Toxic Mold and Internal Pollution

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Toxic Mold and Internal Pollution

• Presented by
• Joseph O. Collins, Jr.

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Sick Building Syndrome

• A product of tighter buildings
• Contaminents
• Formaldehyde (foam insulation)
• Fumes (paint and adhesives)
• Asbestos
• Carbon Monoxide
• Bacteria (Legionnaires Disease)
• Mold

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Sick Building Syndrome

• Molds
• Thousands of types
• Most are harmless
• Stachybotrys (black mold)
• Penicillium

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Sick Building Syndrome

• Symptoms
• Headaches
• Rashes
• Respiratory ailments
• Immune system compromise
• Lung disease
• Death(?)

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Case I Remediation Responsibility

• Remediation
• Locate source and cause of mold contamination
• Determine nature and extent of contamination
• Remove contaminated materials
• Eliminate and disinfect
• Repair

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Responsibility Causes of Moisture

• Construction defects
• Product defect (I.e., Drivet)
• Design defects
• Defective repairs
• Plumbing leaks
• Acts of God (floods, wind blown water)
• Insurers (failure to timely recognize claim)
• Property owner

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Owners Delimma

• Delays in determining responsibility of others
• Delays in acceptance of responsibility by others
• Delays caused by inability of others to respond
  to responsibility
• Delay exacerbates problems
• Responsibilities of others becomes owners

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Case II Owner Liability

• Owners Liability for Failure to Repair
• Time and moisture
• Responsibility for moisture vs. responsibility
  for mold growth
• Exculpatory provisions in leases no help
• Disclosure to Purchaser
• Disclosure to Lessees
• Knowing conduct

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Case III Insurance

• Property Insurance All Risks Coverage
• Owners CGL Insurance
• Builders CGL Insurance
• Builders completed operations coverage

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All Risk Insurance

• Water damage resulting from windstorm or hail
• Water damage resulting from sprinkler leakage
• Water damage resulting break or crack plumbing
  and appliance

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All Risk Coverage Issues

• Was policy in force?
• Plumbing and appliance leaks?
• 14 day exclusion Continuous or repeated
• Failing design, workmanship, or construction

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Contractors CGL Coverage

• Often excludes contractors own defective work
  business risk
• Pollution exclusions
• New mold exclusion endorsements

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Contractors Completed Operations Insurance

• Part of CGL Coverage
• Similar to Products Liability Insurance
• Generally pollution exclusion not applicable

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OSHA

• Air Quality Investigations
• OSHA jurisdiction over air quality
• Building owners and employees

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