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Updated about 3 years ago on . Most recent reply

Account Closed
  • Investor
  • Oakland, CA
7
Votes |
18
Posts

Help! Tenant suing 4 Million for negligence

Account Closed
  • Investor
  • Oakland, CA
Posted

I have a tenant who is suing myself and my property manager for claims of negligence and inhabitability. She has played a clever game of never asking us directly for repairs, bringing in code enforcement to cite me and then denying me access to make the repairs despite agreed upon appointments and written notifications. The suit is pretty ridiculous for 2 Million against me and 2 million against my property manager.

I have personal umbrella policy but that only represents me. I'm assuming my property manager will have to get their own legal representation. Any advice or lessons learned on how to handle the situation to stay on the same page with my property manager. We have a good relationship and I want to stay a united front but I know when things get stressful people panic.

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JD Martin
  • Rock Star Extraordinaire
  • Northeast, TN
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JD Martin
  • Rock Star Extraordinaire
  • Northeast, TN
ModeratorReplied

I would worry Zero about this. I would turn it over to my insurance company and let them figure it out from there. If your property manager doesn't have insurance, they're not very smart. Even at that, I imagine the suit goes absolutely nowhere. Anyone can file suit against anyone for anything. Whether or not it goes anywhere is a whole different story. I have been sued once as an agent of my organization and twice individually. My total costs were less than $1,000, and $500 of that was just to settle one of them without admission of anything because that was cheaper than paying my lawyer another $2k to begin preps for trial. 

Your liability insurance should really be kicking in first. Your PUP would only kick in once you are beyond your liability limits. I don't know what kind of limits you carry but I like $1 mil incident/$2 mil total, with a PUP on top of it. 

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Skyline Properties

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