“HOT” TOPIC: E-BIKES AND DANGER THEY POSE

Several residents in our high-rise condominium own electric bikes that they are keeping (and charging) in their units.  Some of our owners have expressed concern about  the risk of  fires caused by the lithium batteries the bikes use, and have asked the board to ban the bikes for that reason.  People who own the bikes obviously don’t like that idea.  Does the board have the authority to ban electric bikes and should we do so?

Concerns about lithium-ion batteries are legitimate and they are growing.  The Consumer Product Safety Commission reports that accidents involving the batteries killed 19 people in the United States last year, six of them in New York City, which probably leads the nation in the use of electric bikes. New York also apparently leads the nation in fires resulting from the explosion of their batteries.   

The New York City Fire Department reported more than 200 of these fires last year.   

We have been following the issue closely, and because of the danger, we have been recommending that our clients protect their communities and prohibit the use of the bikes if not in all buildings, then certainly in high rise communities, where the intense, fast-moving fires exploding lithium-ion batteries produce can be devastating and deadly.

Two of New York’s largest property management companies have banned electric bikes in their buildings. The New York City Public Housing Authority has also proposed a ban, but is considering other options in the face of pushback from the city’s army of delivery workers, who rely on the bikes.  Several colleges and universities, not all of them in New York (Boston College is one), have banned the use, storage, or charging of electric bikes and similar devices on their campuses. The bikes have also become a hot topic in New York City condominiums and cooperatives, many of which are considering rules or covenant changes prohibiting them.  

A change in the condominium covenants would be the best vehicle for implementing a ban, but isn’t essential. 

The board has the authority to enact rules targeting nuisances (which most governing documents prohibit) and barring activities that threaten common area property or the health and safety of condominium residents. 

These principles generally create a solid legal foundation on which to construct rules barring electric bikes, however,  condominium documents do vary, so individual review is required.  Our attorneys have been drafting language that clearly prohibits the use, storage and charging of electric bikes and similar devises in common areas, in individual units, on balconies, terraces and in storage areas.  The ban should exempt electric cars, wheel chairs, ventilators and other medical devices powered by lithium-ion batteries as those do not appear to pose the same risk.

Advocates of electric bikes, who have been (and probably will remain) outspoken, say banning them is unwise and unfair, because it will impede the use of vehicles that are environmentally friendly and essential to the livelihoods of many people.   Instead of banning the bikes, advocates say, condo associations and landlords should adopt rules targeting the risks they create, risks that stem primarily from purchasing flawed batteries or failing to maintain and charge the batteries properly.  There may be some merit to that argument; as the technology evolves, the batteries will probably become safer.

Adopting rules establishing safety requirements for the bikes is an alternative for associations that don’t want to ban them altogether. At a minimum, the rules should require owners to:

• Purchase bikes that are certified by a qualified testing laboratory.

• Use only the cord and power adapter designed for the bike and use only batteries and charging equipment listed by a qualified testing lab.

• Follow the manufacturer’s instructions for charging and storing the equipment.

• Keep batteries and devices at room temperature and away from direct sunlight.

• Only charge the bikes when someone is present.

The rules should also require owners to obtain and document that they have appropriate insurance for the bikes, and to indemnify the association against any damages related to their use.

Enforcing these rules will be challenging,  but adopting and making reasonable efforts to enforce them will give the association some measure of legal protection from litigation resulting from electric bike-related damages. 

On the liability issue, one additional point: If you are going to permit electric bikes in your community, ask the association’s insurance carrier or insurance broker if additional coverage will be required.  As electric bikes become more popular and as awareness of the risks related to them grows, insurance industry concerns, new insurance requirements and possibly exclusions will almost certainly follow.

For more information on what your association can do to restrict e-bikes, please contact Mark Einhorn.