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CONFIDENTIAL

Jun. 21, 2005

Real Property
Breach of Implied Warranty
Intentional Infliction of Emotional Distress

Confidential

Settlement –  $392,500

Court

Orange Superior


Attorneys

Plaintiff

William M. Paoli
(Paoli & Purdy, PC)

Court B. Purdy
(Paoli & Purdy, PC)


Defendant

Jeffrey L. Milam

James M. McKanna

Edward R. Leonard
(Tyson & Mendes LLP)


Experts

Plaintiff

John T. Chiu
(medical)

Andrew Puccetti Ph.D., CIH
(technical)

Joseph W. DeCarlo
(technical)

Defendant

Sherwin Gillman
(medical)

Facts

In 2000, 48-year-old Joanne Miller moved into the Palm Garden Apartments in Fullerton with her 22-year-old son, Ryan Miller, and five-year-old daughter, Allison Miller. Miller's five-year-old niece, Haley Smith, was also a frequent visitor at the apartment. Three months after moving in, the Millers began experiencing frequent instances of water intrusion that resulted in mold growth, dust mites and a musty odor. At that time, the Millers' health began to get progressively worse. In 2003, the Millers moved out of the apartment complex and sued the owner, Palm Garden Apartments Limited Partnership, and the property manager, Apartment Management Consultants LLC. The Millers and Smith alleged causes of action for negligence, private nuisance, breach of implied warrant of habitability, implied covenant of quiet enjoyment and intentional infliction of emotional distress.

Settlement Discussions

Apartment Management Consultants contributed $17,500 to the settlement and Palm Garden Apartments Limited Partnership paid the rest.

Specials in Evidence

$5,000 (Joanne Miller); $1,500 (Ryan Miller); $7,500 (Allison Miller); $7,000 (Hayley Smith) $50,000 (Joanne Miller); $75,000 (Ryan Miller); $100,000 (Allison Miller); $150,000 (Hayley Smith)

Damages

The plaintiffs claimed unspecified damages for loss of use, property loss and punitive damages.

Injuries

The plaintiffs claimed they developed respiratory problems that included allergic sensitization, rhinitis and asthma as well as other symptoms. They were treated with allergy medications and were monitored for their conditions during their tenancy. They also claimed that they suffered from emotional distress.

Result

After mediation with retired Judge Russell Bostrom, the plaintiffs settled for $392,500. Apartment Management Consultants contributed $17,500 to the settlement and Palm Garden Apartments Limited Partnership paid the rest.


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