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Mold And Litigation

In the past few years there have been an increasing number of settled and pending lawsuits involving mold contamination in residential real estate.

The frequency of hidden mold growth in property claims relating to mold/microbiological contamination has risen dramatically in recent months in residential litigation. In fact, there are hundreds of unsettled mold cases pending across the nation. A March 12, 2001 article in the Sacramento Bee summed up the mold issue by saying, “From home builders…to residential real estate brokers, mold is causing headaches and costing big bucks because of protests over health concerns, lawsuits and the expense of identifying and remedying mold contamination.” 

Even in the absence of substantial agreed upon mold exposure limits and a lack of conclusive evidence of health effects, there have been many settlements with significant financial penalties placed at the feet of defendants. Below are a few of the more visible judgments and settlements awarded in mold cases.

Judgments
$1,353,000 – Beach house owners vs. Building contractor – Malibu, CA, 2001 
$1,400,000– Elizabeth Stroot vs. New Haverford Partnership – New Haverford, DE, 1999
$32,000,000 – Ballard Family vs. Farmers Insurance Group – Dripping Springs, TX, 2001

Settlements
$545,000 – Three Families vs. Homeowners Association – Alameda County, CA, 2000
$600,818 – Rialto Family vs. City of Rialto – Rialto, CA, 1998 
$1,500,000– Charles Blum et al, vs. Chubb Insurance – Corpus Christi, TX, 2001

Because most of the aforementioned cases have involved recovery of property damages, repair and remediation, punitive damages, and compensation for personal injury, it is difficult to determine the exact amount paid for each category of damage. As a result, it is difficult to estimate an average repair cost per contaminated property.

Mold - Overview   What is It?   Health Effects   Types   Conducive Conditions

 Screening   Media   Litigation