Legal Complaint Against a Restorer is Dropped

Tuesday, November 10, 2009 by Patrick-Moffett

Background: 6 months ago we were called in to “independently document and confirm the presence of preexisting water damage and mold growth” on behalf of the restoration contractor. Our total cost to the contractor for travel, a visual assessment, pictures and a rather extensive report was $595.00.

Case: Since then, a lawsuit filed against the water damage restoration contractor. The building owner complained to their insurance company, the contractor caused mold spores to contaminate other parts of the building. The insurance company hired an environmental professional to test and guess what they found? Mold spores including Stachybotrys.

Some of the allegations against the contractor included: poor drying methods that resulted in mold growth to occur; and the release of mold spores into tenant areas because of inadequate containment. Damages against the contractor is $1.2 million because the building owner has to move out tenants and relocate them, take apart bathrooms and kitchens and put in all new materials.  

Defense: Once the restoration contractor’s attorney heard we had done a report and my deposition testimony confirmed: there were preexisting water and mold growth conditions; the contractor’s containment met the standards of care for our industry, the case against the contractor has been dropped! Yea…

On a side note: Initially, the insurance adjuster did not reimburse the contractor for our inspection and report, because she said: Hiring our company to independently document the claim and provide direction to the contractor was not necessary. The contractor’s attorney disagreed, because the insurance company owes the insured a duty to investigate the claim and complete an independent, fair, thorough and objective evaluation of the damaged property. Our billing will be paid by the adjuster since we are qualified to provide independent expert services.

The conclusion is: Hire a construction qualified environmental professional to look out for your best interests and protect your company (a qualified environmental professional who is also a licensed general contractor and has errors and omissions insurance coverage). At the time of loss they are expected to document: (1) preexisting and (2) current water damage (water, mold, sewage and hazardous conditions). They will (3) provide you with a photo-documented report and (4) a written scope of work for you to follow. (5) They will address in their report occupant exposures and worker health and safety issues including PPE. (6) On completion of work they will provide you with a follow up inspection to confirm all work has been completed as agreed and confirm the affected areas are clean and dry.