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Thread: Being sued by tenants for mold in rental house, advice?

  1. #1
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    Default Being sued by tenants for mold in rental house, advice?

    If anyone has experience defending themselves against lawsuit from tenants, please send me a pm.

    Suggestions for lawyers that specialize in this area greatly appreciated.

    event timeline of story:

    Nov 2, 2016 - showed house to couple young guys renting their first house, liked it and want to return with a dad as second opinion
    Nov 11, 2016 - showed house 2nd time, they brought a dad (he mentioned owning several houses and renting them out) along to help assess fit of renting house; they decided to take it, did walk through pre-rental inspection and signed a lease for term Nov 15, 2016 to June 30, 2017, rent being $1400/month
    Nov 15, 2016 - tenants took possession of house, there was a 3rd female tenant going to live there also, presumably with one of the guys
    Jan 20, 2017 - tenants texted to report dryer vent leaking, lint blowing out of it and high humidity in dryer area, he was afraid humidity might cause mold; mentioned his dad was going to come fix it with him
    - told him to save any receipts for parts and deduct it from rent payment
    Apr 12 - 2017 - visited house to assess extent of mold issue, mold appeared to be localized to 6" area along baseboard, on wall opposite bathroom; further exploration led to entire laminate floor of room being removed, fingers of mold in joints of baseboard, portion of wall (drywall and studs/plate)also had mold and were removed. All visible signs of mold removed.
    Apr 14 - tenants noted mold smell dissipating, dad visited and think there may be humidity issue remaining in bathroom
    Apr 20, 2017 - received noise complaint letter from city, excessive noise from garage occurred night of Apr 6
    Apr 21, 2017 - visited house again to paint mold kill paint on exposed concrete in affected room
    Apr 23, 2017 - asked if any mold smell remained, tenant replied: nothing significant
    Apr 24, 2017 - tenant reported small mold spot found on laundry room floor in closet, under vinyl roll flooring
    Apr 30, 2017 - visited house to assess laundry room mold, found approx. 2" circle of mold on concrete floor under vinyl, sprayed it with Concrobium Mold Control, propped vinyl up to allow airflow
    May 4, 2017 - offered to give portion of rent payment back as compensation for lack of use of basement (no mold smell remained in house, all areas of mold appeared to be remediated); tenant replied that upstairs they "haven't stopped using the premises in any way" and any reimbursement would only apply to the female tenant staying downstairs
    May 5, 2017 - tenants provided copy of a 3rd party mold assessment report dated May 4, 2017; several species of mold above Alberta Health limits; report advised to vacate premises
    May 7, 2017 - phone conversation with tenants, they plan to move out asap, want their rent back for May and damage deposit refunded in full
    May 8, 2017 - emt sent to tenants for $1867 (refund for: 1/3 Apr rent and full month of May rent payment)
    May 8, 2017 - I spoke with mold testing/remediation company, they noted that mold tests done post mold remediation, but before thorough top-to-bottom cleaning of entire house with bleach would be picking up residual mold spores from mold being disturbed; contacted tenants, offered for them to store possessions in garage, while house was: professionally cleaned, ducts cleaned, and 3rd party mold tests done again
    May 9, 2017 - tenants aid they'd prefer to find other rental accommodation, asked for damage deposit back; told them if the yard and upstairs were in clean condition would return deposit in full; agreed to meet May 17 for post rental inspection

    May 9, 2017 - female tenant texted me copy of the mold test invoice for $315
    May 10, 2017 - emt sent to tenant for $315
    May 17, 2017 - tenants were no-shows for post inspection; house left in poor condition, washing machine broken, bathroom, fridge, stove dirty, 20 bags of garbage, piles of cigarette butts in yard, garage bonus room floors sticky/dirty, no attempt made to return garage, upstairs or yard to pre-rental condition
    Jun 2, 2017 - emt sent to tenant for $1092 ($1400 damage refund less $308 for utilities used until end of Apr)
    Aug 15, 2017 - received letter from lawyer stating client is pursuing damages for amount of $25,000, if not paid in full within 10 days lawsuit for "significantly greater amount" to follow

    I've never tried to rent this house out as a slumlord. Anything broken I have it fixed right away. Always professionally cleaned prior to move in. The revenue is slightly less than carrying costs, so I try to keep costs down by doing repairs myself if I can.

