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<p class="MsoNormal">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).<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">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.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">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).<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><b><span style="font-size:10.0pt;color:black">Arthur J. Menor</span></b><span style="color:black"><br>
</span><span style="font-size:10.0pt;color:black">Partner, Board Certified in Real Estate Law</span>
<b><span style="font-size:10.0pt;color:#1AB7EA">|</span></b> <span style="font-size:10.0pt;color:black">
Shutts & Bowen LLP <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt">Fellow, American College of Real Estate Lawyers (ACREL)<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:12.0pt"><span style="font-size:10.0pt;color:black">Tel: (561) 650-8510</span>
<b><span style="font-size:10.0pt;color:#1AB7EA">|</span></b> <span style="font-size:10.0pt;color:black">
Cell: (561) 358-1572 </span><br>
<span style="font-size:10.0pt;color:black">525 Okeechobee Blvd., Ste. 1100, West Palm Beach, FL 33401</span><br>
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<p class="MsoNormal"><b>From:</b> landten-bounces@lists.flabarrpptl.org <landten-bounces@lists.flabarrpptl.org>
<b>On Behalf Of </b>Harry Heist<br>
<b>Sent:</b> Monday, August 19, 2024 5:14 PM<br>
<b>To:</b> 'landten@lists.flabarrpptl.org' <landten@lists.flabarrpptl.org>; 'landtencl@lists.flabarrpptl.org' <landtencl@lists.flabarrpptl.org><br>
<b>Subject:</b> [RPPTL Leasing Committee] Property Managers getting sued<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:red">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.</span><o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal" style="margin-bottom:12.0pt"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:Aptos">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.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:Aptos"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:Aptos">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.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:Aptos"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:Aptos">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.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:Aptos"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:Aptos">If you handle cases like this, please contact me and I will put you on a referral list.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:Aptos"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:Aptos">Thanks, <o:p>
</o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:Aptos"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:Aptos">Harry Heist<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:Aptos"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b><span style="font-family:"Arial",sans-serif;color:#1F497D">LAW OFFICES OF
<br>
HEIST, WEISSE & WOLK PLLC<br>
PH: 1 800 253 8428<br>
FAX: 1 800 367 9038<br>
"Serving the Property Management Professional"<br>
Website: </span></b><span style="font-family:Aptos"><a href="http://www.evict.com/"><b><span style="font-family:"Arial",sans-serif">www.evict.com</span></b></a></span><b><span style="font-family:"Arial",sans-serif;color:#1F497D">
<br>
Email: <a href="mailto:harry@evict.com">harry@evict.com</a> </span></b><span style="font-family:Aptos"><o:p></o:p></span></p>
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