Negligence and Design Error Leads to Costly Settlement

A claim alleging negligence and design error was issued against a design/build contractor, resulting in a $4.5 million settlement not including high defense costs.  Elevated levels of mold were discovered in the HVAC system at a convention center and hotel.  The owner demanded remediation and repair to all the HVAC units throughout the hotel to prevent any further mold growth.  At the same hotel/convention center, the architect was sued for various construction and design defects on structural beams, exterior waterproofing, capacity deficiency, and the plumbing system.  There are reported damages of over $30 million including delays.

This is a claim scenario developed from a single claim or several claims and has been developed for illustrative purposes only.

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