Insurance company fighting payment of $62 million judgment against TEH Realty affiliates

An insurer for affiliates of a former Kansas City-area landlord has asked a federal judge…

An insurer for affiliates of a former Kansas City-area landlord has asked a federal judge to say the insurance company should not have to pay any part of a $62 million judgment. That historic judgment entered in Jackson County court last year cited unsafe living conditions in apartments owned and managed by an affiliate of TEH Realty.The North American Capacity Insurance company filed an amended federal lawsuit earlier this week. The suit asks a judge to confirm it rescinded coverage of four insurance policies for affiliates of TEH Realty, citing the affiliates’ failure to notify the insurance company of apartment conditions and the potential for lawsuits. It also seeks to exclude tenants of the former Ruskin Place apartments from making claims for money against the insurance policy.Last year, those tenants won a judgment against Michael Fein and an affiliate of TEH Realty which owned and operated Ruskin Place apartments in south Kansas City. The original judgment was for roughly $52 million. But in December, a judge allowed attorneys fees of more than $20 million, half paid by the defendants. That brought the award to more than $62 million.Attorney Greg Leyh represents the tenants. Leyh said he believes the North American Capacity Insurance company, and others connected to TEH Realty, should have to pay, saying he would address the main legal concerns in court.“There are other insurance policies out there,” Leyh said. “And we’re investigating.”Leyh compared the saga of TEH Realty to a three-act play.“The judgment was act one,” he said. “We’re in act two. We’ll see how act three shakes out.”According to the Jackson County judgement last year, an affiliate of TEH Realty showed tenants nice apartments, then moved them into dangerous and filthy units, the judge found. One tenant said in the suit that she and her children had to sleep with the lights on to prevent roaches from crawling on their bodies.Others said that when they complained about inhabitable conditions in the complex, they were retaliated against with eviction proceedings and baseless legal actions.The judge found Fein specifically targeted lower-middle class housing units to attract cash flow.Estimating a net worth of $120 Million for TEH, the judge ordered Fein and his associates to pay up.TEH Realty’s managing partner Michael Fein is facing a federal grand jury indictment for wire fraud. His last known address is in Jerusalem, Israel.KMBC 9 Investigates texted Fein on Friday but did not hear back.An email to an attorney representing North American Capacity Insurance was not immediately returned.If you have tips about any former TEH properties, email [email protected]

An insurer for affiliates of a former Kansas City-area landlord has asked a federal judge to say the insurance company should not have to pay any part of a $62 million judgment. That historic judgment entered in Jackson County court last year cited unsafe living conditions in apartments owned and managed by an affiliate of TEH Realty.

The North American Capacity Insurance company filed an amended federal lawsuit earlier this week. The suit asks a judge to confirm it rescinded coverage of four insurance policies for affiliates of TEH Realty, citing the affiliates’ failure to notify the insurance company of apartment conditions and the potential for lawsuits. It also seeks to exclude tenants of the former Ruskin Place apartments from making claims for money against the insurance policy.

Last year, those tenants won a judgment against Michael Fein and an affiliate of TEH Realty which owned and operated Ruskin Place apartments in south Kansas City. The original judgment was for roughly $52 million. But in December, a judge allowed attorneys fees of more than $20 million, half paid by the defendants. That brought the award to more than $62 million.

Attorney Greg Leyh represents the tenants. Leyh said he believes the North American Capacity Insurance company, and others connected to TEH Realty, should have to pay, saying he would address the main legal concerns in court.

“There are other insurance policies out there,” Leyh said. “And we’re investigating.”

Leyh compared the saga of TEH Realty to a three-act play.

“The judgment was act one,” he said. “We’re in act two. We’ll see how act three shakes out.”

According to the Jackson County judgement last year, an affiliate of TEH Realty showed tenants nice apartments, then moved them into dangerous and filthy units, the judge found. One tenant said in the suit that she and her children had to sleep with the lights on to prevent roaches from crawling on their bodies.

Others said that when they complained about inhabitable conditions in the complex, they were retaliated against with eviction proceedings and baseless legal actions.

The judge found Fein specifically targeted lower-middle class housing units to attract cash flow.

Estimating a net worth of $120 Million for TEH, the judge ordered Fein and his associates to pay up.

TEH Realty’s managing partner Michael Fein is facing a federal grand jury indictment for wire fraud. His last known address is in Jerusalem, Israel.

KMBC 9 Investigates texted Fein on Friday but did not hear back.

An email to an attorney representing North American Capacity Insurance was not immediately returned.

If you have tips about any former TEH properties, email [email protected]