My uncle lives in a town where he flips run down properties and rents them out to people. In having so many, he would from time to time forget things to do. He isn't a mean guy and would never purposely not do something that can cause harm. He is a real honest guy but it might have hurt it recently.
In a nutshell, a tenant was injured at one of his several rentals due to a defect in the walkway leading to the building.
At my uncle at some questioning at the court house. He said that he was aware of the defect a few weeks before the incident, didn't tell any of his tenants, didn't flag the defect to make it more obvious and stated that it would have been a simple repair only taking a few minutes.
Also come to find out that the defect would be a violation of a ordinance code as well.
He is a really nice guy and wouldn't have done this on purpose. He had a lot of things going on flipping the properties and forgot minor things sometimes. Is there a way he could get out of this with no liability? I heard people have to watch where they are going as well. If this does go to trial what is the chance of the jury asserting 0 % liability on my uncle?
It sounds like your uncle has some exposure here, but I think a jury could find that the defect was not the cause of the plaintiff's injuries, based on your description of the facts, or that the plaintiff was partially or completely responsible for his or her own injuries.
The question of whether your uncle could lose everything in this case depends on much more than whether he wins or loses this case. First, he hopefully bought property insurance and filed a timely claim with them. If that's what he did, then the insurance company probably is paying for an attorney for him and will be the first source of recovery if your uncle loses the case. Second, even if he didn't buy property insurance (though most mortgages require maintaining proper insurance at all times), he hopefully put ownership of the property in an LLC or corporation so that he isn't personally liable for the debts of the LLC/corporation. Third, if he didn't do any of those steps, he still might avoid liability or limit his damages by convincing the jury that the tenant was completely or partially at fault.
I hope your uncle has a premises liability litigation attorney representing him in this lawsuit. If not, he needs to get such an attorney right away to help him negotiate a settlement or otherwise defend this suit. Just as importantly, your uncle needs to speak with a real estate attorney for advice on how to protect the rest of his investments and assets so that if and when a similar incident occurs on one of his other properties, his personal assets and other properties are not at risk.
Best of luck to your uncle in reaching a favorable resolution.
Dear will my uncle lose everything?
You pose a tough question. I agree with my colleague's earlier answer. I have some additional ideas which may help.
Your question implied that your uncle is not insured. If that is the case, the entire expense of litigation and of course the exposure to a money judgment rests on him alone. If he is not using an attorney his exposure to monetary damages is at the maximum.
If he is not insured he must make take into account the expense of maintaining insurance as part of his on-going business model in flipping run down property.
Your question and detailed facts also expose your uncle's legal problem to a potential juror in East Greenbush and in Rensselaer County. If his case goes to trial his attorney needs to know to inquire at the jury voir dire or inform the court, of the possibility that a member of the jury pool is familiar with the lawsuit because of your posting, and the answers your question produced.
The general business concept involved in flipping distressed property usually requires the investor to move in and move out as quickly as possible with as little expense incurred before placing the property back on the market and making a profit on the flip. At a trial your uncle may face inquiry into his business practices and his attention to detail relating to improving and making the property safe.
Flipping a property may be a dangerous enterprise when the new owner, like your uncle, encounters tenants at the premises.
You pointed out that your uncle claimed he could have made the repair and did not do so. The injured tenant's attorney will argue that your uncle decided to save the money and the little time needed to make the repair because minor repairs are an annoyance to a property flipper. The attorney may argue that your uncle's pursuit of the best resale price at the least cost to him for improvement of the property lead him to make a decision to not make an easy and simple repair that may have caused an injury. The lawyer may argue that your uncle acted in a manner where he may be liable for damages by reason of gross negligence. Your uncle's insurer may decline to cover the loss if they decide your uncle acted in a grossly negligent manner.
You did not say if your uncle's testimony was made at a deposition or at a trial. If at a deposition, your uncle's attorney will encourage a rapid settlement. If at the trial it is way to late to inquire about this matter.
The fact that the defective condition is also marked as a violation of the code is a further aggravating factor for your uncle's insurance, for the injured tenant to exploit, and for the judge after conclusion of the testimony when presenting his instructions to the jury.
