Foreclosure reprieve: Lawsuit stalls 'this mold house' auction

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NEWS- Foreclosure reprieve: Lawsuit stalls 'this mold house' auction

Published March 1, 2007 in issue 0609 of the HooK.

By LISA PROVENCE LISA@...

The Hook - Charlottesville,VA,USA

http://www.readthehook.com/stories/2007/03/01/NEWS-moldhouse-

B.rtf.aspx

The house was scheduled to be sold at auction February 23 at the

Charlottesville Circuit Courthouse. But shortly before the gavel was

to fall, the foreclosure sale was canceled. While one family crisis

has been momentarily averted, a legal battle looms.

The house at 2207 Wayne Avenue, subject of the Hook's March 31, 2005

cover story, " This mold house: Family devastated by spore war, " has

a tumultuous history. Just two day after the new owners purchased it

February 10, 2005, their asthmatic daughter was hospitalized. They

say it's because the house was full of mold, and they wanted to sue.

" It had to be done, " says Judit Szaloki, whose dreams of happy

homeownership were dashed when she and husband Larry realized

the extent of the mold in the house. Their efforts to find a lawyer

to take the case, however, were fruitless.

Szaloki filed suit pro se-- without an attorney-- February 20

against former owners Steve and Betty Dudley, real estate agent

Sirlei , broker Pat Jensen and home inspector Blake Caravati.

She's seeking $431,000, as well as compensation for emotional

distress.

Szaloki used to run a daycare business that was the primary source

of the family's income before they moved into the Wayne Avenue

house, and she'd intended to continue that in the basement of her

new home. She says that even after walls were gutted and mold

remediated, the lack of a downstairs bathroom and an adequate

kitchen have kept her from reopening the business.

The notice of her intent to file suit lists $60,000 for loss of

livelihood, $249,000 for the cost of the house, $10,000 for loss of

personal belongings that had to be thrown out when they were

infested with mold, $60,000 to $80,000 for remediation, $30,000 for

their cars (which were repossessed), and $2,000 for medical bills.

Real Estate III broker Pat Jensen was not aware she was being sued

when a reporter called. " I'm trying to think how I would be

involved, " she says.

Jensen contends that the pre-purchase home inspection had pointed

out the presence of fungus and mildew growth, but Szaloki and

were " enthusiastic " about getting a house because a couple of others

had gotten away from them. Real estate agent Surlei , now

living in England, was concerned, says Jensen, and gave them a

waterproofing coupon.

Szaloki and contend told them they could wipe the

mold down with Clorox, and that the coupon was worthless.

" My point is, they were given so many opportunities to do something

about it and didn't, " Jensen says. Even at closing, she says,

called her because the seller wanted to be released from the

contract.

" We gave up just about all of our commission to make this work for

those folks, " Jensen says.

After the family's plight was publicized, ServiceMaster franchisee

Steve remediated the house for free, and other members of the

community also pitched in.

" An awful lot of people did an awful lot to help them, " says Jensen,

who notes that Real Estate III " offered to help them with one

monthly payment, but it wasn't as much as they wanted. "

" Pat Jensen would give us $1,000 if we signed a waiver that we would

not take them to court, " replies Szaloki.

Blake Caravati, who performed the home inspection (and who is the a

former Charlottesville mayor), has not seen the suit. " It's sad it

came to this, " he says.

Szaloki says many lawyers in town either do business with the

defendants or wanted too much money up front to take the case. So

she filed it herself.

" The legal system is for the people, " says attorney

Slaughter. " That said, it's a difficult road to take on a lawsuit

without legal representation. " He warns of procedural land mines

that defense attorneys might exploit, but he adds, " If she can ever

make it to a jury, they may be sympathetic. "

Another local attorney, Matt Murray, notes, " There's a huge

difference between filing a lawsuit and obtaining a judgment. As a

plaintiff, you have one chance to get it right. The penalty for not

knowing a rule can be dismissal.

" When folks have difficulty finding a lawyer on a contingency, " says

Murray, " that is some indication the entrepreneurs in the tort

system don't believe their efforts will be rewarded. "