Settlement: $1,000,000

Case:

Lavita Gillespie, as Guardian of Timothy Gillespie and Lavita Gillespie v. Peterson Properties, a business entity, Sherman Peterson, an individual, and Does 1 through 100, inclusive, No. 03-04212

Court: Dallas County District Court, 193^rd, TX

Judge: David W. Evans

Date: 7/24/2003

Plaintiff Attorneys:

Brian Depew, Engstrom, Lipscomb & Lack, Los Angeles, CA

John C. Mallios, Mallios & Associates, Dallas, TX

Defense Attorneys:

Thomas Zeff, Crabtree, Schmidt, Zeff & Jacobs, Modesto, CA

Facts & Allegations:

Plaintiff Timothy Gillespie, a minor, lived in an apartment complex located in Modesto, Calif., and owned by Peterson Properties, a business entity owned and operated by Sherman and Connie Peterson. The building in which he lived was constructed in either 1913 or 1914. Gillespie lived in the apartment from after his birth in November 1996, to Nov. 9, 1997. During that time, he suffered sever lead poisoning from lead paint in the apartment.

Gillespie's mother, Lavita Gillespie, sued the Petersons and others potentially liable for the lead content of the apartment. She alleged that they owed a duty to discover and remove the threat posed by the lead. She contended that in failing to do so they had breached their common law warranty of habitability, as well as statutory provisions dealing with lead poisoning, including the federal Residential Lead-Based Paint Hazard Reduction Act, passed in 1992, and the California Lead Poisoning Act, passed in 1995.

The case was first filed in California but was refiled in Texas to secure court approval of the settlement because the Gillespies had moved to Texas.

Injuries/Damages: Brain damage; nausea; speech impairment

Timothy Gillespie suffered lead poisoning which caused him to develop several permanent physical defects. These included brain damage with an IQ detriment of 14.4, speech construction problems, hyperactivity and behavioral problems, nausea and vomiting.

Result: The parties settled for $1 million

Insurer(s): State Farm General Insurance Co.

Plaintiff Expert(s):

Janice Nicci, Ph.D., neuropsychology, Dallas, TX

Thomas I. Kurt, M.D., toxicology, Dallas, TX

Defense Expert(s):

Douglas J. Hyder, M.D., pediatric neurology, Los Angeles, Ca

Randall C. Epperson, Ph.D., neuropsychology, Modesto, CA