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Carroll Management Group LLC v. A Carpet Paint LLC

The property management company had a duty to disclose its agency relationship with the complex owner to the vendor performing work at the complex in order to avoid liability for the payment of invoices for that work, and because the management company failed to disclose its agency status, it was liable for the expenses.

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After its invoices for work at an apartment complex went unpaid, A Carpet Paint, LLC A Carpet filed a suit on account against both the complex’s property manager, Carroll Management Group, LLC Carroll, and the complex’s owner, Hidden Village Associates, LLC Hidden Village. A Carpet moved for summary judgment against Carroll, contending, inter alia, that Carroll never disclosed its agency relationship with Hidden Village and, therefore, was liable for the full amount of the unpaid invoices. The trial court granted partial summary judgment to A Carpet, finding that Carroll had a duty to disclose the existence of its agency relationship to A Carpet in order to avoid liability and Carroll failed to disclose that it was serving as Hidden Village’s agent prior to December 20, 2012, when it sent A Carpet a check listing Hidden Village as the payor.1

On appeal, Carroll contends that the trial court erred in granting partial summary judgment because there is a genuine issue of material fact as to whether A Carpet had actual knowledge prior to December 20, 2012 that Hidden Village owned the complex. As set forth below, well established law provides that Carroll had a duty to disclose its agency in order to avoid liability; A Carpet, on the other hand, had no affirmative duty to investigate the possibility of Carroll being an agent; and the undisputed evidence shows that Carroll did not disclose its agency status prior to December 20, 2012. Accordingly, we affirm the trial court’s partial grant of summary judgment to A Carpet.

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