Michigan Legislature Moves to Restore Property Owner Protections

LANSING — The Michigan House of Representatives passed House Bill 4582 on Tuesday, restoring a long-standing legal defense for property owners that was effectively eliminated by recent Michigan Supreme Court decisions.

The bill, sponsored by Rep. Jerry Neyer (R-Shepherd), would reinstate the "open and obvious" doctrine in premises liability cases, returning to a standard that had been in place for decades before 2023 court rulings shifted Michigan law.

What Changed in Michigan Law

The legislation responds to two key Michigan Supreme Court decisions — Kandil-Elsayed v. F & E Oil, Inc. and Pinsky v. Kroger Co. of Michigan — which changed how courts evaluate "open and obvious" dangers in premises liability cases.

Under the old standard, if a hazard was clearly visible and a reasonable person could have avoided it — such as a large pothole in a parking lot, a wet floor with warning signs, or cracked sidewalk — property owners generally had no duty to protect against it. The "open and obvious" doctrine served as a complete legal defense that could dismiss cases early.

The 2023 Supreme Court rulings shifted the doctrine from a complete defense to merely one factor considered in liability cases. Under the new standard, property owners could still be held liable for hazards that are open and obvious if the court determines they posed an "unreasonable risk of harm."

Why Property Owners Are Concerned

NFIB Michigan State Director Amanda Fisher described the House passage as a win for small businesses across the state. "This legislation protects property owners and businesses from being held liable for obvious dangers that people should avoid," Fisher said.

According to NFIB, the "open and obvious" doctrine had become an effective threshold issue that allowed judges to dismiss meritless claims early in litigation. Without it, judges and juries must now engage in complex factual inquiries about whether an obvious hazard nonetheless posed an unreasonable risk.

Rep. Neyer echoed these concerns in a statement. "For decades, Michigan law recognized that same common-sense principle. Recent court decisions took that clarity away, creating uncertainty that is driving up lawsuits and insurance costs for businesses and property owners across our state," Neyer said.

He noted that in some cases, liability insurance premiums have tripled as businesses face higher legal risks and settlement costs. "Small businesses are especially vulnerable," Neyer said. "Many simply cannot afford prolonged legal battles and feel pressured to settle even when they may not be at fault. Those rising costs don't stay in the courtroom. They get passed on to workers, consumers, and families."

What the Bill Would Do

HB 4582 would establish a new Premises Liability Act that codifies the "open and obvious" standard in state law. Key provisions include:

  • Property owners generally would not have a duty to protect against hazards that are open and obvious
  • Claims would still proceed when dangerous conditions are effectively unavoidable or pose an unusually high risk of severe harm
  • The bill would prevent individuals injured while committing crimes — such as breaking and entering — from suing property owners they were victimizing

"The bill restores the previous standard by clarifying that property owners generally do not have a duty to protect against hazards that are open and obvious," according to MLC Communications Director Liz Gullett.

Legislative Path Ahead

The House passed HB 4582 with bipartisan support on March 11, 2026, with a vote of 58-48. The bill now advances to the Michigan Senate for consideration.

The bill's sponsors include Reps. Jerry Neyer (District 92), Bradley Slagh (District 85), Joseph Pavlov (District 64), David Martin (District 68), Angela Rigas (District 79), Timothy Beson (District 96), Gregory Alexander (District 98), John Roth (District 104), and William Bruck (District 30).

The Michigan Legislature is currently scheduled to adjourn until April 14, 2026, when both chambers will reconvene for the final stretch of the spring 2026 session.

Context: Recent Supreme Court Rulings

The 2023 Michigan Supreme Court decisions that prompted this legislation fundamentally changed premises liability in the state. Before those rulings, the "open and obvious" doctrine provided property owners with robust protection against lawsuits for hazards that were visible and avoidable.

Under the new standard, courts must now evaluate whether an open and obvious condition nonetheless created an unreasonable risk. This subjective analysis has increased litigation costs and made it harder to dismiss cases early in the process.

NFIB testified in favor of HB 4582 and was instrumental in shepherding the legislation through the House. The organization has been actively advocating on behalf of small businesses facing increased legal exposure and insurance costs from the changed liability standard.

The Senate's action on the bill will determine whether property owners across Michigan will get legislative clarity on a legal standard that businesses say has become essential for managing legal risk and keeping insurance costs manageable.

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