(The opinions expressed here are those of the author, a
columnist for Reuters.)
By Jenna Greene
May 7 (Reuters) - Sebastian Mejia died in the shower of
an Airbnb ( ABNB ) rental in Brazil in 2022, the alleged victim of carbon
monoxide poisoning from a faulty water heater. A Fulbright
scholar, the 24-year-old Florida native was studying the
country's indigenous communities.
That same year, an American woman staying at an Airbnb ( ABNB )
in Croatia allegedly shared his fate, as did a trio of American
tourists at an Airbnb ( ABNB ) in Mexico City, a man on a work trip to
San Luis Potosí, Mexico, and a Loyola Marymount graduate student
at an Airbnb ( ABNB ) in Guadalajara in late 2021, court records show.
None of the properties was equipped with detectors that would
have alerted occupants to the odorless, colorless gas, the
victims' families' allege in a series of wrongful death lawsuits
against Airbnb ( ABNB ).
As the cases make their way through the courts, they raise
questions about the reach of Airbnb's ( ABNB ) arbitration agreement and
whether the short-term rental platform has a duty to protect its
users from harm caused by third parties at properties it says it
"does not own, have a right to access, or control."
To find otherwise, Airbnb ( ABNB ) argues in court papers, would
"radically expand tort liability."
A spokesperson for the publicly traded San Francisco-based
company, which reported more than $11 billion in revenue last
year, said in a statement that there "have been over 2 billion
guest arrivals on Airbnb ( ABNB ), and incidents are exceptionally rare."
The spokesperson added that Airbnb ( ABNB ) has given away more than
280,000 free combined smoke and carbon monoxide detectors to
hosts.
On Thursday, Airbnb ( ABNB ) lawyers from O'Melveny & Myers will face off
at a hearing in San Francisco Superior Court against counsel for
the widow of José Peñaloza Herrera to argue that the claims fail
as a matter of law and should be dismissed. Herrera, a Mexican
citizen, had been on a work trip to install machinery at an
automotive plant when he died of carbon monoxide poisoning while
sleeping in a room that contained a gas-powered water heater and
other appliances, according to the complaint.
Pedro Echarte, a partner at the Florida-based Haggard Law Firm
who represents plaintiff Yessica Garcia Cardenas, argued in
court papers that there have been at least 19 deaths due to
carbon monoxide poisoning at Airbnb ( ABNB ) rentals abroad since 2013.
Airbnb ( ABNB ) did not respond to my requests to confirm that
number, which Echarte told me is based on news reports of the
deaths.
By the time Herrera died in December 2022, the company
should have known it was a "systemic problem," Echarte said,
especially at properties in Central and South America, where
fuel-burning water heaters that can emit carbon monoxide are
more common.
Airbnb ( ABNB ) was "on notice of repeated incidents of its guests
dying" from the gas, he argued, but "inadequately responded to
the danger."
To be clear, carbon monoxide poisoning doesn't just happen at
Airbnbs. For example, the teenage son of former New York Yankees
outfielder Brett Gardner died of carbon monoxide poisoning in
March while staying at a five-star hotel in Costa Rica,
authorities determined last month.
Assigning liability, however, can be far murkier when travelers
rent from a third-party host. The big question: What duty - if
any - does Airbnb ( ABNB ) owe its customers to keep them safe?
After a carbon monoxide death of a Canadian tourist in Taiwan,
plaintiffs alleged that Airbnb ( ABNB ) in a 2014 blog post (available
here on the internet archive the Way Back Machine) stated it
would "require all Airbnb ( ABNB ) hosts to confirm that they have
(carbon monoxide detection) devices installed in their
listing."
That apparently didn't happen, given the subsequent lawsuits.
When I asked Airbnb ( ABNB ) why, the spokesperson didn't provide an
explanation. However, if a guest now books a listing where the
host doesn't report having a carbon monoxide detector, Airbnb ( ABNB )
flags it in the booking confirmation, along with a
recommendation to bring a portable detector. (You can buy one
starting around $25.)
Plaintiffs lawyers argue Airbnb ( ABNB ) should have reasonably
foreseen there would be subsequent deaths by carbon monoxide
poisoning at properties without the alarms - and should be held
liable for negligence and premises liability as a result.
"The tragedy is that these deaths were so easily avoidable,"
said James Ferraro, who along with partner Jose Becerra
represents Rosa Martinez, whose son Sebastian Mejia died in
Brazil.
In suing Airbnb ( ABNB ), Martinez alleges not just wrongful death - the
only cause of action in Echarte's case - but also asserts
broader claims including fraud, negligence and breach of
fiduciary duty. She also seeks injunctive relief to force Airbnb ( ABNB )
to remove all active listings without carbon monoxide alarms.
Airbnb ( ABNB ) initially asserted the entire case was subject to
arbitration based on its terms of service. On appeal, it
eventually withdrew its argument that the wrongful death claims
were within the scope of the agreement.
In March, the First Appellate District Court in San Francisco
split the case, sending the portion seeking survivor benefits -
relief for claims such as fraud that would have belonged to
Mejia and passed to his successors in interest - to arbitration.
However, the court ruled the wrongful death claims could be
tried in court, as could the claim for public injunctive relief.
Left unanswered: What if there are inconsistent rulings in
the two forums?
Last fall, a federal judge in San Francisco faced a similar
dilemma in a lawsuit involving Monique Woods, the Airbnb ( ABNB ) guest
who died in Croatia. U.S. District Judge Maxine Chesney sent the
successor-in-interest claims to arbitration and stayed the
wrongful death claims. Chesney also noted that plaintiff Cindy
Woods, the victim's mother, created an Airbnb ( ABNB ) account in 2013
and agreed to arbitrate all disputes.
To conserve judicial resources and ensure consistency, the
judge put the arbitration first.
"Here, the outcome of the wrongful death claims will depend upon
the arbitrator's decision as to the viability of the survival
claims," she wrote. That's because the arbitrator will make
findings on the same primary issues, such as what duties Airbnb ( ABNB )
owes its customers and whether the breach of any such duty was a
proximate cause of injury.
Of course, that also means the arbitrator is empowered to
decide if the wrongful death claims can move forward, even if
the claims themselves won't be arbitrated.