A Toxic Mold Nightmare

In 2001, Renee and Paul Haynes began building their dream home in Oregon City, OR because they needed more space for their two toddler sons. The couple did much of the construction work themselves to save money, but they paid to have the building professionally framed. The framing was done in December, Oregon’s wettest month.

The family moved into their new home in March, and almost immediately, all began to feel sick. Four months after they moved in, everyone in the family was ill: the children had diarrhea, nausea, vomiting, and breathing problems. Renee suffered from dizziness and numbness. While working around the house, Paul Haynes accidentally knocked a hole in the wall and realized the insides of their walls were soaking wet. Tests confirmed that the walls were full of toxic mold. Three years later, a jury awarded them $489,000 in damages from their building contractor, but by then, both boys had suffered permanent neurological damage. The dream home was deemed uninhabitable and had to be burned down.

Successful Toxic Mold Litigation

Many toxic mold victims have successfully sued their insurance companies, landlords, builders, and employers for losses they suffered due to toxic mold:

• Television celebrity Ed McMahon agreed to a settlement of $7.2 million after suing his insurance carrier for what the suit called ineffective cleanup after a water pipe burst. McMahon said the resultant toxic mold made him and his wife ill and contributed to the death of the couple’s dog.
• Three people with disabilities in Baltimore, MD were awarded $375,000 from their landlord, the Housing Authority of Baltimore City. A jury ruled the housing authority failed to adequately repair roof leaks and plumbing problems that led to toxic mold infestation in one of their buildings.
• A judge awarded $270,000 to renters in a St. Mary’s County, MD apartment complex, saying their landlord had failed to respond to tenant complaints about water problems and had failed to maintain a safe living environment. The suit contended that plumbing problems had led to water damage and toxic mold, causing several tenants to become ill and require hospitalization.
• Twelve immigrant families in Alameda County, CA were awarded $1.3 million after suing their landlord for failing to eradicate toxic mold spawned by roof leaks in their apartment building. The tenants suit claimed they suffered from chronic sinus and upper respiratory problems because of the mold.
• A jury awarded two Delaware women $1.04 million for the asthma attacks they suffered when their landlord failed to repair leaks, resulting in toxic mold. A higher court upheld the award.
• A Texas homeowner received $4 million after a judge found his insurance carrier had acted in an unfair, fraudulent, and deceptive manner when evaluating for mold.
• A California homeowner won $3 million from a judge after his insurance carrier refused to honor his claim for mold damages.

Many employees have successfully sued their employers, which have included government agencies and school districts, because of illnesses they suffered from working in mold-contaminated areas. Thousands of lawsuits concerning toxic mold are pending in the courts nationwide. The number of suits grows exponentially every year as awareness grows about the problems of toxic mold.

This article contains information about mold lawsuits but is not intended as a substitute for qualified legal advice. If you would like to be put in touch with an attorney who has experience in handling mold-related claims, please fill out the form on this page to contact us for a referral.

Mold Damage and Your Insurance Policy

Mold remediation can be expensive; in some cases, it can cost more than $150 per square foot to treat a home for mold, which is about 10 times the cost of simply tearing out and replacing building material damaged in some other way. Many mold claims in California have been settled for more than $500,000, with a few claim settlements reaching into the millions.

Many policies have built-in exclusions that deter mold claims:

• Mold that grows as a result of flood damage might be disallowed if the policy does not cover flood damage, a common homeowner policy exclusion for properties in flood plains.
• Some insurance companies consider mold damage a failure by the homeowner to perform expected, routine home maintenance, because mold grows a little at a time.
• Your policy might include an exclusion specifically targeting mold.

Some insurance commissioners are sensitive to the issue of toxic mold, but your local agent might not be.

Mold Inspection After Flooding

If your property is damaged by flooding, it’s important to have a mold inspection as soon as possible. Mold inspectors can detect mold that is present, as well as point out areas of water damage that will become susceptible to mold if they are not properly dried out or treated.

An inspection by a certified mold inspector confirming the presence of toxic mold might become a vital part of your insurance claim. A professional inspection is also recommended after water damage in your home from any cause.

Legal Help if Your Mold Claim is Denied

Negotiating a settlement with your insurance company requires great patience and preparation. Be prepared for a series of meetings with insurance representatives, and expect that you might have to compromise about what you feel is a fair settlement. To improve your chances, you must:

• Keep careful records of all expenses related to your mold damage, including dates and amounts.
• Track down receipts for any items within your home that were damaged by mold.
• Document every contact with the insurance company or its representatives; send registered letters to follow-up on any phone calls.
• Be sure to present your claim within the time frame and in the correct form specified by your insurance contract as well as state law.

At some point in this process, depending on the complexity of your claim, you might decide to find legal assistance. Mold lawyers are familiar with case law concerning mold claims as well as all local and state ordinances that might affect your claim.

