Chuck Liddell settles lawsuit over mold in an Atascadero home

August 27, 2019

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.


Mystic One hit the nail on the head. Buy a house from a semi-famous/probably comfortably well off (maybe) guy. “Get Pressured ” to take a home loan (because if they weren’t “Pressured”, Chuck would have probably given it to them for FREE. Or something. How else are you going to buy a house in CA, did they have cash?) Then, a water leak! $$$$$Cha-ching!!!!!!$$$$$$$$ How many payments did the make? Any? I’d say that chances are, they made less than 3, total, and were probably no money down, and they also appear to have walked away from it.



In over their heads and looking for a bail out from someone with $$ or insurance.

If it was really serious the award would have been significantly more.


Learned something new today. 1. I can somehow be ‘pressured’ to take out a home loan and 2. I don’t have to do my due diligence and hire an inspector when purchasing a home. My lack of due diligence means I can sue the previous owner over issues I didn’t want to uncover via an inspection.


Agreed. It’s also a way to get out from under a house you can’t afford I assume. I’m also shocked the poor kid (who’s totally fine by the way) only scored $7,000. In nine years that will pay for college books for one semester.


You forgot to say the home loan and school loans will also be forgiven since you were pressured to do so. 2020!!!!