Arbitrators found private contractors showed "lack of care or concern for families" living in mold-infested military housing

SAN ANTONIO, July 3, 2024 /PRNewswire/ -- A U.S. Army sergeant's family forced into arbitration over medical problems and economic losses caused by their toxic, mold-infested military housing at Fort Cavazos (formerly Fort Hood) has been awarded $10.3 million, according to their lawyers at Guerra LLP and Pulman, Cappuccio & Pullen, LLP.

In an interim award Monday, an American Arbitration Association (AAA) panel ordered respondents Fort Hood Family Housing LP, FHFH, Inc., and Lendlease US Public Partnerships, LLC to pay economic damages, mental anguish damages, attorneys' fees, and pre-judgment interest to claimants Sgt. Jason Kiernan and Sarah Kiernan and their three children.

The arbitrators ruled that the companies showed a "lack of care or concern for families living in military housing." Evidence in the case indicated Fort Hood Family Housing employees used numeric codes in company maintenance reports to hide references to mold and withheld the company's prior knowledge of construction or design defects that promoted mold growth in Fort Cavazos homes.

The Kiernan family is represented by Frank Guerra, Robert Brzezinski, and Jennifer Neal of Guerra LLP; Ryan C. Reed, of Pulman, Cappuccio & Pullen, LLP, in San Antonio, Texas; and Wes Johnson of Johnson Reist, PLLC in Plano, Texas.

According to court filings, the Kiernan family began experiencing health effects of their mold-infested housing in early 2019 during Sarah Kiernan's pregnancy. Two months later, their infant son was life-flighted to Dell Children's Medical Center where he was hospitalized for 20 days. Weeks later, the Kiernans' older sons fell through a wall in the home, exposing black mold in the walls.

The Kiernan family initially filed their claims in federal court, alleging multiple causes of action against the military housing companies including Deceptive Trade Practices Act (DTPA) violations; breach of statutory implied warranty of habitability; breach of contract; negligence; negligent misrepresentation; gross negligence; statutory fraud in a real estate transaction; common law fraud; unjust enrichment; and violations of the Texas Property Code.

The Kiernans' dispute, along with many other military families, arose due to complaints about the living conditions at Fort Hood Family Housing under the Military Housing Privatization Act. A federal court judge found that the lease agreements signed by servicemembers at Fort Cavazos required disputes to be arbitrated, pursuant to Section 18 of the Residential Lease Agreement.

"The overwhelming evidence revealed that Respondents' gave Claimants a false sense of security that the home was properly repaired and was safe for them to occupy with families and infants," according to the panel which also found "false, misleading, deceptive, and unconscionable conduct" by the companies – and "contempt and a lack of concern for the Kiernans."

Frank Guerra, of Guerra LLP, said, "This important ruling proves that military families like the Kiernans have the right to expect safe homes and they are right in holding these companies accountable. Mold is a terrible risk to those exposed to it at home – and the evidence shows these companies could not have cared less."

Ryan C. Reed, of Pulman, Cappuccio & Pullen, LLP, said, "The Kiernans are grateful that their concerns and those of other military families were heard by the arbitration panel. We hope this case is an important step forward in helping address the nation's military housing crisis. Our service members and their families cannot be expected to live in fear of their homes and continue to be abused by the corporate-controlled military housing system."

Jennifer A. Neal, of Guerra LLP, said, "The private companies hired and paid to maintain base housing must be held accountable for their deceptive conduct. We consistently hear of this same pattern of behavior from military families all over the country. We will continue to answer the call in forcing these companies to do what they promised to do – provide our service members safe housing."

Robert Brzezinski, of Guerra, LLP, said, "No person, and certainly no serving member of our country's military or their loved ones, should ever be gaslighted by their landlord about a supposedly safe home which is, in fact, riddled with mold, water leaks, and other unsafe conditions. This is a small but significant step in the fight to provide military families with a safe roof over their heads."

The panel found that the Kiernans shall recover economic damages of $2,361,963.27, trebled three times, for a total award of economic damages in the amount of $7,085,889.81; mental anguish damages valued in the amount of $974,081.75, which is trebled, in the amount of $2,922,245.25; attorneys' fees and costs to be determined at a later date; pre-judgment interest in the amount of $304,517.07; and; post-judgment interest.

The case is Jason Kiernan v. Fort Hood Family Housing LP, FHFH, Inc., and Lendlease US Public Partnerships, LLC, AAA Case No. 01-22-0005-4250.

Contact: Erin Powers, Powers MediaWorks LLC, for Guerra LLP, 281.703.6000 or info@powersmediaworks.com.

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SOURCE Guerra LLP