Real Estate Agent Sued over Verbal Agreement

A Houston CEO is alleged to have verbally agreed to buy the $8M home of his neighbor, when the house was later sold to someone else he sued. The former owner and his real estate agent are being sued for breach of contract and, conspiracy and discrimination.

Contact BrokerLiability.com today to better protect your real estate organization.

 

 

 

 

 

 

 

 

Lack of Expert Testimony Forces Court to Dismiss Lawsuit

A bankrupt furniture company brought a malpractice lawsuit against its law firm, alleging that improperly performed services helped lead the company into bankruptcy.  A New York Federal judge dismissed the lawsuit, citing that the plaintiff failed to produce evidence or expert testimony to support its claim.

While this case was specifically brought against a law firm, the lessons learned can apply to many professional service firms.  BrokerLiability.com explains that a professional liability insurance policy will protect a real estate firm in the event of a lawsuit, provide a defense in court, and navigate a path to a speedy conclusion.  It is important for insurance policies to be broad and well defined so that they provide the maximum coverage for firms. Contact us to discuss how to better protect your firm.

Former CEO of Large Real Estate Firm Sues over Fees Due

Daniel Miranda, Former CEO of MB Real Estate Services is suing his former company over fees that were never paid him.  Miranda alleges that as part of the separation agreement when he left Marc Realty in 2003, it was agreed that he would be paid a portion of a large real estate management contract he helped negotiate prior to his departure.  Miranda claims that the payments stopped despite the management contract still being in place with that client.

BrokerLiability.com comments that one important fact of this case is that the current CEO of Marc Realty is specifically named in the suit.  While most real estate firms buy professional liability insurance, not as many purchase directors and officers insurance, which would provide defense for the CEO in this case. Contact us today to discuss whether directors and officers insurance is right for your firm.

 

 

 

 

 

 

Broker Terminated After Sale, Sues

A South Florida real estate broker sold her agency and was later fired from the merged firm. She is now suing for breach of an agreement to pay her 25% of net operating profit of the office she joined.

Contact BrokerLiability.com today to discuss any potential liabilities created out of mergers and acquisitions.

FHA Condominium Provisions Changed

The Federal Housing Administration has revised their guidelines for condo developments, this move is expected to increase condo sales in the short term. The new rules allow 50% of units (up from 10%) to be controlled by a single investment entity, allows applicants to request exceptions for large commercial units in buildings that are “primarly residential” and  has allowed condos to have up to 15% of owners delinquent for 60 days (upped from 30).

Contact BrokerLiability.com to discuss positioning your firms professional liability insurance when brokering or managing condo properties.

Document mishandling tops list of claims – ABA report shows

The American Bar Association recently released a study that looked at the types of claims law firms had against them during 2008-2011.  The highest frequency of claims came from errors in real estate transactions.  The report explains that “preparation, filing, and transmittal of documents” was the primary source of claims.  “Advice” was the second largest and previous reports show that “failure to file a document – no deadline” was also a leading source of mistakes.

Risk managers and owners of real estate firms can learn from this as well.  By addressing the document handling policies and professional qualifications/expertise each real estate broker is responsible for can help minimize the risk for lawsuits. Contact a broker today to further discuss ways to further mitigate your real estate firm’s risks.

$2.3M paid to settle sexual harassment claim by Fry’s Electronics

The EEOC reported that the ongoing sexual harassment lawsuit brought against Fry’s Electronics by two employees has been settled.  The settlement called for a payment by Fry’s of $2.3M as well as the implementation of corrective measures and personnel training.

Our brokers remind clients that a discrimination hotline and harassment policy is necessary when managing a firm’s risk to employment practices liability.  Contact a broker at BrokerLiability.com today to learn more about EPL insurance and how to better protect your firm.