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.