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Settlement reached in mold lawsuits
July 22, 2006
Updated Aug. 21, 2013 1:17 p.m.
By RACHANEE SRISAVASDI / The Orange County Register
"MAJOR VICTORY": Beth Costello and her daughter Devin, 8, are pleased with the outcome of a settlement reached Friday at the Lamoreaux Justice Center in Orange. YGNACIO NANETTI, THE REGISTER
Timeline of mold lawsuits in O.C., 1996-2006
May 2006: Six families win their mold contamination lawsuit against Childtime Daycare, a now-closed Newport Beach day-care facility.
October 2004: A Santa Ana teacher files a lawsuit against the Santa Ana School District citing mold in her classroom as cause of her respiratory illness, but fails to prove so in court.
August 2002: Melissa Celmer and family of Fullerton received $900,000 to settle a toxic mold case from fungus growing in the walls of their apartment.
June 2002: The Breakers at Bear Brand Homeowners Association in Laguna Niguel has settled a million-dollar mold lawsuit against Shea Homes.
October 2000: Forty-one Rancho Santa Margarita homeowners who said their homes suffered water damage, mildew and mold because of poorly made concrete brought a lawsuit against James Mock Inc., and were awarded more than $3.5 million
September 1999: Three lawsuits filed in Superior Court in Santa Ana state that the mold in the Market on the Lake center is dangerous and that it left several employees seriously ill.
ORANGE - Six families were in court Friday as a judicial officer approved a settlement to their mold-contamination lawsuits against a now-closed Newport Beach day-care center.
The youngsters - whose parents say they suffered from ailments such as hearing loss, ear infections and vomiting after their stays at Childtime Childcare - will get an undisclosed amount of money. The actual amounts were sealed.
The parents sued Childtime Daycare in February 2003, a month after the center had closed.
They said the center, which was on San Miguel Drive, had "chronic water intrusion" which infested the center with a black mold, stachybotrys, which became toxic. There is no direct evidence that the children got sick because of the mold, but the parents say their kids became healthier after leaving the center.
Susan McClister, who now lives in Santa Clarita, was the parent who found out about reports of the mold and told other parents. Her two children - 9-year-old Patrick and 6-year-old Megan - attended the day care as toddlers. They had pneumonia, coughing and congestion.
"They put kids at risk," she said.
Eight-year-old Devin Costello had permanent hearing loss in her right ear, said her mother, Beth Costello.
Ronald Schwartz, attorney for parents, called the settlement a "major victory" to deter other child-care centers from exposing children to mold.
Chris Workman, an attorney for Childtime Childcare, said the lawsuit prompted the business - which has day-care centers nationwide - to try to tell parents of conditions that may have health or safety implications.
But in this case, he said there was no evidence the children got sick because of the mold. The settlement does not deem the center culpable of making the kids sick.
Sandy McNeel, a research scientist for the California Department of Health Services, said mold can affect one's health. She said research indicates individuals who are in damp or moldy buildings are twice as likely to have respiratory problems than those in environments without mold.
Also at the hearing, the judicial officer approved a separate mold-contamination settlement regarding the center. Siblings Alicia and Drew Miller will get $20,000 each. The siblings now live in Colorado.
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