March 19, 2008, Rocky Mountains - Denver-based law firm Brownstein Hyatt Farber Shreck has won a $6.4 million verdict for its clients, in what is apparently the first case of its kind, where indirect damages called “unabsorbed overhead” have been awarded to home builders to compensate for scheduling delays.

Most of the time, asbestos claims are laid by employees of companies that once manufactured asbestos-containing products, or worked with asbestos in industrial processes.

A smaller number of cases involved people who are affected by secondary exposure that occurs because a family member works in an asbestos-related occupation. Still other cases, such as those in Libby, Montana, occur in people who live near a site where asbestos, or another substance that is contaminated with asbestos, is mined.

People exposed to asbestos in any of these situations can develop asbestos-related diseases such as a cancer called mesothelioma, and a chronic lung disease called asbestosis. Both are caused only by exposure to asbestos, and both are incurable. Mesothelioma is especially deadly, with an almost 100% mortality rate and a very poor prognosis for most people diagnosed with the cancer.

Other asbestos-related lawsuits generally involve the prosecution of contractors who have handled asbestos illegally by failing to comply with local, state, or federal regulations that govern proper and safe handling of the substance.

This case is somewhat unique, in that it doesn’t involve asbestos exposure, the risk of exposure, or even the improper handling of asbestos-containing materials.

The builders in the case, are Richmond American Homes of Colorado, Metropolitan Development, Metropolitan Builders Inc., Standard Pacific of Colorado Inc. and Touchstone Homes.

The six building companies made asbestos-related claims following an asbestos clean-up project at former Lowry Air Force Base. According to the builders, cleaning up the asbestos contaminated site at Lowry Air Force Base caused a considerable delay in their construction schedule.

Construction delays can cost builders potentially large sums of money, and it’s on this basis that the building companies claimed damages from the US Air Force.

The case was heard by the US Court of Federal Claims. After hearing testimony from both sides, the court awarded the builders indirect damages known as “unabsorbed overhead.” These are losses incurred by home builders as a result of construction schedule delays.

In this case, the US Air Force has been instructed to pay out because the builders incurred heavy losses due to the extent of the asbestos contamination at the former Lowry Air Force Base.

This entry was posted on Thursday, March 20th, 2008 at 4:32 pm and is filed under Asbestos Exposure, Asbestos Litigation, Colorado, Jobsite Exposure. You can follow any responses to this entry through the RSS feed. Responses are currently closed, but you trackback from your own site.