Atlanta Office Wins Defense Verdict For Property Manager On Claims By Vendor, Cross-Claims By Property Owner

Atlanta, Ga. (December 18, 2023) – Atlanta Partner Adi Allushi and Associate Cecilia Walker recently secured a defense verdict for a national property management corporation on claims brought by a vendor and cross-claims lodged by the property owner. Lewis Brisbois’ client is a national corporation, over a century old, that managed over 140 properties with 40,000 units.

In 2019, the client entered the Georgia market managing three apartment complexes owned by a hedge fund in New York. The owner terminated without cause the client within six months, and several vendors – including the plaintiff, who was a remedial services provider – were not paid during the last few months and the transition period. The plaintiff sued the owner for the unpaid services, as well as an incorrect entity it believed to be the client. The owner cross-claimed against the client for fraudulent misrepresentations. Based on the misnomer statute, the court granted default judgment against the client.

We appeared at this stage, arguing default was improper because the misnomer doesn’t apply when you sue the wrong unaffiliated corporation. The court agreed and it granted an additional 90 days of discovery. The case proceeded to a two-day bench trial on October 26-27. At trial, we prevailed on all claims by the plaintiff and the fraud cross-claims by the owner of the three apartment complexes.