Tenant Suing Over Mold - Help!

[Jason Powell]

I bought a building 6 months ago with inherited tenants. Against my better judgment, I let one of the tenants stay and did not serve a no cause termination. The property inspector 6 months ago noted small spots of mold on some baseboard corners, and also noted that he could not find where the bathroom fan penetrated to the exterior.

Zoom forward 2 months - I routed the bathroom fan properly to the exterior (fixing the humidity issue). The tenant requested that they clean up any visible mold instead of myself or someone I hired.

One week ago, this tenant has come out of the woodwork wanting to sue me over continued mold growth (about 5 spots, the size of the palm of your hand). I have no reason to believe there is any moisture issue from the building itself (and I've had more than one contractor come out, two even that put moisture readers on the walls and ceilings with no abnormal results).

My question is, what steps should I take as a landlord? The guy pointed right in my face and told me he was going to sue me for everything I've got, take my building from me, and then burn it to the ground. I've got many more details to this lengthy story I could share, but would SO appreciate your knowledge and experience!