusion.”

The trial court also found no exception to Pareja was applicable, ruling that no evidence existed to prove that the defendants “exacerbated the risk of harm to the plaintiff,” other than the risk presented by the snowstorm itself, or that “a pre -existing condition, such as uncleared remnants of prior snow events, caused or contributed in any way to the [p]laintiff’s accident.”

The Appellate Court noted that it was undisputed by the parties that Smith’s slip and fall occurred during the snowstorm. In fact, the storm did not end until many hours after she fell. Thus, the ongoing storm rule applied, relieving the defendants of any duty of care they may have owed the plaintiff. Smith argued the ongoing storm rule did not apply because her injury occurred on private property owned by the Costco defendants. In Smith’s view, Pareja was meant to apply only to incidents occurring on public property, not private property. The appellate court found this argument without merit, holding that, “[b]ased upon a plain reading of Pareja, there is no indication the Supreme Court’s ruling was limited in this manner.”

Smith’s attorney has said that he intends to file for certification with the New Jersey Supreme Court. For now, the law for commercial property owners, whether privately owned or publicly owned, is that “commercial landowners do not have a duty to remove the accumulation of snow and ice until the conclusion of the storm.” In adopting this rule, the court relieved commercial landowners of the duty to continuously clear snow and ice from their properties throughout the duration of an inclement winter weather event. If the Supreme Court grants the plaintiff’s request for certification, then there is a possibility the court may adopt a new standard. Until then, commercial landowners can and will continue to rely upon the “ongoing storm doctrine” as a safe haven to protect them from liability exposure during an inclement weather event. 

*Kevin is a shareholder in our Mount Laurel, New Jersey, office. He can be reached at 856.414.6406 or kmmcgoldrick@mdwcg.com.

 

 

Defense Digest, Vol. 29, No. 3, September 2023, is prepared by Marshall Dennehey to provide information on recent legal developments of interest to our readers. This publication is not intended to provide legal advice for a specific situation or to create an attorney-client relationship. ATTORNEY ADVERTISING pursuant to New York RPC 7.1. © 2023 Marshall Dennehey. All Rights Reserved. This article may not be reprinted without the express written permission of our firm. For reprints, contact tamontemuro@mdwcg.com.

Firm Highlights

Thought Leadership

Featured Conversations... Key Takeaways from A.M. Best’s Webinar on the Misuse Defense in Product Liability Claims, Featuring Michael Salvati

Michael Salvati, shareholder in our Philadelphia office, was a panelist for the April A.M. Best webinar, “The Misuse Defense: Strategic Approaches to Defending Product Liability Claims for Insurers.” During the program, Michael and his fellow panelists offered practical, jurisdiction‑specific guidance on how misuse and failure‑to‑warn theories intersect in modern product liability litigation. Michael emphasized the unique challenges these claims present—particularly in states like Pennsylvania, where evidentiary rules diverge sharply from those applied in many other jurisdictions. Failure to Warn as the “Flip Side” of Misuse Salvati explained that failure‑to‑warn allegations often arise as a direct counter to a misuse defense. As he noted, “If our misuse defense is that the plaintiff didn't use a product properly or safely, then the failure to warn claim is that we didn't tell them how to use it properly.” He emphasized that these claims can stem from either the absence of warnings or criticisms of existing warnings, such as insufficient specificity or lack of clarity about risks. Pennsylvania’s Unique Evidentiary Landscape One of Salvati’s most notable points was the stark difference in how Pennsylvania treats evidence of compliance with industry standards. He highlighted that Pennsylvania is “one of the only states…where that evidence is not admissible” in strict liability cases. Manufacturers cannot rely on compliance with ANSI, UL, ISO, or even federal safety standards to defend the product against a strict liability claim—because the focus is solely on the product itself, not the manufacturer’s conduct. Salvati acknowledged the challenge this creates for defense counsel and clients who expect such compliance to carry weight. Understanding the Three Defect Theories Salvati also walked through the three primary defect theories recognized in many jurisdictions: - Design defect – a flaw in the product’s intended design - Manufacturing defect – a deviation affecting a specific unit - Failure to warn – inadequate instructions or warnings He noted that warnings claims are increasingly significant and sometimes stand alone when design or manufacturing theories are weak. As he put it, plaintiffs often default to warnings claims because “the default position seems to be, ‘If I got hurt, there must be something wrong.’” Warranties and State‑by‑State Variations Salvati addressed how breach‑of‑warranty claims fit into the broader framework, explaining that implied warranties—such as merchantability—often overlap with strict liability in Pennsylvania. He emphasized the importance of understanding local nuances, as warranty law and admissibility rules vary widely across states. Looking Ahead: The Growing Importance of Warnings In his closing remarks, Salvati stressed that warnings should never be treated as an afterthought in product liability defense. He observed that warnings‑only claims are becoming more common and urged manufacturers and insurers to continually evaluate the clarity and completeness of their instructions and warnings. His takeaway: “We should always be talking about what are the instructions that come with our products…to bolster a misuse defense.” Listen to the complete webinar here: https://www3.ambest.com/conferences/events/eventregister.aspx?event_id=WEB1074.

