Days before a scheduled hearing in its Chapter 7 bankruptcy case, co-living operator Common was sued by a former resident who claims the company housed him with an accused serial killer.
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The lawsuit, filed by William Castagna in Los Angeles Superior Court Wednesday, says Common breached its duty to him by knowingly placing him with a dangerous roommate and ignoring his requests to be moved to another unit.
The roommate was eventually charged in connection with four murders, after which Common offered to relocate Castagna, according to the suit, as reported by Business Insider.
"This is a case about a co-living real estate company that willfully disregarded its most fundamental role — to secure safe homes for its paying consumers," the lawsuit says.
Castagna complained to Common that the roommate, Jerrid Powell, put him in fear for his life, with the suit listing a variety of strange and threatening behaviors.
Powell allegedly threatened to assault Castagna, acted erratically and refused to stop playing loud videos of goats in the middle of the night. In the most extreme case, Castagna alleges that Powell abused a dog inside the apartment — an assertion that Common said was untrue when Castagna reported the incident.
Powell made claims that he was the owner of BMW and Nike and that he was God on the August 2023 day that Castagna moved in, according to the suit. He also owed $18K in back rent to Common, the lawsuit says.
Powell in 2019 won a $700K settlement with the city of Santa Monica over an incident in which a police patrol vehicle reportedly ran over him on the beach.
He was arrested and charged in relation to the murders on Dec. 4, 2023. Powell was charged with following a man to his home, shooting him dead and robbing him, along with the fatal shootings of three homeless men sleeping outside.
The murders occurred over a four-day stretch in late November 2023, and police briefly handcuffed Castagna when they raided his home to arrest Powell, at which point Common offered to provide alternative housing for Castagna.
Carrie Goldberg, founder of the Brooklyn-based law firm C.A. Goldberg, is representing Castagna in the suit, which seeks a jury trial and unspecified damages.
Common quickly became one of the largest co-living operators in the U.S., expanding its portfolio to 7,000 units from 2020 to 2022 through acquisitions of competitors like Habyt.
But by 2024, the company was facing increased pressure from high interest rates and tightening margins from growing operating costs. The firm declared Chapter 7 bankruptcy, announcing its intentions to close shop and sell off assets to repay between $10M and $50M in debt to creditors. A hearing is scheduled for Jan. 21.
Outpost Club, a New York-based co-living and management firm, took over seven of Common’s properties in June.
Powell has pleaded not guilty to the murders and has been held without bail, according to BI.
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