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TOXIC MOLD OVERVIEW
Toxic Mold Overview
By John Rapp And Gerry Harris, CPCU
John Rapp is an Environmental Scientist and
Microbiologist, and Gerry Harris, CPCU, is a Senior Manager.
They are actively
involved in the investigation and evaluation of Toxic Mold
matters.
In California, a jury ordered Allstate Insurance to
pay a policyholder $18.5 million for acting in bad faith in
a coverage dispute over mold in the plaintiff’s home.
Anderson v. Allstate Ins. Co.
A North Carolina motel owner recovered $6.7 million
from contractors after construction defects led to mold
infestation.
Lawyers Weekly
February 5, 2001
Two class action suits have been filed against the
owners of several apartment buildings in San Francisco
alleging injuries and damages arising from exposure to toxic
mold.
San Francisco Gate
February 2, 2001
An employee of a community college in New York has
filed suit seeking $65 million for injuries and damages
arising from exposure to toxic mold.
Mealey’s
Litigation Report Mold February 2001
"Toxic Mold...The Next Asbestos"
headline from Lawyers Weekly October 2, 2000
News stories like these are becoming more
common each week as America appears to be under siege by toxic
mold.
What Are Molds?
Fungi, including mushrooms, molds, mildews,
and smuts, are a group of plants that obtain nutrients from
organic matter. This may be accomplished by parasitizing living
organisms or utilizing nutrients absorbed in liquid form from
dead/decaying plant or animal matter. The organic substances
used as nutrient sources by fungi are quite diverse and include
materials such as fruits, vegetables, wood, and jet fuel.
In the competitive world of microorganisms,
certain species of fungi prosper by adapting to environmental
niches not well developed by other organisms. In the past, this
has included infestations of the plants eaten by wild and
domestic animals as well as the crops cultivated, stored, and
consumed directly by man. The closeness of the relationship
between humankind and fungi has led to notable outbreaks of
illness throughout history.
At one time, many of the commoners living in central
Europe ate rye bread two or three times each day. In 857 AD,
there was a very large outbreak of illness characterized by
tingling, fever, cold extremities, stomach pain,
hallucinations, gangrene, and convulsions. The illness was
caused by consuming bread made with rye contaminated with a
type of fungus known as ergot.
The unusual behaviors that led to the Salem witch trials
have been attributed to hallucinations caused by eating
grain contaminated with high concentrations of fungal toxin
produced during a particularly wet year.
In a 1921 English study entitled The Health of the
Industrial Worker, researchers Collis and Greenwood
identified the probable cause of an asthma or spasmodic
cough affecting cotton weavers and others in the industry as
the inhalation of the spores of Aspergillus which formed
from time to time on the cotton thread.
The 1922 edition of Veterinary Bacteriology
by Buchanan noted that several investigators had claimed the
production of "powerful toxic substances of some kind
(possibly true toxins)" by Aspergillus
fumigatus grown in artificial media.
A New York State Industrial Bulletin published in 1939
noted that dusts bearing the mycelia and spores of parasitic
fungi were known to cause "annoyance and discomfort".
In today’s urban settings, certain fungi have
adapted to environments associated with construction materials,
heating and air conditioning systems, furnishings, and floor
coverings in the buildings in which we live and work. Dirt
within these buildings is also a source of nutrients for fungi.
Modern construction
techniques employed in the United States, and elsewhere, call
for the frequent use of wallboard materials that include plywood
and wood pulp as well as gypsum board (a prefabricated form of
traditional wet plaster that is cast between paper facings).
Although gypsum board is >80% calcium sulfate dihydrate (the
gypsum mineral plus water) by weight, it also contains materials
that can be utilized by some molds as nutrients, i.e.
Recycled paper (cellulose) which may account for as much
as 15% of gypsum board by weight.
Starch (as much as 3% of gypsum board by weight)
Paraffin wax for water-resistant sheeting, exterior, and
shaftwall liner gypsum panels (as much as 2% of gypsum board
by weight).
It should be noted that regardless of the
specific environment in which they become established, the
general structure of mold remains the same. A young mold
consists of long, highly branched thread-like linear groups of
cells (hyphae) that intertwine to form the fungus body
(mycelium). These "threads" can penetrate many of the materials
upon which they grow, including drywall, wallboard, wallpaper,
insulation, and ceiling tiles (all of which contain organic
material that are sources of nutrients). As the mold matures, it
produces spores. The spores are very light and will float in the
air until they settle on some surface where they will remain
until they begin to grow or the air is disturbed.