Some attorneys will accept your case on a contingency basis, working in exchange for a percentage of the eventual settlement. It is possible to handle your mold claim by yourself, but it’s safe to say that the biggest settlement awards have gone to cases where homeowners had legal assistance. The more serious and complicated your case is, the more you are likely to benefit from legal advice.

This article is for information purposes only and is not a substitute for legal advice. If you would like to speak to an attorney who has experience handling mold-related cases, please use the form on this page to contact us for a referral.

For More Information

Your state’s insurance department is a good source of information about how mold claims are handled in your area. The National Association of Insurance Commissioners lists insurance department contact information by state.

Mold Inspection and Home Buyers

Buying a home infested with toxic mold can cost you thousands of dollars in clean-up fees. Some mold problems cannot be eradicated, which would leave you with a house that could not ever be lived in or resold.

If you’re in the market for a new place to live, take a thorough tour of the property and search for any signs of water damage, which might have created hidden toxic mold. Seriously consider having a professional mold inspection before you buy, especially if the property is in the most humid states — Florida, the Gulf Coast, and the Pacific Northwest — or if the property lies within a flood plain. Tell your real estate agent that you want your offer to buy a house to have a contingency clause that the house be certified mold-free; if an inspection uncovers mold, your offer can stipulate that you have the option to back out of the negotiations without penalty.

Mold Cleanup Advice for Property Owners

Before you put your property on the market or put up a For Rent sign, check the living and storage spaces for hidden mold. If you find any indication of dampness or water damage, consider having a professional mold inspection. It’s better to discover a problem and clean it up before you enter into any property transaction. Don’t think about painting or plastering over mold; you cannot kill mold this way, and you might even be giving mold the conditions it needs to thrive. Either take all necessary safety precautions and do the cleanup yourself, or hire a professional mold eradicator.

Some states now require “mold disclosure” notices from people who want to sell or rent their property, advising prospective buyers or tenants about the possible dangers and alerting them if mold previously has been found and eradicated on the property. Find out what laws apply in your area to protect yourself from future liability.

If you would like to be referred to an attorney with experience in handling mold-related legal issues, please fill out the form on this page.

Builders and Agents

If you are building your home or contracting to have one built, consider ventilation and air circulation to prevent mold. Choose mold-safe building materials, such as drywall that has no paper liner. Consider drainage of the land around your home, and take adequate measures to seal your foundation against water leakage. Best practices for builders include keeping moisture out and being sure moisture that does occur in the house is not trapped, but can evaporate quickly and naturally.

If you are a real estate agent, be especially cautious about determining whether mold is or has been present in any property you represent. A 2002 Louisiana State University sampling of 1,000 random real estate agents found that 19 percent of them already considered toxic mold a serious issue in their businesses. As mold awareness has increased, that number undoubtedly has increased as well.

If you become ill because of toxic mold in your rental unit, you might have to convince your landlord that mold cleanup is his/her responsibility.

A Sick Building: Symptoms of Mold at Home

The symptoms of a sick building — a house or apartment where the indoor air quality is poor because of contamination by toxic mold — are often apparent. Visible black mold growing on ceilings, walls, or floors is a sign that the place where you live might be sick.

Do a thorough mold inspection of your apartment, ideally BEFORE you sign a lease agreement:

• Check for black staining on walls and ceilings, or small areas that have been painted over.
• Inspect all areas near water sources, including kitchen and bathroom sinks, toilets, water heaters, washing machines, and air conditioning units.
• Check porches, basements, and storage areas where debris might be holding mold.
• Be aware of any odor of mildew or mustiness that often accompanies carpet mold.

Perform your inspections with your landlord or rental agent by your side; make notes of any evidence of mold you find. Videotape your inspection, if possible. If you have concerns about mold in a place you’re considering renting, ask the property owner to include a guarantee of mold remediation with your lease agreement.

Sadly, the first symptoms of a sick building are often medical symptoms that show up in the people who live there. You might have no idea that a property is contaminated with toxic mold until you have lived there for weeks or months. Be alert to medical symptoms that began or changed when you moved into your home. Chronic sinusitis, repeated sneezing, skin rashes, and headaches can be signs that you are being exposed to toxic black mold where you live.

Mold Inspection and Remediation

The first step to resolving a mold problem is to notify your landlord, in writing, by certified mail, of your concern. Keep documentation of every conversation you have with the landlord about your mold concerns. These documents will become important if you end up in court to resolve the issue.

Ask your landlord for a professional mold inspection; if mold is found, insist on professional mold remediation. Some landlords will try to resolve a mold problem themselves, unaware that the process of cleaning and removing mold often releases more mold spores into the air, where they will affect both the cleaner and the residents who have to live there.

