It’s not just about slip & falls- the Second Circuit Court of Appeals just issued a ruling that says that landlords can be liable for their tenants’ discriminatory conduct. Francis v. Kings Park Manor, Inc., 15-cv-1823 (2d Cir. Mar. 4, 2019).
The Plaintiff in the case (an African-American man) was being harassed by a neighbor-tenant (racial slurs, religious slurs, death threats, etc.). He reported the harassment to the police and complained to his landlord (the offending neighbor ended up pleading guilty to the criminal harassment charges).
The landlord took no action, despite the victim/tenant complaining to him on a regular basis. On appeal to the Second Circuit, the Court held the landlord liable for failing to address the repetitive reports of the harassment.
This case is yet another example of the liability that comes with property ownership.
What should you do if you are a landlord?
First of all- follow the law! You should take any and all complaints of harassment/discriminatory behavior seriously. Make sure you memorialize the right to address these issues in your lease agreements.
Consider asset protection to limit personal liability: In addition to insurance, asset protection entities, such as Nevada Limited Liability Companies (LLCs), Nevada Asset Protection Trusts, (NAPTs), and/or Nevada Series LLCs can help minimize exposure of personal or other assets to a claim arising out of the subject property & associated tenants. To find out more on this, check back here for our ongoing Asset Protection Series, or contact us if you are interested in learning more by meeting with Nevada Asset Protection attorney, Tiffany Ballenger Floyd.
-by Tiffany Ballenger Floyd, Esq. (Nevada & California Estate Planning Attorney), © 2019, Phillips Ballenger, PLLC
Photo by Erik Mclean on Unsplash