in the circuit court for the state of oregon for … · conditions in the common areas at the...

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MASS ACTION COMPLAINT – Page 1 of 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 IN THE CIRCUIT COURT FOR THE STATE OF OREGON FOR MULTNOMAH COUNTY MARK ALLISON ROBIN TOLBERT WESLEY APPLING JAMES MICHAEL STEPHEN ELLIOT MAURICE SMITH JOHN LONG Plaintiffs vs INCOME PROPERTY MANAGEMENT CORP. and DRENNAN PROPERTIES LLC and LEON DRENNAN and PAMELA DRENNAN and PENNIE NARVER Defendants Case No. MASS ACTION COMPLAINT ORS 90 Negligence Jury Trial Requested Amount in Controversy: $4,500,000 Not Subject to Mandatory Arbitration Filing Fee Authority: ORS 21.160(1)(d)

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Page 1: IN THE CIRCUIT COURT FOR THE STATE OF OREGON FOR … · conditions in the common areas at the Stewart Hotel included fire hazards, defective doors, defective windows, defective and

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IN THE CIRCUIT COURT FOR THE STATE OF OREGON

FOR MULTNOMAH COUNTY

MARK ALLISON ROBIN TOLBERT WESLEY APPLING JAMES MICHAEL STEPHEN ELLIOT MAURICE SMITH JOHN LONG Plaintiffs vs INCOME PROPERTY MANAGEMENT CORP. and DRENNAN PROPERTIES LLC and LEON DRENNAN and PAMELA DRENNAN and PENNIE NARVER Defendants

Case No. MASS ACTION COMPLAINT ORS 90 Negligence Jury Trial Requested Amount in Controversy: $4,500,000 Not Subject to Mandatory Arbitration Filing Fee Authority: ORS 21.160(1)(d)

Page 2: IN THE CIRCUIT COURT FOR THE STATE OF OREGON FOR … · conditions in the common areas at the Stewart Hotel included fire hazards, defective doors, defective windows, defective and

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1.

INTRODUCTION

The plaintiffs in this mass action lawsuit are low-income tenants at the

Stewart Hotel in downtown Portland. The defendants are the landlords who were

responsible to maintain the Stewart Hotel in a habitable condition. Over the past

two years the unhabitable conditions at the Stewart Hotel included fire hazards,

defective doors, defective windows, defective and leaky ceilings, holes in walls,

cockroach infestations, lack of heat, persistent and potentially dangerous mold,

broken washers and dryers, debris in common areas, bed bugs, and inadequate

plumbing.

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2.

FACTUAL ALLEGATIONS

On at least on occasion over the past two years defendant Income Property

Management Corp. worked as plaintiffs’ landlord in conjunction with at least one

other defendant as either an owner, lessor or sublessor of the Stewart Hotel, or was

otherwise authorized by an owner, lessor or sublessor to maintain or collect rent or

otherwise manage the premises or assist in operations at Stewart Hotel, or had oral

or written authority, either express or implied, to act for or on behalf of a landlord

at Stewart Hotel.

3.

On at least on occasion over the past two years defendant Income Property

Management Corp., either solely or in conjunction with at least one other defendant,

was responsible to maintain Stewart Hotel in a habitable condition.

4.

On at least on occasion over the past two years defendant Drennan Properties

LLC worked as plaintiffs’ landlord in conjunction with at least one other defendant

as either an owner, lessor or sublessor of the Stewart Hotel, or was otherwise

authorized by an owner, lessor or sublessor to maintain or collect rent or otherwise

manage the premises or assist in operations at Stewart Hotel, or had oral or written

authority, either express or implied, to act for or on behalf of a landlord at Stewart

Hotel.

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5.

On at least on occasion over the past two years Drennan Properties LLC,

either solely or in conjunction with at least one other defendant, was responsible to

maintain Stewart Hotel in a habitable condition.

6.

