As litigation rises, homebuilders working to stamp out spore of the moment

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Sunday, September 29, 2002

Copyright © Las Vegas Review-Journal

HOME CONSTRUCTION: Breaking the mold

As litigation rises, homebuilders working to stamp out spore of the moment

By HUBBLE SMITH

REVIEW-JOURNAL

McCrossan was closely examining the framing of his first new home in

Las Vegas Valley when he noticed what appeared to be mold on several of the

wooden studs.

It was black and it flaked off at the touch, only to reveal more layers

underneath the affected area.

McCrossan was deeply concerned. His wife had suffered a severe reaction to

mold at a previous rental home in the valley.

He called the County Building Department and was told that building

codes have no mold regulations to enforce. A building official recommended

that he hire a private company to treat the mold before the contractors put

up the Sheetrock.

" There is a very strong possibility that I will never have any problems

stemming from the current conditions, " McCrossan said.

Still, after contacting the county building department, he said he was

surprised to learn that the codes don't even address the issue.

" With more reported links to health afflictions associated with mold spores

of unsuspecting homeowners, this seems irresponsible, " he said.

Steve Hill, president of Silver State Materials and chairman of the

Coalition for Fairness in Construction, said mold may occasionally be found

on lumber shipped into Las Vegas, but it's nothing to worry about.

There are several thousand types of mold, he said, most of which pose no

health risks.

" Only one or two types are actually harmful to people, and quite often it's

not the kind that's found here, " Hill said.

Despite working in one of the nation's driest climates, Nevada's

home-building industry in recent years has become the target of an

increasing number of lawsuits filed over moldy wood.

" Yeah, it is becoming more of a problem, " said , a California

attorney regarded as an authority in construction defect litigation. " Las

Vegas is a high-growth area with mass construction going on and low quality

of construction. We've seen significant evidence of construction defects. "

said the public has become better informed about health problems

caused by mold, which has led to more reporting of respiratory illnesses,

dizziness and nausea.

" If you move the homeowners away from their environment, these problems tend

to go away and diminish with time. Now you've added the injury component to

the property damage claim, " said.

Hill said: " It's something that the industry is going to have to address

because it is a serious problem for some people and I don't know who should

be responsible for that, "

Homeowners' insurance policies are excluding mold coverage, as are

contractors' insurance companies, he said.

Although trial lawyers are adding moldy wood to their list of construction

lawsuit targets, the construction industry believes educating the public

about the true nature of mold and what to do to prevent it will help offset

the rising tide of litigation.

The Nevada home-building industry is taking aggressive measures aimed at

restricting mold growth, while encouraging homeowners to do their share to

retard the growth and spread of mold.

Home-building representatives adamantly contend that moldy wood does not

constitute a construction defect, despite arguments raised by trial

attorneys.

" There is no mold crisis in Las Vegas, " said Caruso, spokeswoman for

the Southern Nevada Home Builders Association. " This is the attorneys trying

to generate a new revenue stream for themselves, a way to get more lawsuits.

Attorneys are running out of construction defect issues. Now they're trying

to push these mold cases. "

She said the presence of dust mites is much more likely to cause allergy

symptoms in the home.

" It's important to understand that mold is not a construction issue. It's a

moisture issue, " Hill said. " Mold needs moisture to grow, sure, but not

necessarily a lot, just some. In any house there's a certain amount of

moisture. If there's a plumbing leak or a drip, that can facilitate growth. "

Much of the moisture comes from landscaping, Hill said. A sprinkler can get

turned and throw water back at the house, on the wall and window frames,

which allows mildew to begin to grow.

said only about 5 percent of mold lawsuits list sprinklers as the

cause, while 90 percent of the cases are from leaking roofs and windows and

second-story decks that are nowhere near a sprinkler.

Ron Lynn, building inspector for County, said he's seen some mold on

construction sites in the valley, but not much.

" Everyone in construction sees mold on wood occasionally, sometimes when a

bathroom is being renovated or some leaky pipes are being fixed, " he said.

" Mold is certainly not something you want in the home. It's strange because

we have a heightened sensitivity to it here. You go back East where they

have a lot of basements, it's there. It's been around a long time. "

Lynn said he's unaware of any building codes nationally that deal with mold,

though he believes there will be discussions in the coming year about it.

The building department looks at fire and life-safety issues in

construction, and the problem with adopting mold regulations is experts have

different views on how harmful it is, Lynn said.

" It's very fertile ground for construction defect (lawsuits) because it

looks very bad, but I don't think the impact has truly been quantified, " he

said.

The construction coalition recognizes that mold can be a problem in

residential and commercial construction, and is trying to educate the public

about the different kinds of molds found on wood. It also notes that

Nevada's dry climate will probably kill most molds before they can grow and

spread.

" Every house is susceptible to mold growth in one way or another, " said

of G. Day Construction in Las Vegas and past president

of the Nevada Framers Association. " At one point in time, almost everybody

involved in the home building industry has run into a problem from potential

homeowners over mold. "

said the two prevalent forms of mold here are aspergillus and

penicillium, neither of which is conducive to growth in the valley's dry

climate.

Black mold, which feeds off the organic compounds in building materials, is

the result of a water intrusion of some sort such as a leaking pipe or other

source, including lack of homeowner maintenance

Black mold has garnered national media attention for allegedly causing

illnesses among homeowners across the country. Hill said there were 1,300

lawsuits filed in Texas in 2001 related to mold.

acknowledged that black mold may lead to illness if undetected or if

the source of water intrusion isn't fixed.

In contrast, the aspergillus and penicillium forms of mold are more common

and are far easier to eradicate, he said. Builders can eliminate these molds

simply by cleaning the wood with commercial mildew removers, or a solution

of household bleach and water.

" With all the research information available, we were unable to find one

recorded case of adverse health effects resulting from these two molds on

lumber, " said.

Builders must also work with homeowners to ensure there are no sources of

moisture in the home, said.

Some builders are including provisions in their sales contracts requiring

homeowners to keep landscaping and water sources away from foundations to

prevent water intrusion and, possibly, a mold problem, he said.

" You don't see trapped moisture until you see the mold, " said Ian Simon,

owner of Odor Masters, a Las Vegas company that detects and removes mold

contamination. " It's very prevalent. You've got a lot of new homes, new

construction. "

Homeowners need to be wary of companies that treat mold, Simon said, as some

are charging $20,000 and more for a job that should only cost $1,000 to

$3,000.

" A lot of companies out there are preying on fears of homeowners and people

are getting ripped off, " he said. " These guys are just running amok. Mold

companies right now are like auto mechanics of yesteryear. "

Spearheading the home building industry's efforts to reduce construction

litigation and rein in liability insurance costs, the construction coalition

is seeking legislation providing builders and contractors with the " right to

repair " deficiencies in housing construction, before lawsuits prevent

contact with homeowners and access to homes to make needed repairs.

The coalition also is asking legislators to develop a " fair definition of

construction defect " to help curtail unwarranted lawsuits.

Defining defects and granting the right to repair will let homeowners

receive prompt home repairs while avoiding lengthy lawsuits, the coalition

contends.

Caruso noted that Nevada's construction litigation epidemic and its

resulting insurance crisis flies in the face of a recent independent study

by J.D. Power and Associates that ranked metropolitan Las Vegas third in

overall new-home buyer satisfaction among 16 U.S. cities.