A ruling on a case recently heard by the Ohio Supreme Court could clarify when a brokerage may be held liable for its agents’ alleged misconduct.

The case involves Dayton, Ohio, brokerage Keller Williams Home Town Realty and its independent contractor agent Jamie Paliath, who represented California-based buyer Torri Auer on purchases of several multi-unit rentals in Dayton. Paliath and Auer had also formed a company, which purchased a separate 12-unit building elsewhere in Dayton. The units Auer purchased proved difficult to rent.

Auer, based on Paliath’s alleged misrepresentation about the rentability of the units, eventually sued the brokerage and Paliath in Montgomery County Common Pleas Court, which awarded Auer $135,000 from Home Town Realty and $135,200 from Paliath. The Ohio Second District Court of Appeals upheld the verdict, and Keller Williams Home Town Realty appealed to the Ohio Supreme Court.

Home Town’s lawyers argue that Paliath was not operating in the scope of her employment in the company because she participated in a competing company, and that the firm, even though it received commissions from the sale of the buildings Paliath coordinated, should not be liable because it had no knowledge of Paliath’s illicit activities.

Auer’s lawyers claim that Home Town didn’t properly train or oversee Paliath and therefore should be held liable.

Cleveland.com notes that it typically takes weeks or months for the Ohio Supreme Court to return a decision after it’s heard a case.

Source: Cleveland.com

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription