Facts

The plaintiffs, 50 adults, and 20 minor children, were tenants in a low-income apartment in the Pico Union district in Los Angeles. They alleged that during their tenancy, the defendant owners negligently managed the building and consequently, cockroaches, mice, and substantial violations of local and state building codes afflicted the apartments. The property was cited by the Los Angeles Building Department for hundreds of code violations in August 2004.

CONTENTIONS:
The tenants alleged rodent and insect bites, allergies, rashes and other physical symptoms as well as emotional distress arising from the alleged inadequate security, which resulted in gang members loitering in the halls and parking lot, and harassment by management. The tenants sought damages for physical injury, emotional distress, and restitution of rent, property damage and statutory penalties pursuant to C.C.P. Section 1941.1.

The two landlords who owned the property during the relevant time accused each other of causing the habitability violations. Owner A was supposed to fully abate the violations before escrow closed in November 2004 and title transferred to Owner B. After escrow closed, the property was cited again by the Housing Department for the same violations. Owner B consequently claimed that abatement had not occurred and sued Owner A for fraud and indemnity in a separate lawsuit.

Result

The case settled for $800,000 after two mediations before the Hon. Robert Altman.