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Holly Plaza tenants file class action suit against Holly Ridge, Pendergraph Management

A pile of trash bags on the front lawn of a white townhouse.
WHQR
A pile of trash bags in front of a Holly Plaza apartment. Former tenant Briana Paull is one of the many plaintiffs in a class action suit against Pendergraph Management and the town of Holly Ridge.

A group of tenants is bringing legal action against the town of Holly Ridge and Pendergraph Management, which managed Holly Plaza, the town's public housing complex.

Former residents of the public housing complex Holly Plaza are now taking legal action against the town of Holly Ridge in federal court.

On Monday, a group of tenants filed a class action suit in North Carolina's Eastern district. They're suing the town of Holly Ridge, the Holly Ridge Housing Authority, property managers Pendergraph Management, and various contractors who did work on the complex over the years.

The lead plaintiff for the case is Briana Paull, a single mother who has lived at Holly Plaza since 2020. The suit makes several allegations about her experiences. Paull stated that her complaints about mold date back to last year. She alleges that both Holly Ridge and Pendergraph Management ignored many of these complaints.

She alleged that Pendergraph Management failed to inform her of the health hazards in her house. The suit stated that in December 2022, Pendergraph sent an inspector to her apartment to test for mold. Paull alleges that Pendergraph told her that her apartment was safe, but refused to share the test results.

Paull also alleges that Pendergraph failed to properly remediate mold growth. The suit states that in January 2023, a contractor removed the sheetrock from her walls and found mold growing on her studs. According to Paull, Pendergraph ordered the company to spray an unknown chemical on the studs and replace the sheetrock. The following month, Paull reportedly found mushrooms growing from her walls. Another contractor recommended opening up her walls to inspect for mold. Paull said Pendergraph rejected this recommendation.

The suit states that Paull and her children are suffering major health issues as a result of living under hazardous conditions. One of her daughters is allegedly using a nebulizer to help with severe asthma, which Paull said has worsened since moving to the apartment.

The plaintiffs are bringing several counts against the defendants, including: breach of contract, breach of warranty of habitability, unfair and deceptive trade practices, negligence, and temporary recurrent private nuisance. They are also asking for punitive damages against the town of Holly Ridge and Pendergraph.

The plaintiffs did not indicate the exact monetary amount they're asking for, but given the jurisdiction, it will likely exceed $5 million.

The defendants have 21 days to issue a legal answer or counterclaim.

WHQR reached out to Pendergraph Management, the town of Holly Ridge, and attorneys representing the former tenants. Tenant attorneys and Pendergraph Management have not yet responded, but on Friday morning, Mayor Jeff Wenzel of Holly Ridge issued the following statement to WHQR: "We have been notified of the lawsuit. The Town's attorneys are reviewing it."

Read the complaint in its entirety below.

Nikolai Mather is a Report for America corps member from Pittsboro, North Carolina. He covers rural communities in Pender County, Brunswick County and Columbus County. He graduated from UNC Charlotte with degrees in genocide studies and political science. Prior to his work with WHQR, he covered religion in Athens, Georgia and local politics in Charlotte, North Carolina. In his spare time, he likes working on cars and playing the harmonica. You can reach him at nmather@whqr.org.