In the case of Janice Claborne and Sheryl Jones versus The Housing Authority of New Orleans, court case ID No. 2023-CA-0214, filed in the Fourth Circuit Court of Appeal, State of Louisiana, the plaintiffs have brought forward a class action lawsuit concerning damages from mold exposure in public housing developments. The filing date is March 21, 2024.
The plaintiffs initiated this class action on December 17, 2001, representing themselves and others similarly affected by mold exposure while residing in a public housing development owned and operated by The Housing Authority of New Orleans (HANO) and managed by Guste Homes Resident Management Corporation (Guste) and B.W. Cooper Resident Management Corporation (Cooper). They also filed a direct action against Penn America Insurance Company, the liability insurer for Cooper and Guste.
The district court certified the class in 2014 to include all leaseholders and other permanent residents adversely affected by toxic mold presence due to HANO's breach of their contractual duty with HUD pursuant to 24 CFR Part 5, § 5.703(f) to maintain apartments free of mold from 1998 onwards.
The plaintiffs are seeking judgment against Guste, Cooper, and Penn America Insurance Company following a jury verdict that dismissed their claims with prejudice. They are appealing for a new trial on remaining Phase One liability issues after finding that as a matter of law, both Cooper and Guste had an obligation to maintain their respective housing development free of mold.