PM Didn't Make Repairs-Liable for Damages?

[Jeff M.]

This sounds like a legal no-brainer, but wanted some back-up from the group. My PM in Columbia, SC notified me of a potential water heater problem last August. I recommended they make the necessary repairs. Since I never received an invoice, in January I enquired if the repairs were done. They weren't. Delaying such repairs could've caused the water heater to fall through the ceiling and do considerable damage, both to person and property. I sternly advised them to quickly address the matter, reminding them of their liability if the worst happens. 

Today, I get a casual email stating the tenant called the emergency line over the weekend to report the water heater had burst and water was leaking through the ceiling. The PM asks if I "approve the repair". Their neglect and incompetence contributed to the magnitude of the final problem which, I believe, they are ultimately liable for. I gave them two choices: 1) Decide what is fair compensation/reimbursement OR 2) Let a judge decide.

I know this happens more than it should. Have you ever had to take a PM to small claims for being negligent in their maintenance duties?

Thanks!