Legally Speaking: Litigation or Mold? Which one is growing?

Mold may not seem to be a problem caused directly by a contractor and this an issue that a contractor would have to address.

Over the last few years, the national media has drawn increasing attention to the presence of mold. Mold is not a new problem, but as property owners are made aware that mold can cause serious heath problems, they are becoming more conscious of the presence of mold, and are more apt to look to contractors and insurance carriers for the cleanup and medical costs. The awareness of the presence of mold has increased mold-related litigation. The verdicts of these trials have also gained national attention. In June 2001, a Texas jury awarded $32 million to a family for damage to their home allegedly caused by mold. (Ballard v. Fire Ins. Exchange, No. 99-05252, Texas Dist.Ct,. Travis County, June 1, 2001).

Mold may not seem to be a problem caused directly by a contractor, and this an issue that a contractor would have to address. Mold typically isn’t discovered during construction, and if it is, it is a problem that isn’t directly related to construction. It is much different than a normal punchlist item. Further complicating the problem of mold-related litigation, is that insurance carriers have increasingly denied coverage under contractors general liability policies, thus leaving the contractors to defend themselves.