Case Background
Ken Houang, Shelley Houang, and their minor son, Liam, rented Unit 5 at 3101 S. Barrington Avenue, Los Angeles, from June 2021 to August 2022. The property was owned and managed by Rochelle H. Sterling, as trustee of the Sterling Family Trust, and Beverly Hills Properties, LLC. The apartment complex was a multi-unit rental held out to the public. Plaintiffs alleged that the property conditions rendered the unit unfit for human habitation.
Cause
The Plaintiffs claimed the apartment contained multiple hazards. They pointed to cockroach infestations, airborne roach feces, toxic mold, water leaks, water intrusion, unsanitary plumbing, and building code violations. They also cited broken cabinets, damaged carpeting, and holes in ceilings and walls. According to the complaint, Defendants knew or should have known of these conditions but failed to repair or warn. Despite notice and repeated repair requests, the owners continued to collect rent, allowing unsafe and unsanitary conditions to persist.
Injury
The unsafe apartment caused serious health problems for the family. They reported respiratory issues, toxic exposure, and emotional distress from living in unhealthy conditions. Plaintiffs described injuries that disrupted their daily lives, diminished their well-being, and caused persistent anxiety and depression. They claimed shock to the nervous system, humiliation, and embarrassment from enduring uninhabitable living conditions.
Damages
The Plaintiffs sought compensation for medical expenses, property damage, and loss of quiet enjoyment. They also claimed damages for emotional suffering, mental anguish, and loss of normal physical activity. They requested not less than $1.5 million in damages, along with interest, litigation expenses, and court costs.
Key Arguments and Proceedings
Legal Representation
Plaintiff(s): Ken Houang | Shelley Houang
Counsel for Plaintiffs: Gerald Ohn
Defendant(s): Beverly Hills Properties LLC | Rochelle Sterling as Trustee of the Sterling Family | Rochelle H. Sterling
Counsel for Defendants: Paul H. Burleigh | Gregory A. Garbacz
Expert Witness for Defendant: Allan Snyder
Claims
The lawsuit brought three causes of action. First, Plaintiffs alleged breach of the implied warranty of habitability, arguing the unit was unfit for living and violated California Civil Code §1941. Second, they claimed negligence, asserting the Defendants failed to exercise reasonable care in maintaining habitable conditions. Third, they alleged nuisance, contending the ongoing unsafe conditions interfered with their use and enjoyment of the apartment. Through these claims, Plaintiffs sought accountability for both physical and emotional harm.
Defense
In response to the complaint filed by Ken Houang, Shelley Houang, and minor Liam Kenneth Houang, Defendant Beverly Hills Properties LLC, represented by Klinedinst PC, filed an Answer and Demand for Jury Trial on December 27, 2022. The Defendant issued a general denial, rejecting all allegations and damages, and raised numerous affirmative defenses. This included failure to state a cause of action, statute of limitations, contributory negligence, intervening acts of others, open and obvious risks, lack of notice, trivial defect, assumption of risk, lack of causation, no damages, failure to mitigate, consent, release, estoppel, waiver, laches, offset, unclean hands, and reservation of rights to amend.
On January 23, 2023, Defendants Beverly Hills Properties LLC and Rochelle Sterling (individually and as trustee of the Sterling Family Trust) filed an Answer. This amended pleading reiterated the general denial and reasserted the same broad range of affirmative defenses, effectively seeking dismissal of the complaint with prejudice and recovery of costs. Both filings reflect a full defense strategy, disputing liability, causation, and damages, while also preserving multiple statutory and equitable defenses.
Jury Verdict
On December 20, 2024, a Los Angeles County jury returned a special verdict in favor of Plaintiffs Ken Houang, Shelley Houang, and minor Liam Houang against Defendants Rochelle H. Sterling, individually and as trustee of the Sterling Family Trust, and Beverly Hills Properties, LLC. The jury found both Defendants negligent and responsible for unsafe and uninhabitable conditions at the Plaintiffs’ apartment, which substantially caused their harm. Fault was apportioned 10% to Sterling, 20% to Beverly Hills Properties, and 10% to the plaintiffs, with the remainder allocated through damages. The jury awarded a total of $1,861,380 in damages, including non-economic damages to Liam and Ken Houang, as well as economic and non-economic damages to Shelley Houang, along with rental diminution.
Court Documents
Court documents are available for purchase upon request at [email protected]
