Legal Question in Real Estate Law in California

Lawsuite by tenant for mold

My tenant left, his choice, due to mold. I responded to all repairs within 1-2 days. He had a mold report done from 3 samples, damp carpet pad, and 2 tape lifts he sent by mail, to a laboratory and it showed moderate spores. I had air testing done and it showed moderate spores. I have all e-mail correspondance regarding repairs. He wanted to be reimbursed for his expenses for $6,900.00, but would not sign a release for future damages. I told him ''No'' to the demand without a release. That was 6 weeks ago. He hired an attorney and now wants $10,000.00 with a signed release. I have insurance, but they do not cover mold. I told him ''No'' to the $10,000.00 demand and so I now expect a lawsuite. What can he sue me for? I have full insurance coverage in Millions. He states his wife is ill due to mold. They lived there for 3 years and I did repairs for mold at their request over the past 3 years. I have several high end properties. Should I put them in a corportation? Would that protect me from lawsuites? Questions's: What can he sue me for? What if my Insurance Company will not represent me? What does he have to prove to a Court of Law? lET ME KNOW.

Thanks.


Asked on 5/10/06, 1:49 pm

1 Answer from Attorneys
Andrew Magwood Andrew A. Magwood Attorney at Law

Re: Lawsuite by tenant for mold

Incorporating could be an effective way to reduce the liability of one of your properties vis a vis a liability sustained by another. It must be done properly to make sure that no argument can be made to "pierce the corporate shield." That would limit the liability of one of the corporations to the assets of that corporation - i.e., if there is a large loss sustained by that corporation, all the assets in that corporation are subject to satisfying the loss.

I would speculate, based on the facts you stated, that he would have a bodily injury claim, maybe a constructive eviction claim, maybe he even will claim damage to his property. Possibly he could throw in a breach of contract claim.

If you are sued and your insurance company will not defend you, you should hire an attorney who does both defense work and insurance coverage to handle the matter. If they do defend you under a "reservation of rights" you should hire an attorney who does insurance coverage work to make sure that your rights under the policy are protected.

The basics of a bodily injury or property damage claim is that the plaintiff has to show that (a) you did something you were not supposed to do or failed to do something that you had a legal obligation to do, (b) because of your acts or inaction he was harmed and � he has damages.

I handle both defense work and insurance coverage issue and would be happy to discuss this matter with you.

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Answered on 5/10/06, 2:37 pm


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