Board accepts $1.5M in NCCU mold lawsuit




BY PAUL BONNER, The Herald-Sun

May 12, 2006   7:43 pm

DURHAM -- The UNC Board of Governors has accepted $1.5 million to settle a lawsuit against contractors and the architect of dormitories at N.C. Central University that became infested with mold.

The board Thursday approved the settlement of the lawsuit, which entered court-ordered mediation last month. Board of Governors Chairman Brad Wilson said in a statement that the settlement represented only a fraction of the cost of work on Residence Halls 1 and 2 at NCCU to correct a moisture buildup that caused mold to flourish. But he said there were also practical hurdles to demonstrating exactly who was to blame.

NCCU officials on Friday welcomed the development.

"We support the settlement," said Charles O'Duor, NCCU's vice chancellor for financial affairs.

The problems were corrected in the two dorms, which together house 488 students. Officials say they're not aware of anyone becoming sick from the mold.

One problem with assigning responsibility was the four years between the time the dorms opened and summer 2003, when they were closed for repair, Wilson said.

Renovations cost more than $7 million, which was drawn from state construction funds. Temporarily housing the displaced students in off-campus hotels and apartments cost another $4.8 million. The buildings were fitted with new roofs and heating-air conditioning systems, among other modifications.

The relatively large number of contractors and subcontractors involved also made it difficult to pinpoint fault, Wilson wrote. Three contractors and 15 subcontractors were involved, along with Gantt Huberman Architects of Charlotte. Harvey Gantt, a former Charlotte mayor who ran unsuccessfully in 1990 for U.S. Senate against Jesse Helms, heads the firm.

Because the project used so-called "multi-prime contracting," no single contractor could be held legally liable, Wilson wrote.

State law now requires the UNC system to use single-prime contracting. That change, with other reforms, should prevent such an accountability problem in the future, Wilson said. Also, he said, the UNC system has improved its ability to manage construction projects and maintain facilities.

Leaks in NCCU's campus steam heat system also contributed to the moisture problem, Wilson said. NCCU is earmarked for nearly $333,000 in the UNC General Administration's budget request this month to the General Assembly for planning funds on ongoing repairs to the steam system. The university estimates the repairs will cost $6.4 million to complete.

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