Legal Action for Extensive Mold Troubles

Mold problems have become more prevalent because of increased use of cheaper building materials like plasterboard and plywood, which are more prone to growing mold when wet. Mold, as always, is spreading, but so is mold litigation, to the consternation of the insurance industry." A state court in Austin, Texas, awarded Melinda Ballard and her family $32.1 million in a case involving allegedly extensive mold damage to their Dripping Springs, Texas house. The jury ruled that Farmers Insurance Group had failed to properly address Ms. Ballard's original water-damage and mold claim and committed fraud in its handling of her claim," noted Christopher Oster, "Insurers Blanch At Proliferation of Mold Claims," Wall Street Journal, June 6, 2001.

Toxic Mold Lawsuits

"Toxic mold lawsuits are spreading as fast as the fungus among us. Plaintiff's attorney Alexander Robertson IV, of Woodland Hills, California, had his first toxic mold case in 1994, when he represented an unidentified actor and his wife whose million-dollar home in Malibu was overrun with slimy [deadly toxic mold] Stachybotrys that was harming their health. The case was settled for $1.35 million. Robertson has since represented about 1,000 plaintiffs and he fields calls daily from across the country," according to Fox News article "Lawsuits Multiply over the Fungus Among Us" by Adrienne Mand, in an article dated Oct. 12, 2000.

Centex-Rooney Construction Co.

Toxic and non-toxic molds have generated litigation for construction defects in commercial buildings and for personal injuries to individuals. The suits have been filed against contractors involved in the maintenance of HVAC systems. One such case involves the Martin County Courthouse in Florida
(Centex-Rooney Construction Co. Inc. et al. v. Martin County, Florida).

Centex-Rooney entered into a construction management agreement with Martin County in 1985 to serve as the manager of construction of the courthouse and adjacent buildings. Centex assumed complete control over the site and project, including the selection of all subcontractors and the management and inspection of all their work. Centex completed the project in 1988; however, in early 1989 the county made several complaints to Centex about window and exterior wall leaks, mold growth, and excessive humidity.

The complex was evacuated in December 1992 after more than 50 percent of its 218 employees developed sick building syndrome (SBS) symptoms. The jury awarded $14 million to the county for the existing damage to the courthouse facilities.