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Steve Adelman's article "Just a Matter of Time: The Duty to Address Reasonably Foreseeable Risks" was published in the June/July 2007 issue Facility Manager, the magazine of the International Association of Assembly Managers

Information about our firm in Martindale-HubbellThis article appeared in the June/July 2007 issue of Facility Manager, a magazine of the International Association of Assembly Managers

 

Member, ALFA International: The Global Legal NetworkJust a Matter of Time: The Duty to Address Reasonably Foreseeable Risks

Steven A. Adelman

Steve Adelman is an IAAM member and a frequent presenter on risk management issues for owners and managers of sports stadiums and arenas and performing arts venues. His practice includes venue safety, transportation law, products liability litigation and commercial litigation.

Even if you have not yet suffered a significant loss at your venue, you will. As shown by September 11 and the chaos following Hurricane Katrina, there are new threats and new consequences all the time. At best, you can hope to reduce your venue's vulnerabilities and manage the risk that remains. The law imposes on every venue the duty to do just that. Put another way, it is not a question of if you get sued, but when.

Natural Laws of Risk. Anyone who thinks something bad cannot happen in their facility is gambling with their patrons' safety with the deck stacked against them. For example, Bernoulli's Principle, known as the "law of large numbers," and the Second Law of Thermodynamics both show that over time, differences tend to even out within every system. In facility management terms, if your venue has thousands of guests several times a week all year long, where they will leave behind their daily cares and inhibitions, some people will get hurt. The threat of terrorism is greatest at loosely protected targets with lots of entrances such as public assembly facilities. Some type of natural disaster is possible just about everywhere. Without being alarmist, it is simply a matter of scientific probability that your number will come up.

The history of public disasters suggests the same thing. Prolonged success has tended to result in diminishing safety measures. Failures, and the resulting expensive lawsuits and bad publicity, promote greater safety efforts, and therefore new periods of safe operation. Then the cycle of increasing complacency begins again.

Man-Made Laws of Risk Management. After any damage-producing event, the legal issue is whether the venue, producer, promoter, security, and performer did enough to reduce the risk of the harm that actually occurred. In other words, were these parties negligent? This analysis turns on reasonableness and foreseeability.

The key to whether a venue acted reasonably is what risks were reasonably foreseeable, and whether the venue took reasonable steps to prevent the reasonably foreseeable harm that could result from those risks. A venue need not take every possible safety precaution, only those that are reasonable under the circumstances.

First, a venue must reasonably evaluate its risks. The fundamental risk assessment is:

R=VxTxC (Risk = Vulnerability x Threat x Consequences)

IAAM's Academy for Venue Safety and Security teaches that this equation is the most effective way to look at risk, but any risk assessment is better than none at all. Using the Vulnerability Identification Self-Assessment Tool (ViSAT), for example, would satisfy this reasonable evaluation requirement.

Second, once a venue has done a reasonable risk assessment, it must minimize the reasonably foreseeable consequences. So if the "R" of your equation is big, then the law imposes a duty to take reasonable steps to reduce it. Because reasonableness depends on the facts of a particular event, this can be a complicated analysis which can have important social implications. The following examples may help.

Generally, threats can be divided into "acts of man" and "acts of nature." Acts of man are unforeseeable by definition. But September 11, the subsequent rail bombings in Madrid and London, and the recent shootings at Virginia Tech make it far less reasonable to do nothing to protect against even relatively unlikely events if the venue knows, or reasonably should know, that there would be catastrophic consequences if such an attack were carried out.

Acts of nature can be charted from past events, and therefore foreseeability is well-defined. For example, many dams, including those in New Orleans, were built to withstand "hundred year floods." But Hurricane Katrina may have changed the duty to foresee and protect against natural disasters. People now realize that there were options that could have either strengthened the dams before 2005 or improved the emergency response to a flood, which almost anyone could have foreseen in a city that is mostly below sea level. Media coverage of the post-Katrina chaos has likely made the public much less receptive to claims that disastrous consequences were unforeseeable.

It is no exaggeration to say that everyone involved in litigation has some risk of losing. This even includes the victim. One defense strategy is to allege that the victim "assumed the risk" of his own harm or was "comparatively at fault." Sometimes this works, but blaming the victim can backfire. For example, if an underage drinker gets hurt or hurts someone else, it is tempting to blame him for drinking. Even a modestly competent plaintiff's lawyer, however, will follow the money from alcohol sales back to the venue, promoter, or producer in an effort to show a profit motive in selling to even underage drinkers. Likewise, it may be hard to prove that a concertgoer assumed the risk of standing near a mosh pit if even event security did not see moshing until after the accident. A further practical consideration is that an individual victim may be more sympathetic than a defendant named Incorporated.

When Lawyers Darken Your Door. Hopefully you are doing your R=VxTxC analysis before you suffer a catastrophic loss. Nonetheless, even the best prepared facilities will have problems sooner or later. At that time, lawyers will demand all kinds of paper, from official documents to informal correspondence, and they will ask questions you may prefer not to answer under penalties of perjury.

Whatever you think of lawyers in general or your venue's lawyer in particular, the odds are strongly in favor of you needing one at some point in your career. You simply cannot eliminate risk - you can only hope to manage it.


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