City Homes Inc., which rents more than 300 Baltimore apartment units to low-income tenants and faces a wave of lead paint lawsuits, has filed for chapter 11 protection, the Wall Street Journal reported today. Facing legal judgments worth several million dollars in prior lead paint lawsuits and more litigation on the horizon, the Baltimore company is hoping to take advantage of the breathing room offered in chapter 11. “As a result of the 70 pending lead paint lawsuits and the many more anticipated, the companies must stabilize their affairs and consider all options going forward,” City Homes President Barry Mankowitz said in court papers filed on Tuesday. Past legal judgments against City Homes include $2.5 million awarded to two siblings in November 2009. Their mother moved to a City Homes rowhouse after finding out one of the children was exposed to lead in a previous rental unit; she said that City Homes had assured her that the home was safe. Another case resulted in a $5.1 million judgment against City Homes that was later reduced to $1.25 million.
