PSJA settles for $11.2 million in mold lawsuit

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PSJA settles for $11.2 million in mold lawsuit

August 02,2005

Osborne

The Monitor

Texas

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SAN JUAN — The Pharr-San -Alamo school district has accepted an

$11.2 million settlement in its lawsuit against the construction

company that built PSJA High School.

In June, an arbitration panel ordered the Landmark Organization to

make the settlement offer after determining that the company was

responsible for the cost of a $10.2 million mold cleanup project

undertaken by the district in 2002, said PSJA Superintendent Arturo

Guajardo. In its lawsuit, which also named 44 subcontractors, the

district claimed the building developed a problem with mold due to

design and construction flaws for which the Austin-based general

contractor was responsible.

Landmark filed a countersuit claiming the school district had failed

to provide them the opportunity to inspect the building and

determine what problems existed before going ahead with the cleanup.

In a prepared statement Monday, the company criticized the

arbitration panel's decision.

" Landmark Organization did not agree that the (PSJA) school district

had been harmed to the extent attributed to it by the arbitration

panel that decided this case, " the statement read.

" It appears that the arbitration panel gave undue weight to the

amount of money PSJA school district spent on what Landmark

Organization believed to be questionable remedial work. "

The company said it would attempt to recover the cost of the

settlement in court from subcontractors on the project.

On Monday, the school board gathered for a special meeting and

approved the deal, providing the district $6.6 million after

attorney's fees. Trustee Roy said he expected the

remaining cleanup costs to be picked up through pending lawsuits

against the project's subcontractors.

" This is merely a partial payment settlement, " he said.

" This is a positive step towards recovering all the money that was

spent. "

But local watchdog organization Grupo Poder was critical of the

settlement and questioned the validity of the lawsuit.

" About that time everyone was claiming mold, " said member Sofia

Valdez.

" Even if there was mold, it wasn't something that needed $10.2

million to clean it up. Mold's not going to kill you. It was just

something to get everyone excited. "

Warren Barry, the owner of Assured Indoor Air Quality, which has

done inspection and cleanup work for a number of school districts in

the Rio Grande Valley and across the nation, said while common mold

typically is not dangerous, there are strains that are.

" Yes, mold is everywhere. But I believe, and a lot of

microbiologists believe, you don't want active colonies in

buildings, " he said.

" There are certain types of mold, which are less common, but can

cause harmful health effects. "

The settlement with PSJA comes on the heels of another major payout

to a local entity. Cameron County reached a $12 million settlement

with Landmark last week after filing suit against the company in

2004, citing mold problems at the Carrizalez Detention Center and a

sheriff's department administration building which officials also

claimed were caused by flawed construction and design practices.

———

Osborne covers PSJA and general assignments for The Monitor.

You can reach him at (956) 683-4428.