Job Journal sues REIT over toxic mold controversy
Sacramento Business Journal
Pacific Gulf Properties, a Newport Beach real estate investment trust, was sued last week by California Job Journal, a Sacramento newspaper publishing business. The lawsuit centers on toxic mold contamination of office space at Sacramento Commerce Park, owned by Pacific Gulf Properties.
Currently, Pacific Gulf is reported to be in negotiations with the California Public Employees' Retirement System to sell Sacramento Commerce Park as part of a $929 million deal to divest itself of all of its industrial holdings. Pacific Gulf owns, operates and manages industrial and office properties throughout California and the Pacific Northwest.
The lawsuit alleges that Pacific Gulf engaged in "unfair business practices" by performing inadequate repairs to the property without building permits and in violation of city building codes. It allegedly leased commercial office space that suffered from chronic roof and plumbing leaks, resulting in the growth of toxic mold. And the suit accuses Pacific Gulf of running untrue and misleading advertising to tenants.
California Job Journal's problems started in November 1999, when Pacific Gulf refused to make timely repairs to a ruptured plumbing pipe, which resulted in flooding of its offices at 1800 Tribute Road, Sacramento. Shortly thereafter, 26 of the Job Journal's 30 employees allegedly experienced mold-related health problems, including spontaneous nose bleeds, intestinal distress, sinus and lung infections, migraine headaches, skin rashes and chronic flu-like symptoms. The Job Journal was forced to evacuate its offices and production facility on Dec. 31 last year, according to the suit, only to be moved into another Pacific Gulf property that turned out to have a history of chronic leaks and was also contaminated with toxic mold.
Approximately two-dozen current and former Job Journal employees are in the process of filing separate personal injury lawsuits against Pacific Gulf as well.
California Job Journal and its injured employees are all represented by Alexander Robertson of Knopfler & Robertson in Woodland Hills.
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