On at least on occasion over the past two years defendant Leon Drennan

worked as plaintiffs’ landlord in conjunction with at least one other defendant as

either an owner, lessor or sublessor of the Stewart Hotel, or was otherwise

authorized by an owner, lessor or sublessor to maintain or collect rent or otherwise

manage the premises or assist in operations at Stewart Hotel, or had oral or written

authority, either express or implied, to act for or on behalf of a landlord at Stewart

Hotel.

7.

On at least on occasion over the past two years defendant Leon Drennan,

either solely or in conjunction with at least one other defendant, was responsible to

maintain Stewart Hotel in a habitable condition.

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8.

On at least on occasion over the past two years defendant Pamela Drennan

worked as plaintiffs’ landlord in conjunction with at least one other defendant as

either an owner, lessor or sublessor of the Stewart Hotel, or was otherwise

authorized by an owner, lessor or sublessor to maintain or collect rent or otherwise

manage the premises or assist in operations at Stewart Hotel, or had oral or written

authority, either express or implied, to act for or on behalf of a landlord at Stewart

Hotel.

9.

On at least on occasion over the past two years defendant Pamela Drennan,

either solely or in conjunction with at least one other defendant, was responsible to

maintain Stewart Hotel in a habitable condition.

10.

On at least on occasion over the past two years defendant Pennie Narver

worked as plaintiffs’ landlord in conjunction with at least one other defendant as

either an owner, lessor or sublessor of the Stewart Hotel, or was otherwise

authorized by an owner, lessor or sublessor to maintain or collect rent or otherwise

manage the premises or assist in operations at Stewart Hotel, or had oral or written

authority, either express or implied, to act for or on behalf of a landlord at Stewart

Hotel.

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11.

On at least on occasion over the past two years defendant Pennie Narver,

either solely or in conjunction with at least one other defendant, was responsible to

maintain Stewart Hotel in a habitable condition.

12.

For each month of the past two years, plaintiffs experienced unhabitable

conditions in the common areas at the Stewart Hotel included fire hazards, defective

doors, defective windows, defective and leaky ceilings, holes in walls, cockroach

infestations, lack of heat, persistent and potentially dangerous mold, broken

washers and dryers, debris in common areas, bed bugs, and inadequate plumbing.

13.

For each month of the past two years, the unhabitable conditions in plaintiff

John Long’s unit 309 included lack of heat, cockroach infestations, bed bugs,

persistent and potentially dangerous mold, and defective windows.

14.

For each month of the past two years, the unhabitable conditions in plaintiff

Maurice Smith’s unit 306 included lack of heat, bed bugs, cracked ceilings, persistent

and potentially dangerous mold, and defective windows.

15.

For each month of the past two years, the unhabitable conditions in plaintiff

Wesley Appling’s unit 205 included lack of heat, bed bugs, and a defective and leaky

ceiling.

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16.

For each month of the past two years, the unhabitable conditions in plaintiff

Steven Elliot and James Michael’s unit 211 included lack of heat, bed bugs,

cockroach infestations, a defective and leaky ceiling, and a defective sink.

17.

For each month of the past two years, unhabitable conditions in plaintiff Mark

Allison and Robin Tolbert’s unit 214 included lack of heat, persistent and potentially

dangerous mold, a broken sink, brownish blackish water, defective walls, and bed

bugs.

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18.

CAUSES OF ACTION

Claim One – ORS 90.320

As alleged in this complaint, defendants violated ORS 90.320, causing

plaintiffs diminution in rental value and personal injuries consistent with bites

caused by bed bugs. Defendants knew or should have known that the unhabitable

conditions at the Stewart Hotel constituted noncompliance with ORS 90.320 because

defendants or their agents inspected the units prior to and during plaintiffs’ tenancy

and because defendants received various notices of violations from the city inspector

and because plaintiffs repeatedly requested repairs to the various habitability issues

described in this complaint. Under ORS 90.360, ORS 90.255, and ORS 20.190,

plaintiffs are entitled to money judgment against defendants for fair compensation

in an amount to be determined by the jury to be reasonable but not to exceed $7,200

per plaintiff for diminution in rental value and not to exceed $635,657 per plaintiff

for personal injuries, for a final money judgment not to exceed $4,500,000, plus

reimbursed fees, costs, and disbursements. Plaintiffs reserve the right to amend this

complaint to adjust the request for compensation as well as to add additional

defendants and new claims, including a claim for punitive damages, as new

information is learned in discovery.

