Can a property management company face punitive damages when a contractor it hires causes injury? It’s certainly possible, but in Marichal v. Malu One, LLC, Case No. 2023-014346-CA-01 (Miami-Dade Cir. Ct. June 4, 2025), a Miami-Dade Circuit Court answered ‘no’ where the manager did not direct or control the contractor’s actions and had no reason to foresee the harm.
This case underscores the high threshold for punitive damages in Florida and provides valuable lessons for property managers and landlords who use independent contractors for maintenance, repairs, and cleanouts.
The Incident: A Bed Frame Falls, A Lawsuit Follows
Midtown Realty Group, LLC managed a condominium unit owned by Malu One, LLC. After a tenant vacated the unit in poor condition, Midtown hired an independent contractor, Remodelaciones IDR, Inc., to remove furniture and perform repairs so the unit could be rented again. During the cleanout, the contractor dropped a bed frame from the second-floor balcony, allegedly striking a pedestrian below.
The injured person sued Midtown, the owner, and the contractor. Later, the plaintiff moved to add punitive damages against Midtown, arguing the company had a reckless pattern of using unlicensed contractors and showed conscious disregard for public safety. The court rejected that claim.
Court’s Decision: Why Punitive Damages Were Denied
Judge Migna Sanchez-Llorens denied the plaintiff’s motion to add punitive damages, finding no reasonable evidentiary basis for such a claim under F.S. §768.72. The court emphasized that Midtown did not direct or control the contractor’s work, had no prior incidents in over 100 prior jobs, and there was no evidence of licensing violations or management participation in any misconduct. Punitive damages are reserved for intentional or grossly negligent conduct akin to criminal manslaughter — not ordinary negligence or poor judgment.
The High Bar for Punitive Damages in Florida Law
To pursue punitive damages in Florida, the plaintiff must make a reasonable evidentiary showing that the defendant engaged in intentional misconduct or gross negligence. For a business entity, punitive damages require proof that a managing agent — an owner, officer, or executive — condoned or participated in such conduct. Florida courts, including Valladares v. Bank of America Corp., 197 So. 3d 1 (Fla. 2016), citing Como Oil Co., Inc. v. O’Loughlin, 466 So.2d 1061, 1062 (Fla.1985), compare this level of culpability to criminal manslaughter.
Practical Landlord And Property Management Lessons
Negligence is Not Enough
Florida courts have long emphasized that punitive damages are not meant to compensate but to punish. Therefore, they are reserved only for the most outrageous or malicious conduct. Ordinary negligence, poor oversight, or even repeated mistakes are not enough. The plaintiff must show that the defendant acted with a conscious disregard or indifference to human safety — something approaching intentional wrongdoing.
In Marichal, the plaintiff could not show that Midtown Realty acted with any awareness of danger. The company had no reason to believe the contractor would drop heavy furniture from a balcony, and nothing suggested prior unsafe behavior. The mere fact that an injury occurred did not convert negligence into gross negligence.
Illustration:
Suppose a property manager forgets to replace a light bulb in a stairwell, and a tenant trips in the dark. That’s simple negligence. However, if the manager knew the bulb had been out for months, was warned multiple times about tenants falling, and refused to fix it to save money, that gives the tenant a better argument of gross negligence.
Practice Tip:
Document every repair request, inspection, and communication about potential hazards. Showing that you responded promptly and reasonably can help defend a claim that you acted recklessly or willfully ignored safety risks.
Independent Contractor Relationships Matter
Florida law generally shields property managers and owners from liability for the acts of independent contractors if the property manager does not control the manner and means of the contractor’s work. Midtown’s protection in this case stemmed from that relationship: the contractor, not the manager, made the unsafe decision to drop the bed frame.
Key Legal Principle:
Under Florida law, the more control a property manager exerts over the contractor’s methods, the more likely the contractor will be deemed an “employee,” which increases potential liability. If you merely assign the job and set expectations — without dictating how it must be done — the law usually treats the contractor as independent.
Practice Tips:
- Use a written independent contractor agreement that clearly defines scope, independence, and safety obligations.
- Require the contractor to provide proof of insurance, proper licensing, and compliance with OSHA safety standards.
- Avoid supervising or instructing the contractor’s workers directly. Instead, inspect results and enforce contract terms, not work methods.
- Require contractors to indemnify the property owner and manager for any injury caused by their negligence.
Illustration:
If a manager tells a contractor, “Throw the trash off the balcony to save time,” that direction likely exposes the manager to liability. But if the contractor independently chooses to do that — against clear safety policies — liability is far less likely to attach.
Document Contractor History and Due Diligence
One of Midtown Realty’s strongest defenses was its long, positive history with the contractor. The company had hired the same firm more than 100 times without a single safety issue. That record helped show that Midtown exercised reasonable diligence and judgment, not reckless disregard.
Practice Tip:
Maintain a Contractor Due Diligence File for each vendor you use. Include the following important items:
- Business license and insurance certificates (updated annually).
