New Orleans hotel is suing the former owner over mold

June 4, 2005

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May 26, 2005

Lawsuit alleges mold cover-up in sale of hotel to

Miss. company

The Associated Press

NEW ORLEANS A company that bought a New Orleans hotel

is suing the former owner, claiming the sale was made

without disclosing that the building had a toxic mold

problem.

After the sale of the Quality Inn Midtown Hotel,

guests began complaining that some of the rooms

smelled musty, so the new owner spent a " considerable

sum of money for repairs by January 2005, " according

to a petition filed in U.S. District Court in New

Orleans.

" However, at least 60 percent of the rooms in the

hotel still have substantial toxic mold, " claims the

recently filed lawsuit.

In April 2004, La Strada Inn Inc. sold the property to

DIV, L.L.C., a limited liability company in

Hattiesburg, Miss., for $3.1 million. It was renamed

the New Orleans Midtown Hotel.

DIV would not have purchased the property had it known

of the toxic mold problem, said Lynn

Jr., an attorney representing the Mississippi firm.

The " defendant also fraudulently covered up the mold

problem with wallpaper, paint and/or cleaning so that

the mold problem would not be visible or noticeable

upon inspection, " the lawsuit says.

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