Thought Leadership

The Enforceability of Online Arbitration Agreements Remains Unresolved in Pennsylvania, But the Pennsylvania Superior Court has Provided Substantive Guidance on the Issue

Key Points: The Pennsylvania Supreme Court confirms that an order compelling arbitration is not immediately appealable as collateral orders. The outcome of Chilutti II has generally left the substantive enforceability issues with browsewrap agreements unresolved in Pennsylvania. Until this issue is resolved by the Pennsylvania courts, companies operating in the Commonwealth should strive to ensure that their registration websites and/or application screens conspicuously present arbitration agreements in manners which ensure their users and consumers assent to the terms of the agreements by following the standards set forth in Chilutti I. Browsewrap agreements have been defined as agreements “‘in which a website offers terms that are disclosed only through a hyperlink and the user supposedly manifests assent to those terms simply by continuing to use the website,’ and typically do not require an electronic signature.” See, Cobb v. Tesla, Inc., 2026 WL 458470, at *1 n. 2 (Pa. Super. Feb. 18, 2026) (citation omitted). They are largely regarded as the “if you keep using this, you agree to everything buried in this link” terms embedded into almost every online agreement consumers and users sign before proceeding with purchases of goods and/or services. While consumers are generally aware of them, many almost never click on the link, nor read them in their entirety. This leaves many consumers and users ignorant of the terms and impact of such agreements. However, one’s ignorance of the otherwise neatly-tucked-away terms rarely renders them unenforceable. The issue of the enforceability of browsewrap agreements has been up for debate for some time in many jurisdictions, including Pennsylvania. Indeed, Pennsylvania had a brief grip on this issue for a period in time. Specifically, in 2023, an en banc Superior Court set forth heightened standards for companies to meet in order to secure assent and enforce browsewrap arbitration agreements. See Chilutti v. Uber Techs., Inc., 300 A.3d 430 (Pa.Super. 2023) (en banc) (“Chilutti I”) Chilutti I involved a husband and wife who sued Uber and its subsidiaries after the wife, a wheelchair bound passenger using Uber’s rideshare service, fell, struck her head, and lost consciousness due to her uber driver failing to provide a seatbelt and making an aggressive turn during the trip. The Chilutti’s filed a negligence lawsuit against Uber and its subsidiaries. In response, the defendants moved to compel arbitration, arguing that “the couple’s conduct on the company’s website and application — when they registered for the ridesharing service — signified that they agreed to be bound by the mandatory arbitration provision found in the hyperlinked terms and conditions.” The trial court granted the defendants’ petition and stayed the proceedings pending the results of arbitration, and the Chilutti’s appealed. On appeal, the Superior Court addressed two issues. First, it addressed the issue of whether it had jurisdiction to hear the appeal. A divided Superior Court determined that it did, with its basis for the holding being that the order from which the Chilutti’s appealed was a collateral order. Next, the Superior Court set out to address the merits of the Chilutti’s substantive claim. The Superior Court concluded that the parties lacked a valid agreement to arbitrate. Its rationale was that Uber’s website and application did not provide reasonably conspicuous notice of the terms to the Chiluttis. In reaching this decision, the en banc Superior Court held that browsewrap arbitration agreements are enforceable in Pennsylvania only if the registration website and application screens explicitly inform consumers that they are waiving the right to a jury trial, the registration process cannot be completed until the consumer is fully informed of this waiver, and, when the agreement is available via hyperlink, the waiver appears at the top of the first page of the terms in bold, capitalized text. Since the ruling, Pennsylvania courts have applied Chilutti I to determine if browsewrap agreements are enforceable.  For instance, the Allegheny County Court of Common Pleas invoked Chilutti I to reject an agreement that lacked an express jury-trial waiver on the assent screen.  See Miller v. Festival Fun Parks, LLC, 92 WDA 2025 (C.P. Alleg. Cnty. Mar. 24, 2025). Similarly, the Superior Court has held that notice which failed to explicitly state the consumer was waiving a jury-trial right did not “me[e]t the strict burden set forth by our en banc Court in Chilutti I.” Pierce v. FloatMe Corp., 348 A.3d 1077, 1088 (Pa. Super. 2025). While the issue of enforceability of browsewrap agreements appeared to have been resolved by Chilutti I, Pennsylvania courts’ grip on this issue has been slackened by the Pennsylvania Supreme Court’s January 21, 2026, opinion in Chilutti II. See Chilutti v. Uber Techs., Inc., 349 A.3d 826 (Pa. 2026) (“Chilutti II”). Therein, the Supreme Court did not address the merits of the Chiluttis’ substantive claim, but rather the issue of whether the Superior Court had appellate jurisdiction to immediately review the orders staying litigation pending arbitration. The Court ultimately vacated the en banc opinion on jurisdictional grounds, holding that the Superior Court did not have appellate jurisdiction because the trial court’s order from which the Chiluttis appealed did not qualify as a collateral order and, thus, the Superior Court erred in holding to the contrary and lacked jurisdiction to entertain the merits” of the Chiluttis’ substantive claim. As such, Chilutti II has rendered Chilutti I nonbinding, and the issue of enforceability of online arbitration agreements remains unresolved. However, in light of the fact the Supreme Court did not address or comment on the merits of the Chiluttis’ appeal, Chilutti I is still meaningful. Specifically, it provides guidance as to the standards a company should strive to meet to ensure they have obtained users’ assent so that they are able to enforce online arbitration agreements. Additionally, it may serve as persuasive authority in judges’ evaluations of petitions and/or motions to compel browsewrap arbitration agreements until this particular issue is properly put before our appellate courts. Keanna works in our Pittsburgh, PA office. She can be reached at (412) 803-1174 or KASeabrooks@MDWCG.com.

