California Partner Prevails on Appeal in HOA Toxic Mold Dispute

Los Angeles-area Partner Daniel Ip recently prevailed on appeal in the Court of Appeal of the State of California, First Appellate District on behalf of our homeowner’s association (HOA) and property management company clients in a case involving a breach of covenants, conditions and restrictions (CC&Rs), water intrusion and alleged toxic mold.

In their original suit, Plaintiff, a third-floor condominium owner, alleged water leaks and toxic mold in her unit caused personal injuries, mental distress, loss of use and property damage, claiming our HOA and property management defendants failed to maintain the roof despite known pooling issues. Before trial, the defense filed a cross-claim and offered to settle, which plaintiff declined. At trial, our partner, Daniel Ip, successfully raised alternative causes for Plaintiff’s symptoms with expert testimony showing the roof did not leak and that mold resulted from Plaintiff’s steam shower. The defense’s mold expert also educated the jury on mold basics, investigation, remediation and the role of Plaintiff’s personal items in mold exposure. The jury ultimately ruled in favor of our clients and Plaintiff subsequently appealed to the California Court of Appeal, First District.

During the appellate hearing, Litchfield Cavo Partner Daniel Ip argued that the appellate standard of review warranted affirmance of the trial court’s exclusion of Plaintiff’s evidence. Daniel Ip also highlighted the jury’s findings that Plaintiff breached the contract and that our property management client did not cause the alleged harm. Due to these findings, the excluded evidence would not have altered the outcome of the suit under the Harmless Error test.

In April 2026, the Appellate Court agreed with Daniel Ip’s arguments, which not only affirmed the judgment of the trial court, but also affirmed the trial court’s granting of our motion for attorneys’ fees and costs, in addition to affirming our HOA client’s cross-complaint for injunctive relief and damages.

Daniel Ip defends clients in premises liability cases and homeowner’s association disputes, and handles housing and habitability matters. He also focuses his practice on civil litigation matters such as personal injury and wrongful death claims.