Moldy house costs builder $3 million

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Moldy house costs builder $3 million

Sunday, May 11, 2008

Columbus Dispatch - Columbus,OH*

By JIM WOODS

http://dispatch.com/live/content/local_news/stories/2008/05/11/threem

ilhouse.html?sid=101

THE COLUMBUS DISPATCH

In Reynoldsburg, it's known as the $3 million house.

But it has nothing to do with the home's value or amenities.

In fact, the house has been empty for more than two years. A blue

tarp covers a hole where the builders tore off part of the stucco

exterior but never repaired it. Inside, mold thrives.

Roman and Cosner paid $219,000 for the new home in the

Slate Ridge subdivision in March 2005. They had high hopes.

" We were looking forward to a new house with no issues where we

didn't have to do anything, " said Mr. Cosner. He had his hands full

running his dog day-care business.

The Cosners were swayed by a one-year warranty and promises in

Maronda Homes' sales literature, which extolled quality materials

and skilled workmanship.

What they got was a house riddled with deficiencies and mold that

sickened Mrs. Cosner and the Cosners' son, Roman Jr., forcing them

to leave.

" It's one of those stories that you'd never believe if you haven't

lived it, " Mr. Cosner said.

In February, a lin County Common Pleas Court jury agreed that

Maronda Homes had turned the American dream into the Cosners'

nightmare.

The judge awarded the Cosners $2.2 million in compensatory damages —

triple the original jury award — because jurors found that Maronda

Homes had violated Ohio's Consumer Sales Practices Act by acting in

an " unfair, deceptive or unconscionable " manner. Jurors tacked on an

additional $1million in punitive damages.

Maronda Homes, in a prepared statement, calls the verdict " a

complete miscarriage of justice. " The Cosners prevented Maronda from

making repairs, the statement says. During the trial, the company

says, it was denied the right to have a critical witness testify and

the judge tripled the award, which is inconsistent with the jury's

findings.

" Maronda is disappointed with the outcome of this case and it is

continuing to explore all of its legal options, " the statement said.

If the company appeals, it might be years before the Cosners see any

money.

On Friday, visiting Judge Dale A. Crawford ordered that Maronda pay

almost $700,000 more in attorney fees if the judgment stands.

Roman Cosner said the family didn't want to go to court.

" This is not what we asked for, " he said. " We just wanted the house

fixed. "

Maronda Homes has staked its reputation on providing the largest

home at the lowest possible price, according to the Homebuyer's

Advocate, a Web site run by Mike Marshall, who represents real-

estate buyers. The quality of the company's developments varies from

site to site, Marshall said.

J.D. Power & Associates, in a report released in September 2007,

found that Maronda rated third out of nine major developers in

central Ohio for new-home quality. Maronda ranked ninth for customer

service and design. The Ohio attorney general's office has fielded

12 complaints about Maronda since January 2007. During the same

period, larger developers such as Dominion Homes had 12 complaints

and M/I Homes 13.

The Reynoldsburg Building Department signed off on the Cosners' home

when it was finished in 2004, according to Chet Hopper, department

chief.

But the south side of the house was not attached to the foundation

and was inadequately attached on three sides. The wrong windows were

used, which caused leaks, and the exterior waterproofing and

drainage around the house were done improperly, court records show.

As a result, water seeped in and mold grew on the basement walls, in

the heating and air-conditioning system and on the floors. Testing

showed extremely high levels of a toxic mold in the basement, said

attorney Mordarski.

The first sign of trouble came soon after a rainstorm when the

Cosners noticed water cascading down the inside of their garage

wall. Then there were puddles on the basement floor.

As the problems piled up, Maronda Homes refused to fix the problems

and treated the Cosners with " hatred and ill will, " the family

contends.

The Cosners at one point put a sign in their yard that said: " Moldy

Maronda Home. " The company sued them for defamation.

A Maronda official told Mrs. Cosner that she had toxic mold in her

house, instructed them to move out and said the company would pay

their expenses. That's when the crew tore off the stucco on the

house's south side.

But Maronda never paid the lodging bills, nor did the company fix

the problems.

In fact, Mrs. Cosner testified that during a meeting in her basement

a company official asked how the problems could be fixed. A worker

nodded toward her and said: " We just need to get rid of that

problem. "

Mrs. Cosner was hoarse, and Roman Jr., who is now 8, was missing

school because he was ill. When they moved out of the house and into

a motel, they recovered.

The Cosners have moved to another house in Gahanna. They have a " For

Sale " sign in front of their problem house, on which they haven't

made a payment in months. Mr. Cosner said he has learned from the

experience to be wary.

" I know a lot more now. When I bought the new house, I relied on

them. "

jwoods@...