$695,000 Settlement for Three Huntington Beach Households in a Toxic Exposure and Habitability Case

In February 2026, Strongin, LLP reached a $695,000 settlement on behalf of three Huntington Beach households in a toxic exposure and habitability case against their former landlord and its property management company. The plaintiffs were represented by Kseniya Y. Stupak of Strongin, LLP.

BACKGROUND

The three households rented units at the same Huntington Beach apartment complex. One tenant had rented his unit since 2017. Another unit was home to a family with two young children. A third plaintiff was a former tenant who had since moved out of the complex.

Over a period of years, the tenants reported repeated leaks, water intrusion, and visible contamination in their units. Each household paid for its own independent laboratory testing, which reported elevated indoor spore levels and water-damage-associated mold, including Chaetomium and Stachybotrys, the mold commonly called black mold. According to court filings, the plaintiffs alleged that the property's owner and manager relied on untrained handymen to patch and paint over the affected areas rather than retaining licensed remediation professionals.

In January 2024, part of a bathroom wall in one of the units gave way while a young child was in the room, an event the plaintiffs pointed to as evidence of the conditions they said they had been reporting for years. Each household alleged that it incurred out-of-pocket relocation and testing costs while continuing to pay rent.

PLAINTIFFS' CONTENTIONS

The plaintiffs contended that the landlord and property manager had allowed long-standing leaks and water intrusion to persist and had chosen cosmetic repairs over addressing the underlying cause. They argued that these conditions fostered hazardous mold and microbial growth and rendered the units uninhabitable under California law, which requires landlords to maintain sound plumbing and effective waterproofing (Civ. Code, § 1941.1) and treats dampness and visible mold that threaten health as substandard conditions (Health & Saf. Code, § 17920.3).

The plaintiffs further contended that independent testing documented the conditions across the three units. In one unit, a laboratory reported 350,000 spores per square centimeter of Chaetomium in the bathroom, with later testing identifying Aspergillus, Penicillium, and Stachybotrys and moisture readings as high as 99 percent. In a second unit, testing reported black mold in the air of both bathrooms and behind the kitchen sink, and an inspector's report described the unit as uninhabitable. In the third unit, testing returned positive for Stachybotrys and Chaetomium, and a county health agency notified the landlord of the results.

Each household reported health effects that the plaintiffs attributed to the exposure, including respiratory symptoms, headaches, fatigue, and cognitive difficulties, and urine testing of two of the plaintiffs detected ochratoxin, a mycotoxin associated with molds found in their units. The plaintiffs also alleged that, after they reported the conditions, they received three-day notices they characterized as retaliatory.

DEFENSE POSITION

The defendants disputed the plaintiffs' allegations regarding the extent, cause, and health impact of the conditions, and contended that they had responded to tenant complaints.

THE LITIGATION

Strongin, LLP filed suit in Orange County Superior Court on September 5, 2023 against the property's owners and its management company. The complaint alleged breach of the implied warranty of habitability, nuisance, negligence, constructive eviction, premises liability, and intentional infliction of emotional distress, and later added a claim for fraud by concealment.

The case proceeded through written discovery, expert inspections, and depositions of current and former management staff. Trial was set for March 9, 2026.

THE SETTLEMENT

The matter did not reach trial. At a mandatory settlement conference in February 2026, the parties reached a global resolution of $695,000 for the three households.

“These families did everything tenants are supposed to do,” said Kseniya Y. Stupak, a partner at Strongin, LLP. “They reported the leaks. They paid for their own testing. They sent the results to management.”

Total Settlement: $695,000

CLAIMS

The case involved claims for breach of the implied warranty of habitability, nuisance, negligence, constructive eviction, premises liability, and intentional infliction of emotional distress, with a later claim for fraud by concealment, in Orange County, California.

ATTORNEYS FOR THE PLAINTIFFS

The plaintiffs were represented by Kseniya Y. Stupak and Eric B. Strongin of Strongin, LLP.

Disclaimer: This case result is provided for informational purposes only and does not guarantee a similar outcome in any future matter. Every case is different and depends on its specific facts, evidence, and applicable law.