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19.

Claim Two – Negligence

As the plaintiffs’ landlords and property possessors and owners, defendants

had a duty to maintain the Stewart Hotel in a safe condition for the tenants that

lived there, including plaintiffs. Defendants’ legal duties also included giving

adequate warnings of any unreasonable risks of harm to plaintiffs and obviating any

unreasonably dangerous conditions at the Stewart Hotel. As landlords and property

owners, defendants also have specific legal duties proscribed by ORS 90 and the

Portland City Code. Given these special legal duties, defendants were negligent in

one or more of the following acts and omissions: as alleged in this complaint, over

the past two years plaintiffs experienced personal injuries consistent with bites

caused by bed bugs at the Stewart Hotel. Plaintiffs’ injuries, including both physical

injuries and severe emotional distress, resulting from the bed bug infestation and

bed bug bites, were substantially caused by, and a foreseeable result of, defendants’

failure to adequately warn plaintiffs about, to protect plaintiffs from, and to obviate

the unreasonable risks of harm and dangerous conditions presented by the bed bug

infestation at the Stewart Hotel. Defendants knew or should have known of the bed

bug infestation because defendants or their agents inspected the units prior to and

during plaintiffs’ tenancy and because defendants received various notices of

violations from the city inspector and because plaintiffs and other tenants requested

that defendants obviate the bed bug infestation. In addition to the bed bug

infestation described above, over the past two years plaintiffs experienced many

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other materially unhabitable, unsafe, and unreasonably dangerous conditions and

unreasonable risks of harm at the Stewart Hotel, including fire hazards, defective

doors, defective windows, defective and leaky ceilings, holes in walls, cockroach

infestations, lack of heat, persistent and potentially dangerous mold, broken

washers and dryers, debris in common areas, and inadequate plumbing. Defendants

knew or should have known of these unsafe unhabitable, unsafe, and unreasonably

dangerous conditions and unreasonable risks of harm because defendants or their

agents inspected the units prior to and during plaintiffs’ tenancy and because

defendants received various notices of violations from the city inspector and because

plaintiffs and other tenants requested that defendants make these repairs. As a

foreseeable result of defendants’ failure to maintain the Stewart Hotel in a safe and

habitable condition, their failure to adequately warn plaintiffs of, their failure to

protect plaintiffs from these unreasonable risks of harm, and their failure to

adequately obviate these unreasonably dangerous conditions, plaintiffs suffered

severe and persistent emotional distress. As a result of defendants’ negligence acts

and omissions set forth above, plaintiffs are entitled to money judgment against

defendants for fair compensation in an amount to be determined by the jury to be

reasonable but not to exceed $635,657 per plaintiff for physical injuries and

emotional distress, plus reimbursed fees, costs, and disbursements. Plaintiffs

reserve the right to amend this complaint to adjust the request for compensation as

well as to add additional defendants and new claims, including a claim for punitive

damages, as new information is learned in discovery.

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20.

REQUEST FOR A JURY TRIAL

Plaintiffs respectfully request a trial by jury.

21.

PRAYER FOR RELIEF

Plaintiffs respectfully request judgment against defendants as sought in this

complaint, maximum interest, and any other relief this Court may determine is fair

and proper.

February 11, 2020

RESPECTFULLY FILED, s/ Michael Fuller Michael Fuller, OSB No. 09357 Lead Trial Attorney for Plaintiffs OlsenDaines US Bancorp Tower 111 SW 5th Ave., Suite 3150 Portland, Oregon 97204 [email protected] Direct 503-222-2000

Kevin Mehrens, OSB No. 074589 Law Office of Kevin A Mehrens

[email protected] Kelly Jones, OSB No. 074217 The Law Office of Kelly D. Jones [email protected] Laura Donaldson, OSB No. 022930 Kuni Donaldson LLP [email protected]