In the wake of a Santa Clara County (Calif.) Superior Court judge ordering Sherwin-Williams (parent company of DuraSeal), NL Industries and ConAgra Grocery Products to pay $1.15 billion to help nine of the state's cities and counties remove lead paint from homes, a housing and real estate advocacy group is worried about home values plummeting in the Los Angeles area. The Dec. 16 ruling states that the three companies violated public nuisance laws by promoting the use of lead paint while they knew it was dangerous. (The lawsuit is specific to old paint products and does not involve wood floor finishes or the DuraSeal brand.)
According to National Mortgage News, Judge James Kleinberg's determination affects 2.6 million homes built prior to 1978 in Los Angeles County and approximately 5 million throughout the state. "This could precipitate the worst plunge in California home values since the housing crash of 2007," Guiseppe Veneziano, president of the Los Angeles County Boards of Real Estate, told the news outlet. "Imagine the coming disruption of inspectors fanning out to ascertain traces of lead in pre-1978 structures and then requiring the removal of that lead. This will require occupants, possibly blocks at a time, to vacate and relocate until safety is restored to the satisfaction of authorities."
All three defendants are expected to appeal the decision.