In addition to nutrients, molds generally
require only an appropriate temperature (between approximately
40 and 100 degrees F), and adequate moisture for growth. So when
a spore comes into contact with material having
sufficient warmth, moisture, and nutrients, it will germinate.
It should be kept in
mind that molds do not require saturated conditions to
grow…although ignored water damage or similar environments may
support mold growth, growth can also occur when high relative
humidity and/or the ability of building surfaces to absorb and
retain moisture create similar conditions.
For example:
The living activities of a family of four can add more
than 18 gallons of water a week to the air in their home.
More water vapor in the air means a high indoor relative
humidity. Relative humidity is the amount of water vapor in
the air stated as a percentage of the maximum amount of
water vapor that could be held in the same air at the same
temperature (saturated air has a relative humidity of 100%,
while air containing half of the water vapor it is capable
of holding at the same temperature has a relative humidity
of 50%). The ability of air to hold water vapor decreases as
the temperature of the air decreases. Damp spots on ceilings
and room side surfaces of exterior walls may result from
excessive indoor humidity. This humidity can pass through
walls and freeze in the insulation. Moisture is able to pass
through walls because of vapor pressure…a flow independent
of air currents. In spring, the frozen material returns to
the liquid state and sufficient moisture may be present to
support mold growth. In winter, inside air may be much more
humid than colder outside air so the vapor pressure actually
forces the inside moisture through cement, wood, and brick
toward the outside. Further, certain varnishes and paints
block the flow of moisture and condensation can occur
between the inside and outside walls, or under exterior
paint surfaces. Condensation is more apt to occur in
climates where the average January temperature is 35 degrees
F or colder.
Many homes with forced air central heating system are
equipped with drum humidifiers (which look like foam-covered
paddle wheels rotating through a tray of water). Unless
frequently cleaned, these devices often become encrusted
with debris and conditions develop favorable for the growth
of fungi (and bacteria).
Dirty drip pans, unvented or poorly vented
bathrooms-laundry rooms-kitchens-attics-closets and
basements may harbor molds.
In a 1997, study performed on a building occupied by
federal offices, it was determined that some microbial
growth was caused by a water leak. However, mold was found
to have grown in other parts of the building as a result of
water and moisture migration into the building through
pre-cast concrete panels as well as interactions between
airflow and imbalances in the building ventilation system.
- A study performed in Kansas City, Missouri included the
testing of 45 homes from all parts of the metropolitan area.
These homes represented a wide range of socioeconomic
backgrounds. More than 50% of the homes tested yielded at
least one air sample with a significant mold count (over
10,000 spores/cubic meter). The fungi Aspergillus and/ or
Penicillium were predominant in many samples, while the
Stachybotrys (from both air and bulk samples) was discovered
in 11 (24%) of the homes. Relative humidity readings were
elevated (>50%) 40% of the time, and approximately 20% of
homes exhibited carbon dioxide levels over 1000 ppm (parts
per million)…apparently indicating a lack of quality air
exchange (it is generally accepted that afternoon carbon
dioxide concentrations >1,000 ppm indicate an unacceptable
supply of outside air).
Fungi may impact human health in a number of
ways:
Allergy (likely the most common). Most fungi produce
antigenic proteins that can trigger allergic reactions.
Fungi growth on/in the body. Fungi may infect man (as
well as plants and other animals) causing a host of
diseases, some of which are seriously debilitating or fatal.
Microbial volatile organic compounds (MVOCs) produced by
some fungi during the degradation of substrates can be
irritating to mucous membranes, cause headaches, and other
symptoms. For individuals with chemical sensitivity, MVOCs
can trigger a reaction as strong as exposure to "chemical"
VOCs.
Reaction to the presence of mycotoxins (i.e. toxic
substances produced by fungi, particularly mold).
It appears that mycotoxins, particularly
those associated with Stachybotrys, have been identified as the
agents of harm in many "toxic mold" cases.
Mycotoxins are metabolites (chemicals that are formed by fungi
either when breaking down complex materials into simpler ones,
or building new, more complex molecules). This later process,
called biosyntheses, is a sequence of enzyme-catalyzed reactions
by which relatively complex molecules are formed in living cells
from nutrients with relatively simple structures.
Trichothecenes, mycotoxins that may be
produced by Stachybotrys, are frequently identified in "toxic
mold" cases. Trichothecenes are also produced by fungi that grow
on food crops as well as with those that colonize moisture
compromised building materials such as wallboard.
