Facts

Plaintiffs are 87 individuals who at some point during a six year period, resided in the 24 apartments at Palisades Apartments. During this period, the tenants made numerous complaints about water damage, furniture damage and leaking plumbing to the management companies hired by Palisades Apartments. Plaintiffs filed a class action suit for fraud, concealment, intentional misrepresentation of material facts, negligent misrepresentation, breach of the implied warranty of habitability, and nuisance. The named defendants were: Palisades Apartments; its management company TWI; the owners of TWI, Christine Oberti and Betty Foster; and the two companies who built the apartments, JM Construction and Gary Mason, Inc., among others.

PLAINTIFF'S CONTENTIONS:
Plaintiffs claimed that TWI and the owners of the Palisades Apartments knowingly concealed the level of damage to the plumbing system and other water sources at the apartments in order to lessen maintenance costs. Any repair or maintenance done was minimal and insufficient to correct the growing mold problem, according to plaintiffs. They claimed Palisades misrepresented the structural soundness of the property when leasing units to new tenants and acted in a fraudulent manner when addressing tenant complaints. They claimed that the property managers and Palisades were negligent by repeatedly failing to address tenant complaints about recurring water problems, which constituted their intentional concealment of damage and mold in the apartment complex.

DEFENDANT'S CONTENTIONS:
Palisades and TWI claimed that the problem was a construction defect, which they had tried to address. They named numerous contractors who were hired to correct the defect and address tenant complaints. They claimed that they were making concerted efforts to remedy all of the tenant's complaints in an appropriate and timely manner. They alleged that some tenants were negligent by improperly maintaining their units. Further, they denied the existence of mold and denied that mold caused the plaintiffs ailments. They claimed that individual tenants decided to move out on their own.

JM Construction and Gary Mason Inc. both denied ever being told by Palisades or TWI that any defect existed, and denied the existence of any defect. They said TWI and Palisades had gutted and repaired many of the units before they were made party to the suit, which made it difficult for them to inspect the premises and make determinations regarding causation.

Damages

Plaintiffs claimed that water intrusion and mold damages plaintiff's belongings. Many claimed financial and emotional harm incurred when they found their concerns were not addressed. Many had moved out of the apartments.

Injuries

Plaintiffs claimed to have developed respiratory illnesses and increased amounts of ailments. They also alleged that their children also suffered from respiratory ailments and sinus infections as a result of mold.

Result

The parties settled for $1,440,000. The defendants agreed to an unspecified breakdown, proportionate to their respective responsibility. There was no admission of liability. Graham Concrete Construction's portion of the total settlement was $10,000.