[RPPTL Leasing Committee] Property Managers getting sued

[Arthur J. Menor]

Harry, suing the Property Manager as well as the Landlord is common on the commercial side.  Since the risk of premises liability claims is generally considered a risk of the owner of the property and commercial general liability insurance (CGL) covers these claims, most Property Management Agreements provide for the Owner to carry commercial general liability insurance for the Property and to indemnify the Manager against premises liability claims (usually unless the claim results from the sole negligence of the Manager or some type of claim beyond simple negligence).

The Property Manager should still carry its own commercial liability insurance policy and most Property Management Agreements require them to do so.  The Owner’s CGL coverage should be primary  to the Manager’s coverage for premises liability claims but is still there to protect the  Manager if for any reason the Owner’s coverage does not apply.

In your case, your clients who are getting sued should report the claims to their CGL carrier and should demand indemnification from the Owner/Landlord (even if the Property Management Agreement does not contain an express indemnity).

Arthur J. Menor
Partner, Board Certified in Real Estate Law | Shutts & Bowen LLP
Fellow, American College of Real Estate Lawyers (ACREL)
Tel: (561) 650-8510 | Cell: (561) 358-1572
525 Okeechobee Blvd., Ste. 1100, West Palm Beach, FL 33401
Bio<http://www.shutts.com/professionals-arthur-j-menor> | E-Mail<mailto:AMenor at shutts.com> | vCard<http://www.shutts.com/vcard-895.vcf> | www.shutts.com<http://www.shutts.com/>

[http://ftp.firmseek.com/shutts/images/shutts105.jpg]

From: landten-bounces at lists.flabarrpptl.org <landten-bounces at lists.flabarrpptl.org> On Behalf Of Harry Heist
Sent: Monday, August 19, 2024 5:14 PM
To: 'landten at lists.flabarrpptl.org' <landten at lists.flabarrpptl.org>; 'landtencl at lists.flabarrpptl.org' <landtencl at lists.flabarrpptl.org>
Subject: [RPPTL Leasing Committee] Property Managers getting sued

EXTERNAL: This email originated from outside of the SHUTTS email system. Do not respond, click any links or open any attachments unless you trust the sender and know the content is safe.


We are running into more and more cases where, in addition to the property owner,  the property manager is being sued on PI claims.  Examples like tenant goes into attic, falls through ceiling or tenant claims they were injured by falling window covering.

Most E & O insurance seems to be useless and the property manager is left not knowing what to do or who to contact for defense of a PI suit.

Often the property manager is eventually dropped from the suit but in the meantime is faced with having to find an attorney to file an answer, deal with opposing counsel etc.

If you handle cases like this, please contact me and I will put you on a referral list.

Thanks,

Harry Heist

LAW OFFICES OF
HEIST, WEISSE & WOLK PLLC
PH: 1 800 253 8428
FAX: 1 800 367 9038
"Serving the Property Management Professional"
Website:  www.evict.com<http://www.evict.com/>
Email:  harry at evict.com<mailto:harry at evict.com>


-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/landten/attachments/20240820/08c2f539/attachment-0001.html>