Brad Pitt foundation sued for faulty post-Katrina construction

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Charitable intent to replace Ninth Ward housing results in extensive legal battles

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South Carolinians are no strangers to the extensive destruction caused by hurricanes and floods. Our friends in Conway, Nichols and surrounding areas are in the process of cleaning up from the most recent disaster that hit our state in October. And we look on with empathy as our friends in other parts of the world face similar disasters. I lived in Panama City, Florida during my middle and high school years, and the destruction my friends there are facing at this very moment as a result of Hurricane Michael is unimaginable.

It does not go unnoticed when a celebrity attempts to make a difference in the face of natural disasters. The Make it Right Foundation is a non-profit founded by actor Brad Pitt in 2007 to build environmental friendly homes in New Orleans’ Ninth Ward following the destruction caused by Hurricane Katrina.

The homes were intended to be storm-safe, certifiably green, energy efficient and affordable. The original goal was to build 150 homes in the area hit hardest by Katrina. The homes were available at prices around $150,000 to residents who received resettlement financing, government grants and donations from the foundation. Brad Pitt was apparently proud of the construction, calling the area an oasis of color and solar panels.

More than ten years and $26 million later, construction has stopped 40 houses shy of the goal because of alleged faulty construction including leaky roofs, faulty HVAC systems, sagging porches and rotting and mildewing wood. Residents have reported headaches and illnesses. A New Orleans attorney has brought a class action lawsuit against the foundation, alleging that the construction is substandard and the homes are deteriorating at a rapid pace.

Related claims have been filed by the foundation against the makers of an experimental wood product called TimberSIL which didn’t fare well in the hot and humid south Louisiana environment as well as architects who may be responsible for failure to property waterproof the structures. Insufficiently sloping roofs may be partially to blame.

The original suit was brought in Orleans Parish Civil District Court but has been removed recently to the United States District Court for the Eastern District of Louisiana.

Despite the good intentions of Brad Pitt and his foundation, it appears the lawsuits related to these Ninth Ward homes may linger for years.

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Dirt Lawyers: Prepare to Advise Clients Struck by Disaster

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Georgetown, South Carolina (Image by abcnews.go.com)

Just prior to the destruction brought on by Hurricane Matthew to our beloved state on October 8th, I saw two funny quips, which proved that humor is not always lost in the face of disaster. A friend posted on Facebook a football metaphor, hoping Matthew’s aim would be “wide right”.  That didn’t happen. And a preacher friend of a friend put up a sign at his church:  “Mark, Luke and John, please come get your boy.”  That didn’t happen either.

What did happen, according to CoreLogic was $4-6 billion in damage from wind and storm surge damage in all states affected by Matthew. CoreLogic’s media advisory, which compares the destruction of Matthew to Katrina in 2005, Sandy in 2012, Floyd and 1999 and David in 1979, can be read here.  The damage from Katrina, for example, was in the range of $35-40 billion. Of the $4-6 billion damage from Matthew, 90 percent of insurance claims are expected to be related to wind and 10 percent to storm surge, according to the article.

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Springmaid Pier rubble, Myrtle Beach, South Carolina (Image by myrtlebeachonline.com)

Our hearts are breaking for our family members, friends and neighbors who have lost so much in this disaster. Some have not yet been able to return home and don’t know the extent of the damage at this point.

It was just one year ago that South Carolina was forced to begin recovery efforts from the 1,000 year-flood, and those efforts are far from complete. I said in a blog about the flood, and I will repeat here that for those of us old enough to remember, this disaster feels incredibly like the aftermath of Hurricane Hugo in 1989.

As we think back to the beautiful areas of South Carolina that were hardest hit then and reflect on those areas today, it seems that almost all of them are better and stronger and more beautiful than they were before the disaster. South Carolinians are strong and resilient, and we are stronger today than we were last year.

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Historic City Market under water in Charleston, South Carolina (Image by abcnews.go.com)

Dirt lawyers are in a unique position to advise clients who are not familiar with the assistance that may be available to them. I challenge each of us to pass along the information that will assist in recovery efforts.

For example, Fannie Mae and Freddie Mac wrote press releases reminding mortgagors of the options available for mortgage assistance in the affected areas. Those press releases can be read here and here.  FEMA resources are outlined here.

As always, I have confidence that South Carolina real estate lawyers will rise to the occasion and provide the best advice available for their clients. I am proud to be associated with this dedicated group of lawyers.