Colorado HOA bankrupted after $1.4M verdict alleging toxic mold
A condominium association in Parker has been forced into bankruptcy due to a $1.4 million court ruling after causing severe mold issues inside a woman’s townhome and neglecting her pleas for help for years.
Described as a “dangerous nightmare she cannot escape” by Judge Robert Lung in a September verdict, Kristina Corcoran’s once-idyllic home in The Highlands at Stonegate has turned into a health hazard.
The community, consisting of 446 condos constructed between 2004 and 2006, is managed by a condo association and M&M Property Management, a local company based in Parker.
Among the residents is Kristina Corcoran, 55, who used to lead an active lifestyle but is now severely limited in her activities due to the mold-infested conditions in her home.
Purchasing her two-story townhome in 2015, Corcoran began experiencing water issues by 2017. Inadequate waterproofing, poor grading work, a malfunctioning drain, and holes in the veneer were identified as the main causes, as noted by Judge Lung. Despite numerous complaints, the HOA failed to address the issues until Corcoran filed a lawsuit in 2022, only exacerbating the problems.
With rainwater seeping through the roof and an uncapped fireplace flue, the situation escalated. Mold infestation led to health problems for Corcoran, including blurred vision, infections, pain, and cognitive issues, forcing her to discard many of her belongings.
Due to the toxic mold, one-third of Corcoran’s home is inaccessible, and she is unable to move out due to financial constraints. Lung’s verdict mandated The Highlands at Stonegate North Condominium Association to pay $1.4 million to Corcoran, with additional attorney fees pending calculation.
As a result, the condo association filed for Chapter 11 bankruptcy to protect its assets and continue operating. While Corcoran has yet to receive payment, $1.2 million of the funds are frozen from the association’s accounts.
The condo association anticipates additional costs of $300,000 for Corcoran’s legal team, surpassing their available funds. The insurance companies are expected to cover the judgment, but the timeline is uncertain.
Residents, like Meredith Norton and Joshua Michener, expressed frustration over the lack of transparency and poor decision-making leading to the community’s current predicament. They call for accountability and a change in leadership to address the ongoing issues.
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