My company has been inundated with frivolous lawsuits and governmental complaints. We own a property management company and really try to do good things. We work with the VA homeless veterans program, mental health services, youth homeless shelter, and United way to help people in need find clean, safe, and affordable housing. This helps us fill low rent units that would otherwise be filled with dirtbags and drugdealers. We really go out of our way to make our company's presence a positive for the city.
The challenge is that these people are for the most part full blown sidewalkers and when they don't get what they want, they sue. Or in one case we're dealing with, complain to the commission for human rights. This one is complaining that we're racist because we won't turn up her heat and it's only because she's of a particular race. (The reality is that her unit is 85 degrees, she's mentally ill, and to top it off my maintenance guy who's telling me her heat works fine is of the same race!!) I've even got a State senators chief of staff suing me because I charged them less than $60 from their security deposit!!
Here's my question: What is a good big picture strategy as a company to stop these BS lawsuits and complaints BEFORE they happen. Yes, we're an LLC. Yes, I have a bullet proof lease drawn up by an attorney. Yes, we work on building relationships with the tenants so they like us. But how do I make it so terrifying to sue me they never try. I've even gone to these organizations and told them that our relationship with them was in jeopardy if they weren't willing to back us up when this stuff happens. There's a lot out there in regards to insurance and asset protection that helps AFTER the suit, but what are some ideas for stopping them before lawyers get involved.
Idea #1. Take the Wal-Mart strategy and NEVER settle. Fight everything tooth and nail till word gets around that we are not to be F*cked with. You sue us? We countersue for more. Pretty soon the lawsuits go away.
Idea #2. We stop helping people all together. I send a letter and tell these organizations that we will no longer be taking risks with their clients, we're very sorry, but we are a small company and can't handle the legal costs. Then we dump all our low end properties back into the arms of the slum lord type operations here in town and just say F-'em.
Idea #3. Stay the course and just insure the hell out of ourselves. Forward anyone to our attorney(s) and eat the cost but let the attorneys deal with the stress.
EDIT: For clarification. I'm not nearly as worried about losing money as I am about the stress and loss of time/productivity that comes with these suits & complaints
The challenge is that these people are for the most part full blown sidewalkers and when they don't get what they want, they sue. Or in one case we're dealing with, complain to the commission for human rights. This one is complaining that we're racist because we won't turn up her heat and it's only because she's of a particular race. (The reality is that her unit is 85 degrees, she's mentally ill, and to top it off my maintenance guy who's telling me her heat works fine is of the same race!!) I've even got a State senators chief of staff suing me because I charged them less than $60 from their security deposit!!
Here's my question: What is a good big picture strategy as a company to stop these BS lawsuits and complaints BEFORE they happen. Yes, we're an LLC. Yes, I have a bullet proof lease drawn up by an attorney. Yes, we work on building relationships with the tenants so they like us. But how do I make it so terrifying to sue me they never try. I've even gone to these organizations and told them that our relationship with them was in jeopardy if they weren't willing to back us up when this stuff happens. There's a lot out there in regards to insurance and asset protection that helps AFTER the suit, but what are some ideas for stopping them before lawyers get involved.
Idea #1. Take the Wal-Mart strategy and NEVER settle. Fight everything tooth and nail till word gets around that we are not to be F*cked with. You sue us? We countersue for more. Pretty soon the lawsuits go away.
Idea #2. We stop helping people all together. I send a letter and tell these organizations that we will no longer be taking risks with their clients, we're very sorry, but we are a small company and can't handle the legal costs. Then we dump all our low end properties back into the arms of the slum lord type operations here in town and just say F-'em.
Idea #3. Stay the course and just insure the hell out of ourselves. Forward anyone to our attorney(s) and eat the cost but let the attorneys deal with the stress.
EDIT: For clarification. I'm not nearly as worried about losing money as I am about the stress and loss of time/productivity that comes with these suits & complaints
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