Personal injury Lawsuit

[Sheba Shimoji]

Hi, everyone. Today, when I returned to one of my rental properties that I purchased two months ago, six unknown people were gathered around my property. They were taking pictures and measurements of the outside stairs to the 2nd floor unit. When I reached up to them and asked what's going on, they told me that they are lawyers and engineers, and there is a lawsuit against the previous landlord of this property. A tenant who lived in the upstairs unit was carrying her laundry basket going down the stairs and fell two years ago. She did not break a single bone but  scratches on her legs. She has a weak immune system so her scratches became infected. Now, two years after the accident, she is suing her landlord who used to own this property. 

It has nothing to do with me but made me think so much about a potential lawsuit against me as a landlord/property manager. 

The stairs look fine and I never thought that they needed any repairs. I am not sure who is going to win in this case. I will be following up. But it seams like it was the tenant fault not being careful enough and not using the railing.

Do anyone experienced similar lawsuit? How do you protect /prepare yourself from such a lawsuit besides insurance?

[Eddie Memphis]

That's scary. When insurance lawyers get involved, it's not good for anyone... except them.

You need to make sure your personal assets are isolated from your business. And have a personal umbrella policy. 

This is why so many people on this site have stressed having a team in place. Lawyer, Insurance, CPA.

It turns out, we, as real estate business owners, are each going to be sued, at least once. So we need to prepare for that eventuality.

As we say in the motorcycle world, dress for the crash, not for the ride.

Eddie