    Don't feel its fair to pay them $25K, would rather take my chances with court/lawsuit.....unless there's no chance I'd win.

    Open to hearing your opinion on this.
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    Why did the mold get so bad? it could not be from a dryer vent hose leaking. that would require them to be running laundry almost 24/7

    And why didn't you go in to fix the issue right away, or also inspect the work that they had done.

    In hindsight I would have told them to stop using the dryer.

    It sounds like there is more to this story than whats being told, and it kinda sounds to me like they were growing "plants" in the home.

    Our climate is way to dry to support that kind of out of control mold growth, unless there is a constant water source.

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    Do you have insurance?

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    Rick's right, something sounds really fishy here for that must moisture to be building up. Is the dryer in a basement that had foundation leakage?

    I wish you best of luck with this but for future advice never let the tenant fix anything. I don't give a flying fuck how qualified they think they are, it's my house and I'll get someone who can warranty their work and parts.

    Hopefully you have records of conversations, photos etc in case this turns worse. What exactly are they suing $25,000? Confirmed health issues by a doctor stating directly from association of mold?!
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    Clarification, the mold was found in two rooms, under laminate floor of bedroom, and small spot under lino floor in laundry room. I have insurance, but I attempted to make claim for the mold damage, and its not covered due to slow water infiltration not being covered, only "sudden, accidental release" is insurable loss. Not sure what this means regarding being sued for something that is not insurable loss...?

    Damage claim is: they say I knew about preexisting mold, and was negligent in renting house out, and they have: vision damage, lack of energy (direct quote), weight loss, pain and suffereing, loss of clothing and furniture, hair loss....will report the full list form lawyer letter.

    I'm think it must be hard to prove any of those issues directly caused by mold exposure. You'd need before/after exams and causation?
    Last edited by cidley69; 08-16-2017 at 03:13 PM.
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    Best advice would be to get a lawyer....

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    I will talk to lawyer, just hoping someone can recommend good one for this specific type of situation. Or any landlords have dealt with being sued by tenants?
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    Quote Originally Posted by cidley69 View Post
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    Clarification, the mold was found in two rooms, under laminate floor of bedroom, and small spot under lino floor in laundry room. I have insurance, but I attempted to make claim for the mold damage, and its not covered due to slow water infiltration not being covered, only "sudden, accidental release" is insurable loss. Not sure what this means regarding being sued for something that is not insurable loss...?

    Damage claim is: they say I knew about preexisting mold, and was negligent in renting house out, and they have: vision damage, lack of energy (direct quote), weight loss, pain and suffereing, loss of clothing and furniture, hair loss....will report the full list form lawyer letter.

    I'm think it must be hard to prove any of those issues directly caused by mold exposure. You'd need before/after exams and causation?
    i'm not a doctor but I can assure you that that level of mould toxicity would show up in a blood test

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    May 8, 2017 - I spoke with mold testing/remediation company, they noted that mold tests done post mold remediation, but before thorough top-to-bottom cleaning of entire house with bleach would be picking up residual mold spores from mold being disturbed; contacted tenants, offered for them to store possessions in garage, while house was: professionally cleaned, ducts cleaned, and 3rd party mold tests done again
    What were the results of the 3rd party mould test results?

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    Counter sue them for not fixing the mold problem they were paid to do and for 25g for tenant pain and suffering?

    I think 2 options here; 1) lawyer up, law society of Alberta will hook you up with a lawyer name that will give a free consult and advice. 2) do it yourself and drag the ever loving shit out of it in court. If they're paying a lawyer I can't see it being less than 10g out of their pocket. They might just go away.

