Michigan House Passes Premises Liability Bill to Restore 'Open and Obvious' Defense Against Rising Lawsuit Costs

House Bill 4582 Aims to Bring Clarity to Property Owner Liability After Michigan Supreme Court Ruling

LANSING — The Michigan House of Representatives passed legislation on March 11, 2026, that would restore a long-standing legal defense for property owners facing lawsuits over injuries on their premises. House Bill 4582, sponsored by Republican State Representative Jerry Neyer (R-Shepherd), seeks to reinstate the "open and obvious" doctrine that had been eliminated by Michigan Supreme Court rulings three years ago.

The Legal Backdrop

The bill responds to two landmark Michigan Supreme Court decisions from 2023: Kandil-Elsayed v. F & E Oil, Inc. and Pinsky v. Kroger Co. of Michigan. These rulings transformed the "open and obvious" doctrine from a complete legal defense into merely one factor that juries could consider when determining liability in premises cases.

Under the previous standard, property owners who could demonstrate that a dangerous condition was both visible and avoidable were generally shielded from liability. The new court interpretations removed this protection, requiring judges and juries to engage in complex factual inquiries about whether an "open and obvious" hazard nonetheless posed an "unreasonable risk of harm."

Why This Matters for Small Businesses

"The Legislature has the opportunity to eliminate the uncertainty of the courts with a standard that will provide clarity and predictability for not just property owners, but all Michigan residents," said Amanda Fisher, NFIB Michigan State Director, who testified in favor of the legislation.

Fisher emphasized that for decades, the "open and obvious" rule served as a clear, objective standard that allowed courts to dismiss meritless claims early in litigation. Without it, judges and juries now must engage in complex factual inquiries about whether an "open and obvious" hazard nonetheless posed an "unreasonable risk of harm." This subjective standard increases litigation costs and clogs judicial resources with cases that previously would have been resolved swiftly.

The Business Impact

State Representative Neyer highlighted the practical consequences of the Supreme Court's 2023 decisions. "Most people understand a simple rule: if a danger is obvious, you should avoid it," Neyer said. "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 pointed to specific evidence of the problem. 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."

Key Provisions of the Bill

House Bill 4582 would establish a new Premises Liability Act that codifies the "open and obvious" defense back into Michigan law. Under the bill:

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

"The bill also prevents individuals injured while committing crimes such as breaking and entering from suing the property owners they were victimizing," Neyer explained.

Aims to Restore Balance

"House Bill 4582 restores balance to Michigan law," Neyer said. "This legislation protects workers, entrepreneurs, and local businesses while ensuring legitimate victims can still pursue justice. It's about fairness, predictability, and bringing some common sense back to our legal system."

Next Steps

The legislation now advances to the Michigan Senate for consideration. If the Senate approves the bill, it would then go to Governor Gretchen Whitmer for her decision to sign or veto it.

Broader Context

This legislation comes amid ongoing concerns about liability costs and litigation burdens on Michigan businesses. The NFIB Small Business Legal Center has been actively involved in similar efforts to restore common-sense legal standards that protect property owners while still allowing legitimate claims to proceed.

Michigan Legislative Consultants, a bipartisan lobbying firm based in Lansing, has noted that the bill responds directly to Michigan court rulings that had shifted the "open and obvious" doctrine from a complete legal defense to only one factor considered in liability cases.

What's at Stake

The outcome of this legislation will have significant implications for property owners across Michigan, from small business owners to homeowners and apartment complexes. By restoring the "open and obvious" defense, the bill aims to reduce uncertainty in the legal system and help control rising insurance costs that ultimately affect all Michigan residents.

The Senate is expected to take up the legislation in the coming weeks, with stakeholders on both sides of the issue likely to weigh in as the bill moves through the legislative process.