Army family awarded $10-million in damages over toxic, mold-infested housing at former Fort Hood

FORT CAVAZOS, Texas (KWTX) - 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 the former Fort Hood was awarded $10-million in damages, according to their lawyers at Guerra LLP and Pulman, Cappuccio & Pullen, LLP.

An American Arbitration Association (AAA) panel this week 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 the companies showed a “lack of care or concern for families living in military housing.” Evidence in the case, according to the law firm, 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.

According to court filings, the Kiernan family began experiencing the 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.

Kiernan says her youngest son’s way of life has been forever impacted by the toxic mold.

“He has a lot of medical struggles...if I were to compare it, he probably is on a two-to-two-and-a-half-year level like he’s saying new things now and he’s five,” Kiernan explained.

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.”

The arbitration 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.

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