Being sued...

[Jay Helms]

How do you protect yourself from something like this:  http://www.weartv.com/news/features/top-stories/st...

The article states the jury found the apartment complex at fault "for not providing proper security the night their son was murdered.". I wish more details of the security protocol & horrific incident were given, but how do you protect your MFR investment from being sued over and/or won against something like this and can the same scenario be applied to SFRs?

Disclaimer: I realize that unless you're an attorney, any reply/post to this specific thread is just your opinion and I will not hold you accountable. Actually meeting with my lawyer today on a separate note and will bring it up. 

[Christopher Mendoza]

@Jay Helms 

 Here is an article that talks a bit more about the reason for why the management and owners were held liable for the murder: http://www.pnj.com/story/news/local/escambia-count...The linked article suggests that there had been a history of crime at the complex. 

In all likelihood, the underlying claim was negligence. Now, negligence is a legal term that evolves depending on the situation, participants, etc. It is comprised of a few elements, one of which is breach of the duty of care. The most highly contested portion of that case was probably the breach of that duty of care a landlord owes its tenants. 

As a landlord, property manager, owner, you should always do an assessment of your property and the environment. Attorneys have tried to put the breach of the duty of care into mathematical terms whether any action or inaction was negligent by using the BPL analysis:

B=burden (cost)

P=probability of loss

L=gravity of loss

If the BP>L, then you are likely negligent. Let me give you an example using the situation involving the cited article. It is difficult to quantify all of this, so it is very much an art as it is a mathematical equation.

We know there is a history of crime in the area. We don't know if it is domestic violence, drug trafficking, kidnapping, or murder. Let's assume that it was violent crime, such as strong arm robbery, shootings, etc. 

As a result, this is how our analysis looks:

L=strong-arm robbery, shooting, murder, severe injury

P=probably a high probability considering that these activities have been on going in the complex. According to the article, this complex had a history of crime.

B=cost to curb the loss. This can include stuff such as putting a gate around the complex so only residents can enter, putting in motion-activated lights, security guard, emergency/panic alarms (similar to what you see on university campuses). 

Once you look at it, you can probably see how the BP>L. We don't know the complete facts, but the BPL analysis helps people understand negligence. The L is pretty high--there is not much worst than murder. The P is likely high because of the criminal activity at the complex. The B can vary depending on what the landlord chooses to do. 

I know you had a disclaimer in your original post. But, as a lawyer, I should also say that this advice is general in nature and does not create an attorney-client relationship.