RISK MANAGEMENT ISSUES

What Your Business Needs To Know
The spread of "Sick Building" litigation is on the rise and this upsurge relates to the presence of mold and other contaminants in buildings and the resulting disease commonly referred to as sick building syndrome (SBS). Sick building syndrome is often experienced when employees or residents of a building suffer acute health problems associated with time spent indoors. Symptoms and complaints of SBS include headaches; eye, nose and throat irritation; dry cough; dry, itchy skin; dizziness and nausea; difficulty concentrating; fatigue; and sensitivity to odors.

A Serious Threat
Awareness of the SBS issue is becoming more widespread. In 2003 Representative John Conyers (D. Mich.) introduced legislation requiring the EPA to prepare guidelines setting levels of toxic mold as dangerous or acceptable and proposing the government oversee the mold remediation industry. U.S. property damage claims due to mold damage are increasing, causing a six to 15% increase in insurance premiums. Corporate risk managers are now more closely watching related lawsuits, since SBS litigation is a huge potential threat to any company building or structure with walls, ceilings and floors.

Indoor Air-Quality Management Programs
Synatech's certified mold remediation specialists will design an Indoor Air-Quality Management program customized for your site. Synatech is Licensed, Insured and Board Certified by the Indoor Air Quality Council. This plan may be comprised of a program that can be as simple as one treatment to as inclusive as follow-up maintenance treatments and periodic investigations. Having a certified program in place reduces a company's risk and provides a healthy environment for its employees. Synatech is available to service most types of projects. No projects are too small or too Large.

Protect Your Company
You can help protect your company from the threat of SBS litigation. Call Synatech's certified and licensed experts, who specialize in restoring indoor air quality. Synatech offers a number of services including professional mold remediation, lead abatement and asbestos removal and abatement, as well as indoor air testing and air duct cleaning.

The Cost To Businesses Without Air-Quality Programs
Large expenditures are often necessary to repair or upgrade buildings. Preventing moisture sources and remediating mold or microbial contamination is a small expense compared to litigation and defense costs. It is therefore critical to anticipate, prevent, and quickly correct any cause of indoor air pollution.

Currently the true cost of litigation from indoor air quality (IAQ) cases is not known since the majority of these cases are settled out of court. However the following are some examples of publicly-documented IAQ litigation cases:

In the case of Melinda Ballard v. Farmers Insurance Group State court in Austin, Texas awarded Melinda Ballard and her family $32.1 million in June 2001. The $32.1 million award represents $6.2 million for replacement of the home and contents, $5 million for mental anguish, $12 million in punitive damages, and $8.9 million for legal fees. It has been reported that Ms. Ballard intends to pursue further legal action against Farmers for health-related claims.
Another case that generated enormous publicity was the $20 million lawsuit filed by television personality Ed McMahon against several companies in April 2002. The suit alleged that the insurer and adjusters inadequately handled remediation of mold following a burst pipe in McMahon's Beverly Hills, California home. McMahon also alleged that he and his wife suffered severe mold-related injuries as a result of the defendants' negligence and that mold infestation was a contributing factor in the death of their pet dog. The case has since been settled for $7.2 million.
A courthouse located in DuPage County, Illinois, was the cause of a number of suits involving hundreds of litigants. In 1991, shortly after law enforcement and judicial staff began to occupy the building, occupants began to suffer from symptoms characteristic of sick building syndrome (SBS). In late 1992 a number of the building's occupants filed a personal injury lawsuit against the architect, contractors, and HVAC contractors, alleging that their illnesses were caused by the design of the ventilation system and the presence of volatile organic compounds. The county then sued the architect and contractors, seeking $3 million for fixing the building's ventilation system.
On October 3, 2000, a California jury ordered Allstate Insurance to pay a policyholder $18.5 million in a coverage dispute over mold in the plaintiff's home in Placerville, California. The award included $500,000 in damages and $18 million in punitive damages. The trial judge reduced the award to $3 million. The case is being appealed.
In the case of Crane v. Bank of America, an Ohio hotel manager sued the hotel owners, alleging that he experienced adverse health effects subsequent to participating in remediation of toxic mold in the hotel. The lawsuit was filed in March 2000.
In 2001, 125 New York City families filed an $8 billion lawsuit against their landlord because they alleged a toxic mold spread sickness and possibly even caused the death of a 7-year-old girl who died from asthma-related causes.
In the case of Robert E. Coiro, et al. v. Dormitory Authority of the State of New York the plaintiffs sought punitive and exemplary damages in the sum of $50 million, as well as an additional $5 million for services lost. Coiro alleged that he suffered from personal injuries and pain and suffering as a result of employment with LaGuardia Community College at the premises owned by Dormitory Authority of the State of New York. The complaint, filed in Queens County Supreme Court, maintained that toxic mold and fungus, water leaks, unsafe and unsanitary conditions, improper ventilation, and other dangerous conditions in the building created "an unsafe, contaminated and dangerous environment, all to the plaintiff's detriment and loss."
In 2000 in the case of Spectrum Community Association v. Bristol House Partnership, The Spectrum homeowners association sued the developers and contractors in June 2000, alleging that construction defects caused the growth of toxic mold in walls and ceilings of the housing units. The homeowners claim that exposure to mold resulted in a variety of adverse health effects.
Employees of a California newspaper filed suit in September 2000 against the owner of their building, seeking $10 million for illnesses resulting from exposure to several types of toxic mold. J.J. Acquisition Corp. v. Pacific Gulf Properties
A class-action suit was filed by approximately 1700 students, parents, and teachers in the case of Andrejevic et al. v. Board of Education of Wheaton-Warrenville School District No. 200, DuPage County, IL. The plaintiffs are seeking $67 million for injuries caused by exposure to toxic mold and other indoor pollutants following a flood at the elementary school. The lawsuit, filed in July 1999, claims that the school district did not properly remediate flood damage, resulting in growth of the mold.
Three plaintiffs filed a suit claiming personal injuries stemming from exposure to mold and fungi in their workplace, an office building in Maryland. Injuries claimed include asthma and reactive airways disorder. The suit alleges that mold and fungi "were allowed to flourish" in the building's heating, ventilation, and air conditioning system. The complaint was filed in the Baltimore County Circuit Court in Maryland.
In the case of O'Hara v. Stangland et al.A Eugene, Oregon family sued general contractor Jeff Stangland, contractor Harvey & Son, and designer Michael Cockram for $3.5 million, alleging that faulty construction led to the growth of mold in their home and subsequent adverse health effects. Shortly before the start of the trial, Harvey & Son reached an undisclosed settlement with the O'Hara's. After the beginning of the trial, the claim was dropped and a cash settlement agreed to.
In California in 2001, insurance companies balked at issuing prospective policy holders homeowners insurance due to the "mold crisis." The legislature passed a bill called the "Toxic Mold Protection Act" requiring the State Department of Health Services to adopt specific regulations to protect the public health from mold.

For more information call 1-877-796-2832 and start breathing easier today.