California Verdicts

Plaintiff(s):

61 residents of LifeStyle Properties

Plaintiff Attorney(s):

James C. Allen;
Endeman, Lincoln, Turek & Heater LLP;
San Diego,
CA,
for
61 residents of LifeStyle Properties ■ David J. Semelsberger;
Endeman, Lincoln, Turek & Heater LLP;
San Diego,
CA,
for
61 residents of LifeStyle Properties

Plaintiff Expert(s):

Bryan Kimball;

Electricity;
San Diego,
CA called by
James C. Allen, David J. Semelsberger ■ Thomas Newsom;
P.E., C.E.G.;
Civil;
San Diego,
CA called by
James C. Allen, David J. Semelsberger

Defendant(s):

MHC Financing Limited Partnership

Defense Attorney(s):

Clarke B. Holland;
LHB Pacific Law Partners LLP;
Emeryville,
CA,
for
MHC Financing Limited Partnership ■ Brendan J. Fogarty;
LHB Pacific Law Partners LLP;
Emeryville,
CA,
for
MHC Financing Limited Partnership ■ Andrew P. Collier;
LHB Pacific Law Partners LLP;
Emeryville,
CA,
for
MHC Financing Limited Partnership

Defendant Expert(s):

Chris McGoey;
Security/Premises Liability;
Los Angeles,
CA called by
Clarke B. Holland, Brendan J. Fogarty, Andrew P. Collier ■ Lloyd Bracewell;
Civil;
Oakland,
CA called by
Clarke B. Holland, Brendan J. Fogarty, Andrew P. Collier ■ Walter Lane;
Electricity;
Riverside,
CA called by
Clarke B. Holland, Brendan J. Fogarty, Andrew P. Collier ■ Gregory Applegate;
Trees;
Tustin,
CA called by
Clarke B. Holland, Brendan J. Fogarty, Andrew P. Collier ■ Stephen Rottenborn;
Ecology;
Los Gatos,
CA called by
Clarke B. Holland, Brendan J. Fogarty, Andrew P. Collier

In 1997, plaintiff residents of a San Jose mobile home park, called California Hawaiian Mobile Estates, learned that Equity LifeStyle Properties Inc., a real estate investment trust in Chicago and the largest mobile home property owner in North America, attained ownership of the mobile home park. However, the residents claimed that despite collecting rent, Equity LifeStyle failed to maintain the property and left it in disrepair. In April 2009, numerous residents of California Hawaiian Mobile Estates sued MHC Financing Limited Partnership, which was sued as MHC Operating Limited Partnership and also known as Equity LifeStyle Properties Inc. The residents alleged that the defendant was negligent in the repair and maintenance of the mobile home park and that the defendant’s actions constituted a breach of contract and nuisance. Several residents were let out of the case, while others were added to the complaint. The matter ultimately went to trial on the claims of 61 residents of the San Jose mobile home park. Plaintiffs’ counsel contended that even though Equity LifeStyle collected rent totaling over $4 million annually from the low-income and elderly residents, only $250,000 was spent on repairs. Counsel also contended that by 2005, drug and gang activity occurred in the park, the fences were collapsing and the pool was closed by the health department. Plaintiffs’ counsel argued that in 2005, a new manager was put in place who tried to make repairs to the property, but that upper management would not release the necessary funds to cover the costs. Thus, counsel contended that the residents ultimately decided to file suit in April 2009, after water valves froze, and water and electrical outages became a daily and weekly occurrence. In regard to the breach of contract claim, plaintiffs’ counsel argued that Equity LifeStyle failed to provide physical improvements to the common facilities and maintain the area in good working order and condition, as required by the rental agreements and the California Mobilehome Residency Law. In addition, the plaintiffs’ electrical and civil engineering experts testified about the dangerous condition of the electrical system, the causes of sewage problems and how there had been no preventative maintenance done to either the electrical or sewer system. Defense counsel argued that the mobile home park was always properly maintained and that it was the recipient of a community of the year award for 2012.

Sixty-one residents of California Hawaiian Mobile Estates claimed that they suffered grief, humiliation, anxiety, discomfort, annoyance, inconvenience and mental suffering as a result of the mobile home park’s disrepair. Thus, the 61 residents sought recovery of damages for their emotional distress. They also sought recovery of economic damages for the overpayment of rent, and the loss of use and enjoyment of their homes.

The jury found that MHC Financing Limited Partnership, also known as Equity LifeStyle Properties Inc., failed to properly maintain the mobile home park. It determined that the damages suffered by the 61 residents of California Hawaiian Mobile Estates totaled $111,081,833, including $15.3 million in compensatory damages and $95.8 million in punitive damages.

Judge:

Maureen A. Folan

Trial Length:

36
 days

Trial Deliberations:

7
 days

This report is based on information that was provided by plaintiffs’ counsel. Defense counsel did not respond to the reporter’s phone calls.