2. Toxic Mold and Internal Pollution Presented by: Joseph O. Collins, Jr.

3. Sick Building Syndrome  A product of “tighter” buildings  Contaminents  Formaldehyde (foam insulation)  Fumes (paint and adhesives)  Asbestos  Carbon Monoxide  Bacteria (Legionnaire’s Disease)  Mold

4. Sick Building Syndrome  Molds  Thousands of types  Most are harmless  Stachybotrys (black mold)  Penicillium

5. Sick Building Syndrome  Symptoms  Headaches  Rashes  Respiratory ailments  Immune system compromise  Lung disease  Death(?)

6. 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

7. 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

8. 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

9. 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

10. Case III – Insurance  Property Insurance “All Risks” Coverage  Owner’s CGL Insurance  Builder’s CGL Insurance  Builder’s completed operations coverage

11. “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

12. “All Risk” Coverage Issues  Was policy in force?  Plumbing and appliance leaks?  14 day exclusion – “Continuous or repeated”  Failing design, workmanship, or construction

13. Contractors’ CGL Coverage  Often excludes contractor’s own defective work – “business risk”  Pollution exclusions  New mold exclusion endorsements

14. Contractors’ Completed Operations Insurance  Part of CGL Coverage  Similar to Products Liability Insurance  Generally pollution exclusion not applicable

15. OSHA  Air Quality Investigations  OSHA jurisdiction over air quality  Building owners and employees