MOLD COURTROOM NEWS

Date: 2 February 2004

SAN ANTONIO — A Texas school district that sued contractors responsible for building an auditorium that did not meet specifications and later became contaminated with mold has settled the case for a reported $5.77 million. Edgewood Independent School District v. Bradley Molina Architects, Inc., et al., No. 2002-CI-04412 (Texas Dist. Ct., Bexar Cty.).

According to sources, the Edgewood Independent School District reached the agreement recently with six contractors and subcontractors who were hired by the district in 1997 to build the 1,500-seat Edgewood Fine Arts Auditorium.

Edgewood School District sued the defendants in March 2002, alleging breach of contract, negligence, breach of express and implied warranties and strict products liability. The district maintained that it contracted with Bradley Molina Architects to design and supervise the building's construction. In accordance with specifications, the building was to be constructed so that it would keep falling and draining rainwater from infiltrating the building's interior, thereby preventing water and mold damage.

The district then hired Incore, Inc., to build the auditorium under Bradley's supervision. Incore contracted with Ericstad, Inc., a mason, Dulaney Exterior Solutions, a waterproofing firm, and various additional contractors and subcontractors.

After the contractors had warranted that the construction was essentially complete, the district took occupation of the building in early 2000; however, it alleged in the lawsuit that the building leaked profusely. Sources said that water from the leaking building saturated the ceiling, walls, carpeting, electrical and sound systems, seating and window areas, causing mold to develop on the building's interior and exterior, especially in the performance area of the auditorium.

The plaintiff alleged that each of the defendants warranted that the services provided were of professional grade and quality, but in reality, the workmanship fell short of expectations and was wholly different than what was represented to the district, the lawsuit alleged. Edgewood asserted that the contractors covered up their own mistakes and shortcuts that ultimately caused the leaks and subsequent mold growth.

The estimated cost of fixing the building was between $3 million and $4 million, according to sources. The case settled for $5.775 million following mediation, which got underway in October and was presided over by Bert Pluymen of Austin, Texas, sources said.

Edgewood was represented by Kevin M. Young and Michelle K. Bartley of Prichard, Hawkins & Young in San Antonio, and Ralph A. Lopez of the Law Office of Ralph A. Lopez in San Antonio.

Bradley Molina Architects, Inc., was represented by John E. Westcott of Thornton, Summers, Biechlin, Dunham & Brown in Corpus Christi, Texas. Incore, Inc., was represented by Craig Taliaferro of the Law Office of Craig Taliaferro in San Antonio. McNeil Roofing & Sheet Metal was represented by Edward Hecker of Gostomski & Hecker in San Antonio. Dulaney Exterior Solutions, Inc., was represented by Thomas J. Walthall Jr. of the Gardner Law Firm in San Antonio. Ericstad, Inc., was represented by Edward J. Batis Jr. and David P. Benjamin of O'Connell & Benjamin in San Antonio. Louis Cruz Architects, Inc., was represented by Matt Cano of Allensworth & Porter in Austin, Texas.

For more information, contact:

Alan L. Wozniak, CIAQP

(800) 422-7873 ext. 802