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Mold sends homeowners packing

Daily Pilot - Costa Mesa,CA,

Charging shoddy workmanship followed by indifference, some sue

homebuilder.

By

http://www.dailypilot.com/articles/2006/08/18/news/dpt-homes17.txt

This and other Ocean Heights subdivision homes are in the process of

being rebuilt due to severe rain damage and mold. Owners are suing

the builders for the the cost of the poor construction.

NEWPORT COAST — After abandoning a home in Corona del Mar to escape

mold problems, major league sports agent Leigh Steinberg and his

family experienced unwelcome deja vu when their custom-built home in

Newport Coast apparently couldn't withstand heavy rains in 2004 and

2005.

Water came into the living room, garage and elsewhere in the house,

Steinberg said, and his mold problems threatened to begin again.

More than a dozen of his neighbors living in $4-million to $5-

million homes with ocean views tell similar tales, and they said the

builder, U.K.-based Woodrow, has only made limited efforts to

repair the damage.

Now Steinberg is the lead plaintiff in a lawsuit filed in June 2005

in Orange County Superior Court asking the builder for at least $10

million to fix " improper design, construction and/or installation "

of the homes.

After having the home inspected, Steinberg said, " It became clear

that to ever fix the house, every window will have to be replaced,

the walls will have to be taken down to the studs and, in essence,

the house will have to be completely rebuilt. "

According to the homeowners, the problems started in late 2004, when

100-year rains hit Orange County. They attribute the problems to

improper drainage, faulty waterproofing and poor-quality materials.

Heidi Ambe and her husband paid $3.55 million for their home, which

was built in 2001. When the water invaded, Ambe said, toxic mold

grew inside the walls and her 18-month-old daughter became ill,

appeared listless and was covered in a head-to-toe rash.

Woodrow officials initially said they would take care of it,

but once they realized how big the problem was, Ambe said, " They

rescinded our offer and said, 'We're sorry — you're going to have to

sue us.' " The family moved out of the house in April 2005 and is

now renting a place in Newport Beach. advertisement

To pay for a temporary home and reconstruction of their Newport

Coast house, Ambe said she and her husband have been working extra

hours.

" My poor husband — he's a plastic surgeon — he's having to do five

surgeries a day … where typically it would be three, " she said.

Woodrow spokeswoman Arianna Barrios at the builder's regional

headquarters in Irvine would say only that the company does not

comment on ongoing litigation.

Other building and real estate experts said in their experience,

cases like those Ambe and Steinberg describe are rare, though they

added they are not familiar with the Newport Coast suit.

Several years ago, a few mold cases took on high profiles, which led

some homeowners to panic even though mold has been around a long

time, said Center, spokeswoman for the Building Industry Assn.

of Southern California.

Now, claims are rare because builders take steps to prevent mold,

she said.

" Homebuilders for the most part want the first opportunity to fix

problems without going to court, " Center said.

In some cases, attorneys push homeowners to litigate, said real

estate broker Kent McNaughton, who sells homes in Newport Coast.

Under state law, builders are responsible for defects in their homes

for 10 years; some lawyers will encourage clients to check their

properties for defects before the end of that period, he said,

encouraging a lawsuit if a significant defect is found.

" I find it very rare that you would find a quality builder like

Woodrow that you would have a construction defect of that

magnitude, " he said.

But the homeowners say the builder is shirking responsibility. Some

are living with parts of their homes sealed off by plastic, and a

few who were unable to wait have begun rebuilding.

" The mold testing and reports speak for themselves as far as the

extensive amount of toxic mold in the homes, " said Roseman,

an attorney representing 12 of the 16 litigating homeowners.

The most galling aspect of the story for the homeowners is that

Woodrow built two homes for less fortunate families on

the " Extreme Makeover: Home Edition " TV show, and in one case the

company was remodeling a mold-infested home for a family with a sick

child.

On the show, a Woodrow executive becomes tearful as he is

praised by the family and the show's host.

And yet, Steinberg said, the company refused to help him and his

neighbors.

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