Source: https://www.berkleysp.com/

An apartment resident filed a housing discrimination complaint against a property manager with the city’s Human Relations Commission  (HRC) alleging wrongful eviction in violation of Title VIII of the Civil Rights Act of  1968. The resident was repeatedly late in making rent payments in violation of the lease terms. The property manager provided multiple proper notices to the resident indicating a violation of the lease’s payment terms.

When the property manager commenced lease termination and eviction proceedings in accordance with the lease, the resident was still  permitted to remain in the apartment and catch up on rent payments. Notice of non-renewal of the lease was properly issued but the resident refused to vacate the premises. The property manager received a favorable judgment in regard to the eviction proceeding, but the  claimant nonetheless filed a complaint with the HRC.

While the HRC action was pending, the property manager paused the eviction process and offered to forgo eviction proceedings if the  resident paid overdue rent and dropped the HRC complaint, but the resident did not respond. Ultimately, the HRC complaint was dismissed due to a finding of no reasonable cause.

While there was no liability, Berkley Service Professionals aided this policyholder by providing counsel from an attorney. The property  manager paid the $6,000 legal cost which was within their deductible.

Lessons learned: Having an insurance carrier that will partner with their policyholder to steer them through a claim minefield is invaluable.  Following proper procedures and having documentation to corroborate actions is the best defense to claims—especially baseless ones.