If your landlord is unwilling to resolve the toxic mold problem in your house or apartment, be prepared to move to a safer living space. If moving means breaking your lease or rental agreement, you might need the help of an attorney to keep from being penalized.

If you own a condominium or townhouse, your Homeowners Association might be willing to intervene on your behalf with the property owner. The Homeowners Association bylaws might specify who is responsible for mold remediation.

Landlords and Mold Laws

In many states, landlords are required by law to disclose to prospective tenants if they know a property has a mold problem. In some states, they must also disclose if a property has had a mold problem that has been cleaned up and resolved. Your local health department will have information about what local and state laws apply to landlords and mold.

Most states require property owners who rent out living spaces to maintain those living spaces in safe condition, but the laws vary greatly on whether mold must be considered a health hazard. Again, the local health department will be able to tell you where your state and local governments stand on assessing mold health risk.

If you caused damage to your rented unit that resulted in mold — for example, if you let water overflow the bathtub or left windows open during a rainstorm, which caused mold infestation — your landlord probably cannot be held responsible for mold remediation in those areas.

If you have suffered monetary losses from mold in your living space, because of medical bills or lost wages, you might be able to hold your landlord fiscally responsible. A landlord-tenant lawyer might be able to resolve a disagreement between you and your landlord about who should pay for mold-related repairs and medical bills. If your landlord doesn’t comply, consult a mold lawyer or an attorney who specializes in mold personal injury claims for information.

If you would like to be referred to an attorney with experience in handling mold legal issues such as these, please fill out the form on this page.

Tips for Landlords

• Know your legal responsibilities concerning mold in your rental units.
• Inspect your property regularly for mold.
• If you discover mold, act on it immediately; advise your tenants of the problem and what you are doing to resolve it.
• Do not try to cover mold with paint, flooring, or wallpaper.
• Stipulate in any lease that the tenant must tell you immediately if any water damage occurs.
• Never knowingly rent mold-infested property to tenants; consider your future liability.

Tips for Tenants

• Inspect the rental unit before you sign anything.
• If you find mold, insist on professional mold inspection and remediation before you move in.
• If you suspect you are already living in a mold-infested property, contact the landlord and insist on professional mold inspection and remediation. Document your contacts with the landlord about this issue.
• Be prepared to move. Do not live in mold-infested property. Contact a landlord-tenant attorney or a personal injury attorney specializing in mold lawsuits if your landlord won’t let you break your lease.

Symptoms of a Sick Building

In Las Vegas, a 56-year-old man is permanently disabled, struggling for breath, his skin covered in sores, his mind unable to process simple information. His doctors say he suffers from fungal infections caused by both Aspergillus and Stachybotrys mold after several years of toxic black mold exposure at work. Dan Paulus worked in a sick building, and even his local health department officials didn’t recognize the danger. In fact, Paulus is a health department official. His office was inside the city’s Health Department building.

What is a sick building?

Any building where the indoor air quality is so poor that it affects the health of people who live or work there.

Indoor air can become polluted by chemicals, such as the outgassing from building materials, or chemicals that are carried in on dry-cleaned clothing or cleaning products. But the building where Dan Paulus worked was contaminated by a biological toxin: toxic black mold.

In many cases, the only signs of a sick building are medical symptoms developed by people who live and work there. If one employee is diagnosed with a fungal infection from mold exposure, all co-workers should consider whether their health problems — chronic respiratory infections, rashes, dizziness, etc. — might also be linked to mold exposure. A sick building is likely to be making everyone inside sick, although some people will react more severely than others.

Sick buildings can be caused by new construction materials and water damage, but also by:

• HVAC systems that cycle off when the building is closed for the night, allowing humidity to build and condense.
• Inadequate air conditioning and ventilation systems.
• Underground moisture that seeps into the building through inadequately sealed building foundations.

Buildings with indoor water features, such as swimming pools and fountains, can have poor indoor air quality (IAQ) unless the air conditioning and ventilation systems are big enough to handle the extra humidity caused.

What If I Work in a Sick Building?

Sick buildings can be “cured” in many cases by mold removal. If you suspect you are working in a sick building, speak to your manager or the company owner and voice your concerns. Sometimes several employees must band together to pressure management to have a professional mold evaluation of the building. If toxic mold is discovered, the inspector will be able to suggest the kind of mold remediation that will be required.

Curing a sick building might involve cleaning heating and air conditioning ducts, repairing structural leaks, and replacing ceiling panels, wallboards damaged by leaks, or replacing the carpet. Business in the building might be disrupted for days or weeks while the work is done, but improved indoor air quality will benefit everyone who works in the building — including managers.

