Supreme Court Sides With Virginia Landlord in Toxic Mold Lawsuit

The U.S. Supreme Court ruled against Virginia renters who claimed they were sickened by toxic mold in their apartment, in a decision that clarifies where personal injury cases should be heard.

The issue is significant in the debate over large jury awards in state courts.

Writing for a unanimous court, Justice Ruth Bader Ginsburg said an appeals court was wrong to insist that a Virginia subsidiary of the apartment manager, Texas-based Lincoln Property Co., should share responsibility in defending the lawsuit.

“The potential liability of other parties was a matter plaintiffs’ counsel might have assiduously explored” through further investigation, Ginsburg wrote.

Under federal rules, a defendant has a right to “remove” a case from state to federal court when the two parties are citizens of different states and the claimed damages exceed $75,000.

Christophe and Juanita Roche sued Lincoln Property in Virginia state court over exposure to toxic mold in their Fairfax County apartment. The company sought transfer of the case to federal court, where it was dismissed. When the Roches asked the trial court to send the case back to state court the judge refused and they appealed.