Because higher class means less punishment potential for being poor at all the other things that TRULY matter most, HOW YOU OPERATE. 

I am not saying be vengeful or to try and punish this person, but RE is for most people the largest investment they will ever make.

Require a JV agreement which holds the ground partner accountable (even punishes) for communication, work completed by certain milestones, and unforeseen issues.  

I Wish we did.. keep guys like you who want to run to an attorney for any little thing in check.And like Tim Said the only one who would hire an attorney for the case presented is either a fool, or has money and just wants to punish someone because they are mad and the attorney taking the case has limited ethics as they should deny taking the case in the first place.. as frivolous. your opinions are based not on reality and experience were as mine and Tims are .

@Kenneth Garrett The move in fee is increasingly popular in the City of Chicago because of its punishing CLTO and the potential penalties for not following the rules re: security deposits.I personally like a move-in fee (at half-month's rent) because it guarantees me $ for things like repainting and minor repairs between tenants that wouldn't otherwise be able to be deducted from the security deposit but always need done.Downside is it is less money in your possession if something major happens.

If he committed fraud, he should be punished. 

Thinking of buying the highest ROI properties in the rough areas and just handing them over to a PM and let them take the punishment, is a common mistake.  

I do not think punishing someone for being successful is good mojo so I couldn’t do it.

Now, that said, I find it hard to believe that strong punishments can generally be enforced without a lot of difficulty by the local law enforcement.As an example, what if you had one other investor who you were constantly competing with...what would stop you from putting out signs with his name and phone number on them (other than you breaking the law and being unethical :)?

That does not make him a professional tenant, possessed of an entitlement mindset (except insofar as he is in fact entitled to what he paid for), or someone who must be punished as proof the landlord cannot be pushed around (I'm wicked tough, respect my author-i-tie!)