Playground liability

Started by GaryS19 • 9 replies • 1768 views

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GaryS19 (South Carolina)
Posts: 4

Posted:

Good afternoon,
I was recently talked into becoming the president of my HOA. One of my concerns is the financial liabilty of the community if there is an injury at our small playground. Is there an index of past discussions or is the list below all that is available?
I know that the swing and play tower must be in good condition but am wondering if adequate signage is sufficient or is an insurance policy necessary? I cannot find any state legislation covering the matter.
Thank you.

SheliaH (Indiana)
Posts: 6,964

Posted:

There should be a search button on the main page - type in something like "playground" see what comes up.

Years ago we replaced our playground equipment, and it was quite enlightening. when the first one went up (before I moved there), it came from a home improvement store, but when it was replaced, I went to a company that specialized in building playground sets (some were quite spectacular and so we thought this would be a great way to encourage kids to use it and not play in the streets.)

The salesman noted since we were an HOA community, his equipment might be adequate because lots of kids would use it and it would wear down quickly. At that time, we didn't have a ton of kids in the community so we thought we'd be ok. In the end, the kids didn't tear it down - but because it had swings and monkey bars, teenagers and older folk proceeded to tear those off the equipment to use as weapons, I'm sure, and the destruction took less than a year.

Our next president was keen on us trying again because he had two young children, and this time, I suggested checking with the local park district to see who they used. We got a referral - along with another suggestion to contact the Consumer Product Safety Commission, as there were standards that would have to be met. We did and learned about quite a bit about putting together a system that was tailored for space (you can't always put in swings), ground cover so the kiddies won't hurt themselves too badly as they run, jump and land on the ground, and the like. We ended up getting a small system with a slide and a small swing for infants and toddlers and something else, but nothing that could be use as a weapon.

Moral of the story - google commercial playground equipment and see if there are companies who can work with you in getting the appropriate type of system (DO NOT buy something from your local hardware or home improvement store - those are for your backyard). It wouldn't hurt to talk to your association insurance company to see how this would impact coverage of the common area - another reason for complying with the CPSC guidelines, which you can find on their website. Enjoy!

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

AugustinD
Posts: 5,144

Posted:

Just sharing info here for the consideration of HOA directors. Read about the $20 million a Nevada jury awarded to the family of a kid injured on a HOA playground:
https://www.reviewjournal.com/crime/courts/jury-awards-20m-in-las-vegas-case-involving-playground-injury/

https://www.fox5vegas.com/news/valley-hoa-will-not-pay-million-to-victim-of-collapsed/article_d95f37d0-65e7-5e49-b710-20d5ac17bd4b.html

and in 2019, this was still being litigated: https://dockets.justia.com/docket/nevada/nvdce/2:2019cv01152/137913

And yes, this was a jury decision ruling the HOA was liable for the injury and so owed the $20 million.

Poor kid. Stupid HOA. Stupid insurer.

GeorgeS21 (Florida)
Posts: 3,808

Posted:

Gary,

Are you saying you do not have liability insurance? How about D&O insurance?

LetA (Nevada)
Posts: 2,679

Posted:

As a result of this incident we have our playground equipment inspected annually by a certified inspector and replace any worn or broken component. In the Vegas HOA case the BOD of the HOA usurped their fiduciary duty and failed to have worn components replaced. The 20 million jury verdict in this case essentially gives the victim in this case the right to foreclose on every single homeowner to satisfy the judgment. The BOD and the attorneys for the insurance company dug their heels in, rolled the dice and lost.

GenoS (Florida)
Posts: 4,276

Posted:

Quote:

Posted By GaryS19 on 01/27/2020 10:32 AM
Good afternoon,
I was recently talked into becoming the president of my HOA. One of my concerns is the financial liabilty of the community if there is an injury at our small playground. Is there an index of past discussions or is the list below all that is available?
I know that the swing and play tower must be in good condition but am wondering if adequate signage is sufficient or is an insurance policy necessary? I cannot find any state legislation covering the matter.
Thank you.

Start with your insurance company. I wouldn't personally remain on the board of directors of any HOA that didn't have liability insurance, and for more than just the playground. That's beyond insane risk.

GaryS19 (South Carolina)
Posts: 4

Posted:

Thanks for your comments. I have been aware of the $20 million settlement. I have been asking about liability issues ever since moving here six years ago. I only joined the board a few weeks past so I am looking for solutions. I assure you, that if the problems are not resolved within a few weeks I will be resigning. I have talked to lawyers about signs and signed releases, so am trying to get as much information as possible. Also, the $20 million settlement is an eye opener but is not necessary precedent setting, as it was a Nevada district court and not federal.
Again, thank you for your help and comments.
gary

GeorgeS21 (Florida)
Posts: 3,808

Posted:

Gary,

Again, does the HOA have liability, and D&O, insurance?

AugustinD
Posts: 5,144

Posted:

Quote:

Posted By GaryS19 on 01/27/2020 7:05 PM
Also, the $20 million settlement is an eye opener but is not necessary precedent setting, as it was a Nevada district court and not federal.

-- It was a trial court decision, so even if it were in your state, and even if it were a federal trial court decision, there would be no precedent binding upon any other court.

-- I would have hoped that it would be obvious to you that the HOA needs insurance on its common areas. From slip-and-falls to playground accidents to the landscaper or handyman accidentally cutting off a finger. The article should have been an eye opener but because of your comment above, I have doubts.

-- Have you talked to a HOA attorney about your HOA's insurance needs and the risk of not having insurance?

-- Some HOA Declarations state that the HOA is required to have insurance. Have you read your HOA Declaration and looked for such a requirement?

KellyM3 (North Carolina)
Posts: 2,239

Posted:

Gary,

Definitely call your insurance company and ensure you're covered. That's about all you need to do if the playground is a cherished amenity (and your HOA by-laws demand that all amenities remain and can't be removed without a vote of membership).

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