Advocacy Update

OLYMPUS DIGITAL CAMERAWritten by Forrest Wall, CAE, Staff Vice President and Industry Relations

Supreme Court Decision Adverse To Rental Property Industry

At the end of July, the Michigan Supreme Court rendered a decision of importance to residential landlords. In the Bailey v. Schaaf case, the Court found that if a landlord is under notice of a specific situation occurring on the premises which would cause a reasonable person to recognize a risk of imminent harm to an identifiable invitee, the landlord has a duty to expedite the involvement of the police. In layman’s terms, if a landlord or its agent (such as a manager, maintenance professional, or security guard) is notified that there is an imminent threat posed to a person on the premises of the apartment community, the landlord has a duty to call the police. However, this duty does not extend to criminal acts within a particular unit. It is also important to note that the landlord has no duty to involve himself or his agents into a violent situation. Simply calling the police is the extent of the landlord’s obligation. If the landlord has this duty and does not call the police, the landlord can be held liable for the damages which follow should the threat escalate to actual violence. Special thanks to Matthew Miller of Swistak & Levine, P.C. for providing the summary information for this article.

Don’t Fall For “Corporate Records” Scam

The Michigan Department of Licensing and Regulatory Affairs (LARA) recently issued a release warning Michigan corporations against a non-governmental entity called “Corporate Records Service” trying to collect a $125 fee to prepare corporate records. The misleading compliance solicitation implies that Michigan requires corporations and limited liability companies to complete an Annual Corporate Records Form and is designed to look like an official document, but it is not. Corporations receiving this notice are advised to keep the notice, mailing envelope, and return envelope, and contact the U.S. Postal Inspections Service to report mail fraud by calling (877) 876-2455.

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