Evictions may be tied to mold woes

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Evictions may be tied to mold woes

D.A. wants to know if lawyers were trying to skirt problem

Pamela J. Podger, Chronicle Staff Writer Friday, May 3, 2002

Sonoma -- The Sonoma County district attorney's office is investigating

whether a law firm that handled mass evictions of hundreds of families in

Sacramento and Santa was trying to avoid dealing with mold problems in

the renters' houses, prosecutors said.

Sonoma County District Attorney Mullins said his office would like

to know whether the Honolulu law firm that represented billionaire landlord

Genshiro Kawamoto of Tokyo knew about mold problems, manipulated test

results for the spores or kicked out tenants for complaining.

" It is a very serious matter that is worthy of investigation, " Mullins said.

" There could be a civil liability for knowingly concealing a dangerous

condition. "

The Alston Hunt Floyd & Ing law firm started the evictions shortly after

tenants in Sacramento complained of mold in homes built a decade ago by

Kawamoto, said Dani Jo Handell, a deputy district attorney in Mullins'

office.

" We have great circumstantial evidence that this Honolulu law firm's

behavior, timing and tactics on sales of the Sacramento area homes is

because they didn't want to deal with the mold issue and wanted to limit any

liability, " Handell said.

Under California law, Handell said, lawyers cannot knowingly deceive tenants

about health and safety issues.

Sacramento County prosecutors also have begun a preliminary inquiry, said

Albert Locher, an assistant chief deputy district attorney.

Carol Asai-Sato, an attorney at the firm that dealt with Kawamoto's property

managers in Northern California and who has acted as the firm's media

contact, did not return calls seeking comment.

, a San Francisco lawyer who represents Kawamoto, said there

was no indication of toxic mold in the Santa homes. He said Kawamoto

had not retained him for the Sacramento area, and the landlord's

representative there could not be reached.

Renters in about 420 of Kawamoto's homes in the Sacramento suburbs of Citrus

Heights, Orangevale, Antelope and Rocklin were thrown into upheaval when

30-day eviction notices were posted on their doors Feb. 8. Tenants in 149

homes in southwest Santa received similar notices a week later.

Kawamoto has said he wanted to sell the properties and reinvest his money,

but he declined to say more. After a public outcry and a flurry of legal and

legislative reactions, Kawamoto allowed tenants to stay until midsummer.

Citrus Heights tenants had alerted local building inspectors about problems,

resulting in violations in 33 homes -- mainly for water intrusion problems

that foster mold. Tests on a southwest Santa home by a tenant's lawyer

found elevated levels of mold, and results from other homes are expected

soon.

" I believe it is more than a coincidence that Mr. Kawamoto made a decision

to evict everyone one week after the Sacramento tenants brought the mold

issues to the public, " Handell said.

She said Asai-Sato had sent an e-mail in September to Kawamoto's property

manager in Sacramento with instructions to air out a rental home before a

mold test.

In other e-mails from Asai-Sato, property managers were told to limit

liability by patching moldy carpets even though it cost more than replacing

the entire carpet. Handell said a Citrus Heights tenant who documented her

mold problems had had her rent raised.

Mold spores multiply rapidly in homes with water and moisture problems such

as leaky roofs or ill-fitting windows. Experts say one in five people are

sensitive to mold spores, which can trigger allergy attacks, asthma or other

respiratory ailments.

Mold has become such a financial liability that the nation's largest

property and casualty insurer, State Farm Insurance, recently cited it as

one reason for refusing to issue homeowners coverage to new customers in

California.

" If it is toxic, it has to be removed like asbestos with guys in jump suits

and respirators, " said Dave ez, assistant community development

director in Santa . " It can be very expensive and time-consuming. "

Asked whether mold problems had prompted Kawamoto decision to sell his

Sacramento properties, Century 21 Select broker Jacuzzi, who is

marketing 236 homes, said, " We don't have any indication either way on

that. "

About 35 Sacramento-area renters have contacted lawyers for a possible

medical injury lawsuit against Kawamoto.

One of them, Rhonda Warner, 32, of Citrus Heights, reported mold and other

problems to city housing inspectors Feb. 1, and she got an eviction notice

Feb. 9.

" My wholehearted opinion is this is retaliatory eviction because of the mold

and all of the complaints, " Warner said.

E-mail Pamela J. Podger at ppodger@....