Facing a lawsuit from Central Florida homeowners alleging subpar electrical components in their brand new residences put them at risk for fires, a billion-dollar home services company founded by a congressional candidate says it will inspect properties that may have been impacted and install new parts that meet state and federal safety codes.
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The company named in the suit, Strada Services, is accused of substituting an unapproved electrical component in houses built during the COVID-19 building boom, when contractors faced a shortage of materials.
Strada Services was founded by Joe Strada, a Lake Mary Republican running to represent Congressional District 11, which takes in most of Lake County, parts of south and west Orange County and all of Sumter County.
Strada was the company’s president and CEO during the time when the plaintiffs say Strada Services installed inadequate electrical components in thousands of Central Florida homes.
The lawsuit accuses Strada Services of instructing its employees to lie to building department officials about the materials installed, violating state and federal building codes and putting homeowners at risk of fire, property damage and expensive repairs. Though the suit was filed in Osceola County Circuit Court, it is being transferred to the circuit’s business court, which specializes in complex business cases.
The plaintiffs are the owners of four homes in Polk, Osceola and Lake counties, but they say more than 35,000 homes were affected. Those properties are located in more than a dozen counties, including Orange, Seminole and Volusia.
A letter from Strada Services’ attorney last month says the company “is committed to addressing these matters responsibly and efficiently,” though it did not admit liability or waive the right to defend itself against the allegations.
“Strada’s remediation efforts are designed to protect the safety of Florida homeowners and their families and to restore code-compliant electrical grounding systems,” attorney Monica Brownewell Smith wrote in a Sept. 25 letter to the plaintiffs’ attorneys.
But just three days earlier Brownewell Smith wrote in an email that the company “has not located a list of homes” where the subpar parts may have been installed, and that Strada Services was “continuing its efforts to identify the homes at issue.”
Brownewell Smith, who is based in Indianapolis, did not respond this week to an email seeking comment about why the company’s stance had shifted within days.
Strada Services is seeking to delay the lawsuit, halting discovery and a potential trial, based on a Florida law that requires plaintiffs to alert the company of construction defects at least 60 days before filing a suit. The plaintiffs did not provide the legally required notice until two days after the complaint was filed, according to a motion filed by the company’s attorneys on Sept. 22.
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Strada no longer manages the day-to-day operations of Strada Services, Forbes reported last month in a profile of the candidate. He currently serves as the executive chairman and retains a 45% stake in his eponymous company, which accounts for a large part of his net worth, which the publication estimated at $800 million.
A political newcomer, Strada made a splash when he entered the congressional race and then immediately loaned his campaign $5 million, committing at least $1 million to a TV ad campaign called “Full of Crap,” which is his view of Washington, D.C.
If Strada wins the November general election, Forbes reported he would likely become the wealthiest member of Congress.
From mid-2020 to mid-2022, Strada Services used copper-coated, steel core wiring for the grounding electrode conductor, which is intended to provide a safe path for electricity to travel to earth in the event of a fault or surge, according to the suit. Building codes require this piece to be made of copper, aluminum, or copper-clad aluminum.
“The wire looks like copper. It is not,” the complaint reads. “That impostor wire can overheat, arc, and fail — leaving families and property unprotected.”
Brownewell Smith’s letter did not indicate how many homes the company intends to inspect.
“We certainly are hoping the number of homes that are impacted by this are as small as possible,” said Michael Kelley, an Orlando-based attorney representing the plaintiffs.
If homeowners are worried subpar materials might have been used on their property, they can locate a thick wire running from their home to the ground and try placing a magnet close to it, Kelley said. If the copper-clad steel wiring was used in their home, the magnet will stick to it.
Strada has not responded to or has declined multiple interview requests from the Orlando Sentinel about his campaign and the lawsuit.
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