Problem: no one is asking for permission before they use public space.
Solution: Stop granting permission for people to use public space.
Now ask yourself, does the solution do anything to solve the problem? I get that they don't want to issue permits/licenses that then conflict with the advice on walkability, so issue 180 day permits or some such thing. But the above illustrates the issue here - if the city just stops granting permission, now there's no point in even asking.
The issue needs to be addressed in a coherent manner. So good for them. But this temporary "no more" thing doesn't seem to make much sense.
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Re the liability issue, it would be difficult for the City to face significant liability from public use of a sidewalk. Start with the intervening causes that were given above (person driving their car onto the sidewalk) and end with the liability cap of $175k for governmental torts. Can someone sue them? Sure, but suing the City is often a poor strategic decision. Making the City an additional insured on a reasonable premises liability policy (required for almost any occupancy lease anyway) should be basically nothing.
You are responsible for actions of others on your property. Even when they tripped on their own feet, even when a crazy shoots up your place (why didn't you have security?) even when it doesn't seem fair, you will be sued and you must defend.
You are not responsible for the actions of others on your property. You do have certain duties to trespassers (not to do anything likely to hurt them or entice them to be injured), to guests (to warn of known dangers), and to people you invite onto your property to do business (to keep your business in a reasonably safe condition and warn of known dangers). Oklahoma Uniform Jury Instruction 11.10 defines the duty for business invitees clearly:
It is the duty of the [owner/occupant] to use ordinary care to keep [his/her/its] premises in a reasonably safe condition for the use of [his/her/its] invitees. It is the duty of the [owner/occupant] either to remove or warn the invitee of any hidden danger on the premises that the [owner/occupant] either actually knows about, or that [he/she/it] should know about in the exercise of reasonable care, or that was created by [him/her/it] [or any of [his/her/its] employees who were acting within the scope of their employment]. This duty extends to all portions of the premises to which an invitee may reasonably be expected to go.
http://www.oscn.net/applications/oscn/DeliverDocument.asp?CiteID=74086Could you be sued even though someone trips over their own feet? Sure. You can be sued for anything by anyone. I can sue you because you sneezed and I believe it makes you possessed by the devil and therefore responsible for damage to my bike yesterday. Of course, that doesn't make it so. And with a good judge, you would be tossed out of Court and sanctioned.