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Mold cover-up alleged at N.O. hotel

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Mold cover-up alleged at N.O. hotel

New owner says it was duped by N.O. firm

Wednesday, May 25, 2005

By

Staff writer

http://www.nola.com/business/t-p/index.ssf?/base/money-

0/1117000537253460.xml

A New Orleans company sold a four-story hotel on Tulane Avenue

without disclosing that the building had a " toxic mold problem, " a

lawsuit claims.

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 and need remediation repair, " claims the suit

filed recently in the state's Eastern District Court.

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.

Neither Divya Patel, manager of the hotel at 3900 Tulane Ave. near

Carrollton Avenue, nor F. Pat Quinn Jr., the registered agent of La

Strada Inn Inc., could be reached for comment.

DIV would not have purchased the property had it known of the toxic

mold problem, said Lynn Jr., an attorney representing

the Mississippi company.

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.

As a result, the plaintiff's franchise agreement with Choice Hotels

International Inc. was terminated, and the hotel cannot be marketed

as a Quality Inn hotel, according to the lawsuit, which adds that

the " plaintiff will have to pay as liquidated damages thousands of

dollars in accordance with the franchise agreement. "

The Mississippi company is seeking damages for loss of income,

repair costs, liquidated damages paid to Choice Hotels International

and for mental anguish and emotional distress.

.. . . . . . .

can be reached at lwilliams@... or

(504) 826-3358.

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