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The Global
Hospitality Advisor
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March 2003
Mold contamination has been discovered in water-damaged hotels, resorts, and other structures across the nation and has raised the specter of health hazards and financial ruin. While some say toxic mold is the �next asbestos� in terms of mass litigation and insurance risk, in most cases, a few common sense steps should keep everything manageable and enable property owners and managers to avoid major problems. How to avoid problems Property owners and managers can control most mold problems with a few
simple measures:
Indoor air quality concerns have become, and will continue to be, environmental issues that materially affect the hotel and resort industry. With few notable exceptions, most mold issues can be handled on a reasonable basis with good detection, prompt handling of insurance and remediation claims, appropriate disclosures and sound legal advice guiding the process. One State�s Odyssey In January 2002, a new California law, The Toxic Mold Protection Act (SB 732) (California Health & Safety Code § 26100 et seq.), became effective and provides guidelines for mold remediation, public education materials, and disclosure requirements. Potentially, this law could lead to the creation of a thorough regulatory structure for mold and other indoor air problems. However, in the short term, the regulatory scheme cannot be developed because it is contingent on state funding�impossible this year in light of California�s $35 billion budget shortfall. Ken Ehrlich is a partner in Jeffer, Mangels, Butler & Marmaro�s Land Use, Environmental, and Energy Department. In addition to indoor air issues, he has extensive experience advising both private and public sector clients regarding their rights, obligations, liabilities and opportunities relating to environmental and project development matters. His practice includes real estate and environmental litigation, environmental site assessment and remediation, administrative proceedings and regulatory compliance matters, as well as disclosure and reporting of environmental problems or liabilities. Mr. Ehrlich also has substantial experience in environmental aspects of real estate transactions. Contact Ken Ehrlich at [email protected] or 310.785.5395. The Global Hospitality Group® is a registered trademark of Jeffer, Mangels, Butler & Marmaro LLP ©2003 Jeffer, Mangels, Butler & Marmaro LLP |
Jeffer, Mangels, Butler & Marmaro LLP web site: http://www.jmbm.com Email Jim Butler at [email protected] Or contact Jim Butler at the Firm Jeffer, Mangels, Butler & Marmaro LLP 1900 Avenue of the Stars Los Angeles, CA 90067 Phone: 310-201-3526 The premier hospitality practice in a full-service law firm |