In 2024, they had to abandon the house after sewer gas was found in their air vents.
“They are still in the RV,” Just Well Law attorney Maggie Neusal, who oversaw the McCoy case, told KERA News. “They’ve been staring at a house they can’t live in for about two years now.”
The jury’s verdict brings much-needed support to the family — but a defendant’s bankruptcy might keep them from getting all they’re due. Here’s what’s happening in the court case.
The defendants let mold and toxic gas fester in the home for years
The McCoys’ suit was against several different contractors. The primary defendant was NAE Enterprises, but other defendants, including company Dauenhauer & Associates and individual Ricky Dauenhauer, were also named.
The defendants were accused of routing plumbing vents into the attic, which led to migraines and dizziness among other health concerns. The defendants allegedly also failed to seal the foundation, creating a situation conducive to growing mold.
“Because homeowners cannot see inside every plumbing line, attic or wall, builders and contractors owe families like the McCoys every effort to ensure their homes are built safely,” said Neusel. “This was not simply a case of poor workmanship. It was a profound failure of responsibility, with devastating consequences.”
The jury found the defendants violated Texas’s Deceptive Trade Practices Act; it also found them guilty of multiple different types of negligence. The family was awarded $21.6 million, including $10 million in extra damages.
What happens if a company you sue declares bankruptcy?
Unfortunately for the McCoys, one of the defendants, Dauenhauer & Associates, filed for chapter 7 bankruptcy before the verdict even came in. Chapter 7 bankruptcy allows a company that’s deep in debt to discharge that debt and shut down.
“Chapter 7 means a company is being liquidated. Its assets are gathered and distributed to creditors by a court-appointed trustee, and lawsuits against that company are paused,” Just Well Law attorney Sabine Wakim, another attorney who worked on the McCoys’ case, told Moneywise. “That can limit what can be recovered from that particular defendant.”
Because the McCoys’ case was a civil one, that payment is effectively paused. If it was a criminal case, prosecution would still continue.
