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Toxic Mold and
Internal Pollution
Presented by:
Joseph O. Collins, Jr.
Sick Building Syndrome
A product of “tighter” buildings
Contaminents
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Formaldehyde (foam insulation)
Fumes (paint and adhesives)
Asbestos
Carbon Monoxide
Bacteria (Legionnaire’s Disease)
Mold
Sick Building Syndrome
Molds
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Thousands of types
Most are harmless
Stachybotrys (black mold)
Penicillium
Sick Building Syndrome
Symptoms
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Headaches
Rashes
Respiratory ailments
Immune system compromise
Lung disease
Death(?)
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
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
Owner’s 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
owner’s
Case II – Owner Liability
Owner’s 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
Case III – Insurance
Property Insurance “All Risks”
Coverage
Owner’s CGL Insurance
Builder’s CGL Insurance
Builder’s completed operations
coverage
“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
“All Risk” Coverage Issues
Was policy in force?
Plumbing and appliance leaks?
14 day exclusion – “Continuous or
repeated”
Failing design, workmanship, or
construction
Contractors’ CGL Coverage
Often excludes contractor’s own
defective work – “business risk”
Pollution exclusions
New mold exclusion endorsements
Contractors’ Completed
Operations Insurance
Part of CGL Coverage
Similar to Products Liability
Insurance
Generally pollution exclusion not
applicable
OSHA
Air Quality Investigations
OSHA jurisdiction over air quality
Building owners and employees