- A copy of the signed contractor agreement.
- Notes on past jobs, completion quality, and any complaints.
- Copies of inspection reports, photos, or correspondence showing satisfactory work.
When a claim arises, these records demonstrate that you acted as a prudent and responsible property manager, not as someone indifferent to safety or regulation.
Illustration:
If a property manager can show that the same vendor completed dozens of similar cleanouts safely, it rebuts any claim that continuing to use that vendor was reckless or grossly negligent.
Know When Licensing is Required
The plaintiff in Marichal alleged that Midtown knowingly hired “unlicensed contractors” for construction work. But the evidence showed that the job — removing abandoned furniture and performing light wall repairs — did not require a licensed contractor. Florida’s contractor licensing law (F.S. ch. 489) applies mainly to construction, structural, mechanical, electrical, or plumbing work, not to minor cosmetic or cleanout tasks.
Practice Tips:
- Review Florida Statutes ch. 489 before hiring vendors.
- When work involves building, electrical, HVAC, or plumbing systems, confirm the contractor’s license through the DBPR database.
- For non-licensed activities like painting, debris removal, or carpet replacement, note in your records why licensing was not required.
- Require each contractor to sign a certification confirming their compliance with licensing and insurance laws.
Illustration:
If you hire a handyman to install new drywall or replace tile, that may not require a state license. But hiring someone to install electrical wiring or air conditioning ducts does. Keeping written proof that you checked licensing requirements protects against later allegations of negligence or “knowing” violations.
Managing Agent Liability
To impose punitive damages on a business, Florida law requires proof that a managing agent (someone with ultimate decision-making authority, such as an owner, president, or corporate officer) participated in or knowingly condoned the misconduct. Mid-level managers, assistants, or maintenance coordinators do not qualify.
In Marichal, the plaintiff failed to show that anyone with such authority at Midtown Realty was even aware of the contractor’s specific actions. The employee identified in discovery, a vice president of investor relations, was not an owner or officer and did not direct the contractor’s work.
Practice Tips:
- Identify who qualifies as a “managing agent” within your organization. Provide those individuals with clear risk management policies.
- Maintain documentation showing that upper management emphasizes safety, licensing, and legal compliance.
- Conduct annual reviews of contractor policies and confirm that management supports a “safety-first” culture.
Illustration:
If a company president instructs staff to “hire whoever is cheapest, even if unlicensed,” that could open the door to punitive damages. But if a property coordinator fails to double-check a license, that is ordinary negligence, not corporate recklessness.
Maintain Insurance and Indemnity Protection
Even if punitive damages are denied, negligence claims can still result in significant liability. Midtown avoided punitive exposure, but the case reminds landlords and property managers that accidents involving contractors can still lead to lawsuits and high defense costs.
Practice Tips:
- Require contractors to name both the owner and property manager as additional insureds on their general liability policies.
- Include an indemnity clause requiring the contractor to defend and hold harmless the owner and manager for any claim caused by the contractor’s negligence or misconduct.
- Keep proof of the contractor’s insurance and confirm that policies remain in force throughout the job.
- Consider maintaining an umbrella liability policy or professional liability coverage for your management company.
Illustration:
If a contractor’s employee injures a pedestrian and the contractor’s policy denies coverage, your own insurance may be the next line of defense. Having written indemnity and insurance documentation can make the difference between full coverage and personal exposure.
Avoid Knee-Jerk Blame Assignments
After an accident, emotions run high. But rash statements, especially those admitting fault or implying prior knowledge of unsafe practices, can be used as evidence of “conscious disregard.”
Practice Tips:
- Document the facts objectively.
- Avoid speculation or self-blame when speaking with tenants, witnesses, or adjusters.
- Report the incident to your insurer immediately and allow your attorney to handle communications.
- Preserve physical evidence, photographs, and witness names.
Illustration:
A manager saying, “I knew that contractor was careless,” could later be used as evidence that management tolerated risk. A safer statement is: “We are investigating the incident and will cooperate fully.”
Court Gatekeeping Is Strict
F.S. §768.72 requires courts to act as gatekeepers before allowing a punitive damages claim. Judges must evaluate whether there is sufficient evidence, not just allegations. This safeguard protects defendants from the stigma and expense of defending against baseless punitive claims.
In Marichal, the court reviewed both sides’ affidavits and found no factual support for gross negligence or intentional misconduct. The plaintiff’s mere accusations about unlicensed contractors were not enough.
Practice Tips:
- Keep internal records organized so your counsel can quickly produce proof of safety practices, contractor selection, and lack of prior incidents.
- Treat every maintenance or contractor incident as a potential future claim: document early, thoroughly, and factually.
Why Florida Courts Act as Gatekeepers Against Baseless Claims
Marichal v. Malu One, LLC offers reassurance to responsible landlords and property managers: Florida law does not punish accidents outside your control. Punitive damages are reserved for deliberate or reckless acts endangering human life. Good documentation, careful contractor selection, and proactive safety management remain your strongest defense.