legal & technical issues how mold affects: –real estate –building operations –contractors...

Legal & Technical Issues

Legal & Technical Issues

• How mold affects:– Real Estate– Building Operations– Contractors

• Basics

• Additional considerations

How Mold Affects Real Estate Transactions

50% of 2001 litigation50% of 2001 litigation Attorneys and courts are attempting Attorneys and courts are attempting

to make it an issue for home to make it an issue for home inspectors and realtorsinspectors and realtors

New buyer experiences symptomsNew buyer experiences symptoms Home testing occurs/mold discoveredHome testing occurs/mold discovered Doctor orders buyer to move outDoctor orders buyer to move out

How Mold Affects Real Estate Transactions

– Testing expert says water problem was apparent and should have been disclosed

– Buyer sues home inspector and realtor

Claims Are Based Upon

• The allegation that inspectors & realtors know or should have known about mold and its effects on property and disclosure should have been made to the buyer

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environmentaleducation.com

How Mold Is Effecting Facility Operations

20% of 2001 Litigation20% of 2001 Litigation Attorneys and courts are attempting Attorneys and courts are attempting

to make it an issue for employers & to make it an issue for employers & facility managersfacility managers Employee experiences symptomsEmployee experiences symptoms Investigations occurs/mold discoveredInvestigations occurs/mold discovered Employer responsible for employee Employer responsible for employee

healthhealth

How Mold Is Effecting Facility Operations

– Employer sues building owner for failing to provide suitable space and lost production

– Building owner pays to make repairs, clean building and settle lawsuit

How Mold Is Effecting Contractors

20% of 2001 Litigation20% of 2001 Litigation Attorneys and courts are attempting Attorneys and courts are attempting

to make it an issue for renovation to make it an issue for renovation and specialty contractors and specialty contractors Renovation/repair occursRenovation/repair occurs Investigations occurs/mold discoveredInvestigations occurs/mold discovered

– Building owner sues contractor for contaminating structure

– Contractor pays to make repairs, clean building and settle lawsuit

How Mold Is Effecting Contractors

• Statutory law

• Common law

• Contracts

• Insurance

• Bonding

Legal & Insurance Basics

Statutory Law

• NYS regulations• OSHA worker protection

regulations• Other regulations

Common Law

• Standards of the Industry

• State of the Art

• Tort & Negligence

• Vicarious Liability

Contracts

• Contract documents

• Public works projects

• Record-keeping

Insurance

• Workers’ compensation•  Liability coverage

– Occurrence based– Claims Made

•  Errors & omissions• Product liability•  Other concerns

• Payment Bonds

•  Performance Bonds

•  Issues Obtaining Bonding

Bonding

Additional Considerations

• Will mold activities disturb other environmental contaminants?– Asbestos (e.g. ceilings, insulation, etc)– Lead based paint