Litigation
The Mold Threat
February 1, 2009
In this Electrical Contractor article, Timothy R. Hughes explains that mold litigation was increasingly being viewed as a major risk for contractors, landlords, property owners, architects, and other businesses involved in construction and property management. The article notes that mold claims had been compared by some commentators to asbestos litigation because of the potential for widespread personal injury allegations, property damage claims, and high remediation costs. Hughes explains that mold-related disputes often arise when there are water intrusion problems, poor ventilation, defective construction, or inadequate maintenance practices. He also highlights that contractors and design professionals may face claims not only for physical damage to a building, but also for alleged health effects suffered by occupants. The article appears to emphasize that mold-related liability can be especially complicated because cases often involve overlapping issues of insurance coverage, expert testimony, causation, contract obligations, and building codes.
Mold claims can create significant financial exposure because they often involve costly remediation work, business interruption, property damage, personal injury allegations, and disputes over insurance coverage. Hughes’s analysis shows why contractors, owners, landlords, and design professionals should respond quickly to water intrusion issues, document remediation efforts carefully, and review contracts and insurance policies to better manage mold-related risk.