Government Regulations, OSHA, and Mold

The American Conference of Governmental Industrial Hygienists (ACGIH) and many other U.S. federal agencies have documented toxic mold as a danger in the workplace. The Environmental Protection Agency has issued a bulletin, Mold Remediation in Schools and Commercial Buildings that addresses the issue. But as of this date, there is no American federal regulation specifically dealing with mold. OSHA, the federal government’s Occupational Safety and Health Administration, has no clear-cut guidelines or “mold standard” to use in evaluating complaints about mold in the workplace, although it has published A Brief Guide to Mold in the Workplace as a Safety and Health Information Bulletin. Disclaimers within the bulletin specify that the OSHA information does not create any legal obligation on the part of the employer, but also reminds employers that they are bound to provide employees with a workplace free from hazards.

Although workplace safety issues normally come under the jurisdiction of OSHA, other federal agencies have attempted to nail down the employer obligations concerning mold in the workplace. The American Society of Safety Engineers is working on developing a standard to protect workers during mold remediation; the standard will recommend procedures to minimize worker exposure to mold, but will not set a maximum acceptable level for mold that would automatically trigger remediation. The federal Environmental Protection Agency (EPA) has published guidelines for indoor air quality entitled “Mold Remediation in Schools and Commercial Buildings.” The EPA considers toxic mold a form of air pollution.

But although many local governments are waiting to see what stand OSHA will eventually take, other states and cities have developed their own mold legislation that might serve to protect workers in sick buildings. New York City has had toxic mold guidelines since 1992.

The proving ground for state regulations concerning toxic mold is often the state Worker’s Compensation programs. Workers injured by toxic mold in the workplace can file claims for compensation for their lost wages and medical costs, just as workers can if they are injured by anything else at work. Such claims force state legislatures to consider and decide about the validity of toxic mold injuries.

State-by-state guidelines on mold legislation are available from the Center for Disease Control.

To be referred to an attorney who has experience in handling this type of mold-related claim, please fill out the form on this page.

Unless your homeowner’s policy specifically excludes toxic mold, claims for toxic mold should be handled in the same timely manner as any other claim. The insurance industry has been overwhelmed by claims for toxic mold damages in the past 10 years, and many insurance companies do not respond to claims for toxic mold damage unless they are compelled to do so by a court order.

If you are a tenant, your landlord is responsible for maintaining a safe and wholesome living unit, which includes keeping it free from mold. But you might have to file a lawsuit to compel your landlord to address toxic mold issues in the home you rent.

Who Has Toxic Mold Laws?

There is no federal law covering toxic mold in the home, but many states and some municipalities do have laws covering toxic mold in public buildings or homes. California is on the cutting edge of laws governing how toxic mold issues are handled, but some other states have no toxic mold laws, and others have passed legislation to protect building tradesmen, real estate agents, and others from liability for mold damages.

Health problems resulting from mold exposure are considered personal injuries and can be handled as personal injury lawsuits.

If you purchased a product — for example, a water heater — that was defective and caused flooding and resultant mold damage, or if you lost money because you unknowingly purchased a mold-contaminated home, or because you had to spend money to live somewhere else while your home underwent mold remediation; those losses are considered civil wrongs, or “torts.” A tort can become the basis for a lawsuit.

If You Have Mold-Related Losses

Your first course of action whenever you feel you’ve been wronged financially should be to talk directly to the person who can resolve the problem. Start with your insurance agency, your landlord, or whomever you believe is responsible.

Document every contact you make about this matter, including the time, day, date, what was said by both parties, and any promises made. End every such conversation with a firm date by which the next action should be accomplished and document that date. If you have these conversations by phone, follow with a letter recapping what was agreed upon. Save copies of all letters.

Hire a mold inspector or mold remediation professional to test for the presence of toxic mold in your home and the scope of the problem. You will need firm evidence that a problem exists if you later take the matter to court.

Keep records of every doctor visit, every prescription, and every lost day of work. Tell your doctors and your employer that you believe you have been exposed to toxic mold, so that fact is noted in their records.

Keep receipts for relocation and any other expenses that arise from your mold problem.

Talking to a Mold Attorney

The experts in local law as it relates to toxic mold are local personal injury attorneys. Attorneys who deal specifically in mold issues can be found in every state.

If you have evidence that you have suffered any kind of loss because of toxic mold, talk to a mold attorney about possible litigation. He or she can give you specific instructions on what else you should do to establish a case. Some attorneys will work on a contingency basis, trading their services for a percentage of any award you receive.

If you are buying, selling, or building a house — especially in an area where mold is a common problem — consult an attorney before signing any contracts, so you can take the appropriate measures to protect yourself in case the house has hidden mold that later becomes a problem.

This article is not intended to provide legal advice; the best source for such advice is an attorney with experience in handling mold-related legal issues. If you need help locating an attorney with this kind of experience, please fill out the form on this page to contact us for a referral.