Management companies operate facilities under contract with the licensed owner, controlling staffing, budgets, policies, and personnel. Claims allege direct negligence in exercising that control rather than vicarious liability.
The management agreement defines the scope of control.
Alternative Names:
Manager Liability, Operator Liability
Why it Matters?
The management agreement is the central document because it establishes what the manager controlled, and managers frequently hold decision-making authority over precisely the staffing and budget matters at issue. Where the agreement gives the manager authority over hiring, staffing levels, and expenditures, the direct negligence theory follows straightforwardly. Managers also frequently carry insurance the licensed operator lacks.
Frequently Confused with
Related terms
Frequently asked questions
What establishes management company liability?
Why target the management company?
