$22.6M Settlement in Mold Litigation, Los Angeles

November 2, 2005

Sent: Wednesday, November 02, 2005 2:37 PM

Subject: Reports $22.6 Million Mold Settlement

For November 2, 2005

This just in to 's COLUMNS-Mold Web site... $13 Million

from Lumberyard Brings Calif. Mold Settlement to $22.6 Million

LOS ANGELES -- A California family accepted $13 million from a lumber

company in mid-trial to complete a $22.6 million settlement with their home's

contractors and suppliers over mold contamination blamed for a child's severe

brain injury.

Attorney D. Witzer, who represented Gorman, his wife, Dana M.

Pace, and their three children, declined to identify the settling lumber

company, but said, " we hope this settlement sends a signal to lumber yards

nationwide to treat mold growth issues seriously and establish policies to

protect

the public's health and safety. "

Los Angeles County Superior Court Judge Chaney has scheduled a

hearing for Nov. 14 to consider approval of the settlement terms for the three

minor plaintiffs, Kellen M., Kyla M. and Tenley L. Gorman.

The Gormans complained of respiratory and sinus problems shortly after

moving into a new $1.9 million home in Manhattan Beach, Calif., in 1999. They

stayed in the home for two years before moving because of deteriorating health

problems, including brain lesions and cysts suffered by Kellen Gorman, now age

5, which were revealed in an MRI taken when the child was 3-1/2. An MRI taken

when the child was 1-1/2 was normal, according to the Gormans.

Other family members complained of respiratory and related problems, and

Gorman also asserted claims for cognitive difficulties, including memory

loss.

All but one defendant agreed in the weeks preceding trial to pay the Gormans

a total of $9.6 million to settle individual claims, according to counsel.

Plaintiffs presented evidence for six weeks and had nearly completed its case

when the settlement was reached, counsel said.

More on this story is available to subscribers at www.harrismartin.com

today, and will be included in the November issue of COLUMNS-Mold.

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