Case details

Property defects not disclosed prior to lease signing: plaintiffs

SUMMARY

$485000

Amount

Mediated Settlement

Result type

Not present

Ruling
KEYWORDS
emotional distress, mental, psychological
FACTS
In March 2010, plaintiffs Garbis Chrikjian, Albert Chrikjian, Arseen Chrikjian, Leon Chrikjian and Zarih Chrikjian, brothers who own and operate several cigar stores in the Los Angeles area, entered into a commercial lease agreement with building owners Al Dickens, Dickens Property Management, B&D Burbank and B&D Investments, whereby the Chrikjians would take possession of the retail location for a period of five years. The Chrikjians were looking to expand their business when they found the Woodland Hills location, which was already an existing cigar store. Since the current store owner was looking to sell the business, the Chrikjians decided to purchase the store and enter into the commercial lease agreement with the building owners. During the first rains of the season, the Chrikjians experienced heavy rainwater infiltration, which caused damage to their inventory, and were encouraged by Dickens to make all the reasonable repairs necessary to prevent further water damage. As a result, the Chrikjians had the interior drywall removed in order to find the source of the leaks and have the drywall replaced. However, while removing the drywall, the Chrikjians claimed they discovered a serious mold problem. They also claimed they discovered the wood underneath the dry wall had substantial dry rot and termite infestation. The Chrikjian brothers sued Al Dickens, Dickens Property Management, B&D Burbank, and B&D Investments. The Chrikjians alleged that the defendants’ actions constituted negligence, fraud, concealment, and failure to disclose. The Chrikjians contended that the defendants knew of the existence of the mold, dry rot and termite infestation years before they signed the lease, but failed to disclose those facts to them. They also contended that after each subsequent rainfall, they suffered more water damage that destroyed their inventory and caused damage to their health. In addition, the Chrikjians contended that the water damage hindered their ability to develop the business due to unsightly repairs. The defendants contended that they told the Chrikjians about the mold, dry rot and termites before they signed the lease. They also contended that they took appropriate steps to repair the water infiltration, mold and termite problems., The Chrikjians claimed their business suffered as a result of the ongoing mold, dry rot and termite issues caused by the water infiltration. They also claimed the constant repairs did not create an environment that was conducive to customers, which caused profits to be significantly lower than that of their other locations, where customers would stay and enjoy cigars with wine. The Chrikjians alleged that they feared they would contract cancer, respiratory problems, and/or another illness because of their exposure to the unhealthy conditions in the store. They claimed that as a result, they saw various doctors to rule out any health problems. Thus, the Chrikjians sought recovery of $130,000 in lost profits, plus unspecified amounts for their emotional distress damages and punitive damages.
COURT
Superior Court of Los Angeles County, Los Angeles, CA

Recommended Experts

NEED HELP? TALK WITH AN EXPERT

Get a FREE consultation for your case