Los Angeles Family Secures $22.6 Million Settlement for Child Allegedly Brain-Damaged by Toxic Mold

On October 13, 2005, in Los Angeles, the largest settlement in the country for a mold case involving a single-family home-- $22.6 million-was reached. The Gorman family claimed toxic mold grew in their home as a result of mold on framing studs that had been improperly stored by Crenshaw Lumber Co. of Gardena, CA. As an alleged result of exposure to toxic mold, Kellen Gorman, now five years old, functions as a 1 ½ year-old, in need of 24-hour care. The Gorman's complaint named Crenshaw Lumber Co., who agreed to pay $13 million of the settlement, along with 16 other defendants.

The Gorman family suffered respiratory and sinus problems shortly after moving into a new $1.9 million home in Manhattan Beach, in 1999. They stayed in the home for two years before moving because of deteriorating health problems, including brain lesions and cysts suffered by Kellen Gorman, now age 5, which were revealed in an MRI taken when the child was 3-1/2. An MRI taken when the child was 1-1/2 was normal. Other family members complained of numerous health problems, including cognitive difficulties, such as memory loss, which are often associated with fungal exposure.¹

According to the family's attorney, Brian D. Witzer, the record settlement was reached the day after Los Angeles Superior Court Judge Victoria G. Chaney barred the wood supplier from using 10 of its 17 experts, including a toxicologist and a microbiologist. This exclusion was allegedly due to the defense missing the deadline for designating witnesses and attempting to cover-up their mistake by backdating documents. Judge Chaney referred the issue to the State Bar for investigation.

Crenshaw Lumber Co. said in a statement that it believes jurors would have "completely vindicated" them had the judge not excluded the witnesses.

Source: Associated Press

¹Michaels, $13 million from lumberyard brings Calif. mold settlement to $22.6 million. (Nov. 7, 2005) http://www.mold-help.org/content/view/691/ [as of Nov. 14, 2005].

'Katrina Cough' Reminds Hurricane Victims of Importance of Mold Clean-Up

In the wake of Hurricanes Katrina and Rita, the immense flooding has resulted in the widespread colonization of mold in commercial and residential structures. Mold and dust circulating after the hurricanes are believed to have caused an allergic reaction in many Louisiana and Mississippi coast residents, referred to as "Katrina Cough." This condition, described as "very prevalent" by New Orleans ear, nose and throat doctor Dennis Carey, is marked by symptoms including a cough, scratchy eyes, and a sore throat.²

"Katrina Cough" is likely to be only one aspect of the first wave of mold-related health effects that will be felt in the region as a result of devastating hurricanes. A corresponding wave of increased mold litigation is expected as a result. Currently, there are no specific Occupational Safety & Health Administration (OSHA) Standards or Directives in regard to molds and fungi. The General Duty Clause, Section 5(a)(1) of the OSH Act, provides broad protection, requiring employers to "furnish each of his employees employment and a place of employment which are free from recognized hazards that are causing or are likely to cause death or serious physical harm to his employees." In addition, 26 states have OSHA-approved State Plans and have adopted their own standards and enforcement policies. It is noteworthy, however, that neither Louisiana, Mississippi, Alabama, Florida, nor Texas-those places hardest hit by the 2005 hurricane season-are among those 26 states.

In most areas damaged by Hurricanes Katrina and Rita, it was impossible to follow the U.S. Environmental Protection Agency's (EPA) recommendation to dry out water-damaged buildings within 24 to 48 hours to prevent mold from colonizing and spreading. OSHA and the EPA have recommended safety guidelines to follow in remediating mold in commercial and residential structures. In light of the lack of statutory or regulatory guidance in limiting liability for mold remediation efforts, OSHA and EPA recommendations should be followed to help meet the General Duty Clause standard of care.

For more information regarding the safe clean-up of mold, visit the following websites:

http://www.epa.gov/mold/index.html http://www.osha.gov/OshDoc/fungi.html

Sources:

www.osha.gov
www.epa.gov