Restaurants create mold contamination risk in commercial and residential buildings.

The recent dialogue over the 'toxic mold' epidemic has focused largely on the residential real estate market. However, mold does not discriminate, and certain commercial and retail properties have recently been beset by costly mold conditions. Not surprisingly, many commercial property owners, especially those with retail space accommodating foodservice and other "wet" uses, have begun to address the insidious problem of mold and the associated legal and financial liabilities.

While scientific evidence connecting mold to health problems remains inconclusive, many believe mold may cause certain adverse health effects ranging from minor symptoms such as eye irritation, cough, runny nose, allergy and asthma to more severe health ailments such as Organic Dust Toxic Syndrome and pulmonary hemosiderosis.

In December, a large jury verdict in Boston further raised the stakes for the nation's real estate community. The message of the judgment was clear: Juries are becoming less patient with the medical community's failure to connect toxic mold exposure to health problems/personal injury--the juries are prepared to make that connection themselves.

With ever-increasing legal and financial risks, and the absence of effective mold insurance, owners must create stringent rules for tenant businesses that use water in their operations. Clearly, restaurant tenants represent the most significant risk as their use of water creates the greatest potential for mold infestation. Building owners with restaurant tenants must consider this, implementing comprehensive mold prevention programs with guidelines specifically addressing water usage in retail units.

Effective mold management requires the cooperation of building management and all retail personnel--it is a team effort. Property owners should mandate worker and management training programs for restaurant personnel, and they must inspect restaurant operations on a regular basis, keeping an eye on possible water damage and mold growth.

Small levels of contamination can be cleaned relatively simply, while larger areas may require a more complicated process.

Throughout the remediation process, mold remediation professionals must observe city of New York Department of Health guidelines with sensitivity toward U.S. Occupational Safety and Health Administration standards. Today, very few contractors or consultants are capable of performing mold-related work, and build owners and managers must not simply select an environmental consult without a highly detailed mold pre-qualification program.

To address legal and financial liability, insurance policies must be read, along with lease- and building-related documents. In many cases, insurance certificates will not suffice since mold coverage can be eliminated by endorsement or exclusion within the body of the policy. If a policy does not specifically state that mold is covered, it is important to carefully review the working to assure coverage.

Mold remediation standards currently are not as advanced as those that exist for asbestos and other environmental hazards. As a result, retailers and retail real estate owners and managers need professionals to carefully pre-qualify mold management experts.

Daniel Sitomer, senior partner of Sitomer & Hogan, LLP, is the leading mold law expert in the United States. He has assembled a team of scientists and doctors to establish the most successful defense strategies in mold litigation and the most effective mold management programs.