Trichothecenes (tetracyclic sesquiterpenes)
are so good at destroying cellular material that they are used
as chemical warfare agents. Mild exposure to the concentrated
forms used in warfare produce vomiting and bleeding while
exposure to high concentrations may result in death as there are
no antidotes to these heat and ultraviolet light stable
compounds. Trichothecenes may enter the body by way of the skin,
inhalation, or ingestion.
Despite the virulence of mycotoxins, their
identification as the sole or even primary causative agent of
illness in "toxic mold" cases may often be incorrect, or at
least premature for a number of reasons.
Mold may grow well under a given set of conditions, but
not necessarily produce mycotoxin(s).
As of late 2000, the California Department of Health
Services reported that "there are no commercial laboratory
tests currently available that can detect mycotoxins in a
building where molds are present."
Mycotoxins are common in soil and dust, including that
found throughout urban areas…both indoors and out. At least
one USEPA-funded study identified house dust as a repository
for environmental pollutants that may accumulate indoors
from both internal and external sources. Dust and tracked-in
soil accumulate readily in carpets, and the pollutants
associated with dust and soil may present an exposure risk
to infants and toddlers, who spend significant portions of
their time in contact with or in close proximity to the
floor and who engage in frequent mouthing activities.
Many of the symptoms identified in "toxic mold" cases
are nonspecific and could be related to exposure to other
sources or infectious agents.
Simple moisture and dust mite feces are linked to the
same indoor air quality problems associated with molds. Dust
mites are prolific in areas of high humidity.
Increase in childhood lung diseases and diseases of
adults with compromised immune systems are increasing. This
increase has been attributed by reputable investigators to a
combination of biological and environmental factors
identified as co-exposure to a complex of environmental
contaminants including tobacco smoke, automobile exhaust,
respirable particulate matter, irritant gases, etc. With
regard to asthma alone, the number of American children
under 15 years of age suffering from this condition
reportedly increased 41% between 1970 and circa 1976.
In summary, it can be said that historical
experience and contemporary data support the position that a
number of interrelated factors may contribute to "toxic mold"
events even when visible mold growth and/or mycotoxins have been
identified in a structure. Therefore, premature identification
of mold as the causative agent of illness with resultant
attention to visible mold removal at the expense of further
investigation may prove to be a significant and costly
disservice to all parties concerned.
Is The Threat Real?
There are a rapidly growing number of mold
related claims that have been filed across the nation.
Plaintiffs are seeking recovery from building owners,
architects, property managers, general contractors and
subcontractors, suppliers of construction components, condo
owners associations, plumbers, and heating ventilation and air
conditioning (HVAC) contractors.
There is ongoing litigation involving allegations of damage
caused by mold. Claims have been or are being litigated in
several states including California, Delaware, Florida, New
York, and Ohio.
According to information published by
GeneralCologne Re, several toxic mold awards and/or settlements
have exceeded $500,000 in damages.
Insurance Issues
Toxic mold claims may affect insurance
carriers that provide Homeowners’, Umbrella, General Liability,
Workers’ Compensation, Employers’ Liability, Commercial Package,
and Difference in Conditions policies.
Many of the claims that insurers are seeing
or will see are complex involving multiple claimants, class
action lawsuits, and multiple defendants. There are first and
third party components to many of these actions. Property damage
claims may include:
Exterior Building Damage
Bodily Injury claims may allege:
Respiratory Problems
The coverage and allocation issues have yet
to be conclusively decided by the courts but the similarities to
environmental and asbestos cases are apparent.
Coverage issues to be considered when
evaluating the merits of a mold claim are:
- Number of Occurrences
- Trigger of Coverage
- Injury in Fact
- Manifestation
- Date of Exposure
- Continuous
- Bodily Injury
- Limited to Physical Injury – No Emotional Injuries
- Property Damage
- Physical Injury to Tangible Property
- Pollution Exclusion
- Indoor Pollutants
- Naturally Occurring
- Personal Injury – Eviction
- Pollution Exclusion May Not Apply
Investigation and Valuation of Mold Claims
CARCO has developed a multi-disciplined staff
including environmental scientists, forensic accountants and
insurance professionals. We utilize a three-step approach to
evaluating the merits of a claim.
- Historical Investigation
- Develop factual information related to the building
site history
- Design, construction, alteration, maintenance
- Analysis of the medical history of the claimant(s)
Technical Investigation
- Investigation to identify mold receptors and
carriers
- Analysis of technical reports provided by claimant’s
experts
Financial Investigation
- Analysis of remediation methods
- Analysis of medical expenses
- Analysis of cost estimates
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