Chuck Liddell settles lawsuit over allegedly moldy Atascadero home

Chuck Liddell

An Atascadero couple has reached a $70,000 settlement over a home they purchased from former champion wrestler Chuck Liddell because of a mold infestation. [Tribune]

Liddell sold the Via Colonia Court home to Kenneth and Hayley Smith in 2015. The Smiths signed a purchase agreement in July 2015, but later gave notice of their intent to vacate due to financial issues.

Before leaving the home, the couple discovered a preexisting water leak in a laundry room that shared a wall with their 9-year-old daughter’s bedroom, according to a lawsuit filed in San Luis Obispo Superior Court in Dec. 2016. The suit alleges the Smith’s daughter slept and played for months in a room riddled with mold.

The girl suffered serious medical problems and was under the care of several doctors.The Smiths hired a mold specialist who found the girl’s room had a high concentration of spores, according to the suit.

In the lawsuit, the Smiths alleged breach of contract, breach of implied habitability, negligence, fraudulent concealment trespass and other damages. The suit named Liddell, real estate agent Dustin Ward and San Diego-based mortgage company 4 USA Loans Inc. 

The Smiths were pressured to take out a loan to purchase the home, according to the lawsuit.

On Friday, a judge finalized the settlement in the case, which will result in Kenneth and Hayley Smith each receiving $31,500 and their daughter receiving $7,000. Lisa Toke, the Smiths’ attorney, said the couple’s daughter is now doing well.