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Insurance > Property Managers Error's & Omission's Liability
Property Managers Error's & Omission's Liability
- An apartment developer assigned its rights to manage the apartments
and collect rents and utility charges from tenants to a commercial property
management company. After the management company raised the rents several
times, the local apartment tenants' association filed suit against the
management company alleging that it had negligently managed the apartments
(miscalculating utilities, renting to loud and boisterous tenants, etc.)
The association sought unspecified damages. The case was favorably resolved,
but defense fees were incurred.
- The owners of a mall retained a commercial property management company
to manage the mall and collect rent from the tenants. The anchor tenant
of the mall, a large clothing retailer, sued the mall owner and management
company alleging that it had been overcharged nearly $175,000 in rent
due to the management company's negligent miscalculation of the floor
space it rented. The retailer requested the return of this amount, plus
interest. The case was settled for a total payment of over $150,000 to
the retailer.
Source, Media Professionals
