SECURITY IN REAL ESTATE & MIXED USE PROPERTIES

Transcription

1 4th Annual Willis Real Estate, Hotel and Gaming Symposium SECURITY IN REAL ESTATE & MIXED USE PROPERTIES ISSUES AND CLAIMS Date: September 16, 2015

2 Sherlock Holmes I think you know me well enough, Watson, to understand that I am by no means a nervous man. At the same time it is stupidity rather than courage to refuse to recognize danger when it is close upon you. you know me well enough, Watson, to understand that I am by no means a nervous man. At the same time it is The Final Problem, December 1893 rather than courage to refuse to recognize danger when it is close upon you. The Final Problem, December, th Annual Real Estate, Hotel and Gaming Symposium 1

3 Headlines 4 th Annual Real Estate, Hotel and Gaming Symposium

4 Security Risks Property Protection Emergency Response Plans Violence in the Workplace Negligence Operational & Reputational Damage 4 th Annual Real Estate, Hotel and Gaming Symposium

5 What Have You Done To Prepare Yourself? Operationally Organizationally Legally 4 th Annual Real Estate, Hotel and Gaming Symposium

6 Finding$ of Fault Parking lot Murder Case Settled for $1.6 Million: A waitress was attacked and murdered in the parking lot of the motel where she worked during this 1997 incident. Her family sued the motel owner and the management company, claiming that security was inadequate. Specifically, the plaintiffs pointed out that only one security officer was retained to patrol several properties covering 240 acres and that the sole light for the parking lot had not been operating for months before the murder. Mall Abduction Case Settled for $2.6 Million: The husband of a woman killed in an abortive abduction and robbery in Northern Virginia has recovered $2.6 million from settlements with both the mall where she was abducted and a convenience store where she was forced to try to get money from an ATM. The husband claimed both business were liable for failing to prevent criminal actions by two would-be-robbers in the 2008 incident. The lawsuit labeled the mall a magnet for criminal activity. $102.7 Million Awarded in Florida Negligent Security Case: A cruise ship waiter was paralyzed from the waist down after being shot by a would-be-carjacker as he sat waiting in his car for his friend outside of a Miami club during this 2002 incident. Plaintiffs attorney argued that the property owner of the strip mall where the club was located was liable because it failed to keep the parking lot safe for customers. Plaintiffs attorney further argued the property owner had turned a blind eye to years of violence. In the seven years prior to the shooting 26 violent crimes had been reported on the property. During the trial the property owner admitted it had never spent a single dollar on security or safety. 4 th Annual Real Estate, Hotel and Gaming Symposium

7 Security Risk Mitigation Practices Assess Analyze Build Partnerships Train & Educate Review & Adjust 4 th Annual Real Estate, Hotel and Gaming Symposium

8 This is The Wrong Risk Management Approach! 4 th Annual Real Estate, Hotel and Gaming Symposium

9 PREMISES LIABILITY In The Context of Third Party Crime

10 WHAT ARE WE TALKING ABOUT? Liability for violent attacks, by a third party, which take place on your property.

11 ELEMENTS OF A CLAIM Elements are the same as any other negligence claim: DUTY BREACH CAUSATION DAMAGES And, like any other negligence claim, duty hinges on foreseeability.

12 WHAT PROPERTY OWNERS / MANAGERS NEED TO BE WORRIED? Any business is at risk Most of the cases we see include: Apartments Hotels Parking Lots/Garages Retail Establishments Office Buildings Bars/Restaurants Casinos

13 TYPICALLY INCLUDE Intentional Criminal Act Random Targeted Prior Crimes Serious Injury or Death Challenging Testimony Regarding Property s Safety

14 WHY WE ARE SEEING MORE PREMISES LIABILITY CASES Crimes Against Persons/Business Occur Daily Exposure Is High Severe Injuries Punitive Damages Potential Security Is NEVER ENOUGH Plaintiff s Lawyer s Dream Preparation Trial Big Bang for the Buck

15 TWO CASE STUDIES

16 WALMART PARKING LOT OVERVIEW ABDUCTION SHOOTING Hudson Video

17 JUSUPOVIC / KURJAK CASE

18 OVERVIEW Hudson Video

19 OVERVIEW Hudson Video

20 OVERVIEW Hudson Video

21 OVERVIEW Hudson Video

22 JUSUPOVIC/KURJAK PLAINTIFF THEMES High Crime Neighborhood Significant Prior Crimes on Property Recent Crime Spree Security Should be Increased No Crime Notices to Tenants Issues with Security Company

23 JUSUPOVIC/KURJAK DEFENSE THEMES Assailant Could Not Be Deterred 8 Hour Random Security Patrol Was Reasonable Contractual Defense/No Provision of Security Complex Could Not Afford 24 Hour Security

24 PREMISES LIABILITY Third Party Crime Presented by Rick Sager