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    I'm with zhao- counter sue to scare them away. AS LONG as your paper trail lines up ( email, text, phone calls and notes you may have written down )

    If you end up talking it over before a judge BEFORE court make sure to go through all their paper work to see what things they actually have ( tests from doctors, loss of energy, bullshittery, etc )
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    you seem to have phenomenal notes and an easy paper trail the judge can follow from things. Ignore the 25k lawsuit as the tenants need to prove damages of 25k which seems impossible.

    You paid for everything, you attempted to fix everything. You have slummy tenants trying to take advantage of you. What you need to decide is... Is it cheaper to settle and get them out of your face or will you take them to court?

    When you counter sue and win you will win costs +5%. Worst case you lose the law suit and pay the damages what the tenants can prove.. which i doubt is much. Damage deposit and 1 months rent....

    You'll see any evidence in your mediation/pre trial. At the pre trial the judge will make a recommendation that you should listen to. It's at this point you settle or you realize youll win. You have nothing to lose by taking it to this step without a lawyer.

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    Thanks for all the replies. Gwill, that's the kind of info really great to hear. Will research the process and attempt to go it my own until discovery (does this term apply to lawsuit process?).

    House is insured by TD melonix, says in the policy being sued is covered by liability clauses. Insurance should provide counsel, going to call to discuss today.

    Side note, I googled the lawyers office that is on letterhead, on July 29, 2017 that lawyer was suspended by ab law society for 14 days, due to:

    "was found guilty of failing to properly supervise his staff and failing to conduct himself as a reasonable and prudent solicitor, which enabled his clients and others to achieve an improper purpose."

    Wonder if suspension might have been due to bringing forth frivolous lawsuits? Sounds like a schister.
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    Read up on lawsuit process. If/when they file a claim against me, my next step is to file a Dispute Note and/or Counter Claim.

    This is when I'd lay out facts to support my case and monetary costs.

    Anyone filed dispute note without using a lawyer?
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    Quote Originally Posted by cidley69 View Post
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    Aug 15, 2017 - received letter from lawyer stating client is pursuing damages for amount of $25,000, if not paid in full within 10 days lawsuit for "significantly greater amount" to follow
    .
    As stated I'd counter sue or follow this through to court. Anyone can have a threatening letter sent. It's a matter of following through with it. Remember Banjeree's lawyer's dropped him within a week after the threatening letter was sent.

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    You haven't been sued. They hired a lawyer to send a shakedown letter.

    The best advice is "be prepared", but currently, you haven't even had a suit filed against you. It's all crap. Ignore it and wait it out. If they are stupid enough to pay a lawyer $10k+ and try and claim $25k in damages, that's their problem.

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    Quote Originally Posted by cidley69 View Post
    This quote is hidden because you are ignoring this member. Show Quote
    Read up on lawsuit process. If/when they file a claim against me, my next step is to file a Dispute Note and/or Counter Claim.

    This is when I'd lay out facts to support my case and monetary costs.

    Anyone filed dispute note without using a lawyer?
    I've done small claims without a lawyer. Your dispute notes are for the judge and easy to write. Use simple point form disputing any allegations they make. When it comes to the mediation its a chance for the judge to hear out both sides anf ask questions.

    Wait for the evidence they are providing and you can make a better judgement call on how to move forward from there.

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    At what stage in process do I get to see their evidence?
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    you're insured right? obviously don't pay now as likely it won't be covered under the policy.

    Personally, I would ignore this. If you get served then you create a claim and pay your deductible on your policy. From that point, the insurance lawyer will take over and drag this out for 10 years.

    Should definitely check your policy to make sure you're covered.

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    Keep in mind that lawyers like this usually work on contingency. Most likely these guys haven't paid the lawyer anything and probably never will. Lawyer will take 30% of the winnings, and it's basically a speculative bet that he gets that. If at some point it looks like he isn't going to win, he will drop it and walk.

    On the defense side, however, you won't get a contingency option because there is no chance of a jackpot. You're paying billable hours.

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