Result

No-Cause Jury Verdict Secured in Wrongful Death Trial

We successfully obtained a no-cause jury verdict in a 13-day wrongful death trial. The decedent, a 59-year-old man, was admitted to the emergency room on February 15, 2019, with complaints of abdominal pain, decreased appetite, and constipation, despite the use of laxatives. The patient did not complain of any nausea, vomiting, or diarrhea. He had a significant medical history including diabetes, hypertension, prior coronary artery stenting, morbid obesity (with past gastric bypass surgery), longstanding ventral hernia, and back pain. A CT scan revealed multiple hernias and a potential closed-loop bowel obstruction, leading to a surgery consultation. Our client, an emergency general surgeon, interpreted that the patient did not have a closed loop or any significant obstruction and recommended non-surgical management. The patient was approved to have clear liquids, and had a vomiting incident shortly after, but our client was not notified. The patient was returned to NPO status, and after improving overnight, he was returned to “clears” and additional medical and renal consults were ordered. Our client did not receive any communications from the residents/nurses of any changes in the patient’s condition. On February 18, 2019, two rapid responses were called due to increased heart rate and vomiting. It is believed that the vomiting resulted in aspiration, causing sepsis, ultimately leading to the patient’s death. During the trial, the plaintiff’s sole medical expert highlighted imaging on the wrong hernia, which called into question all of his opinions in the case. We made key objections related to the expert testimony, limiting what the allegations were, and preventing new allegations from being made. After approximately two and a half hours of deliberating, the jury returned a no-cause verdict.