When a public housing agency (PHA) faced a $600,000 lawsuit for alleged Legionella exposure, HAI Group®’s appointed defense counsel successfully defended the case before it went to trial. HAI Group’s claims team provided critical case management support throughout the litigation and covered the PHA’s legal expenses.
The case was dismissed after the court granted the defense’s motion for summary judgment, which argued that there was no evidence of Legionella at the PHA’s property.
In December 2021, a tenant filed a lawsuit against an HAI Group-insured PHA, claiming to have suffered significant respiratory ailments due to exposure to Legionella bacteria at the property. The tenant alleged that the PHA failed to maintain an adequate water management program, which he blamed for symptoms including a persistent cough, shortness of breath, lung failure, and respiratory distress.
Legionella is a type of bacteria that can cause Legionnaires’ disease, a serious form of pneumonia, and a milder illness known as Pontiac fever.
HAI Group Regional Manager Janelle Howard collaborated with the defense counsel to mount an effective legal strategy. The defense emphasized that Legionella bacteria are commonly found in many environments, making it speculative to conclude that the tenant’s exposure occurred at the PHA property.
During deposition, the tenant admitted to visiting various locations and purchasing fresh produce—which can occasionally carry Legionella—during the relevant timeframe. Notably, no other residents in the complex reported similar symptoms, further weakening the claim that the PHA’s water system was the source of his illness.
Defense counsel also argued that the tenant failed to present any evidence proving Legionella was present at the property, nor did he show that the PHA neglected to follow any standard or required testing protocols.
HAI Group’s defense counsel filed a motion for summary judgment, asserting no evidence of Legionella at the PHA premises. The court agreed and dismissed the case.
“While motions for summary judgment are less common today, they remain an important tool for efficiently resolving cases when appropriate,” notes Howard.
Early and open communication between the insured, HAI Group’s claims management team, and defense counsel is the key to successful outcomes. The PHA’s policy with HAI Group covered its legal expenses.
“Without the right coverage, the insured could have faced significant out-of-pocket costs—or might not have been able to mount such an effective defense at all,” Howard said.
This case highlights the importance of having the proper insurance protections and a proactive claims management team.
If you’re a current HAI Group policyholder, consult your account executive to review your coverage and ensure your agency is fully protected. If yHAI Group does not currently insure youand want to learn more about how we can help your agency manage risk and protect your properties, contact our business development team today.
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