North Carolina workers' compensation law bars the claims of former IBM Corp. employees who allegedly suffered health problems as a result of their exposure to toxic mold in the workplace, according to a ruling by a federal appeals court.
 
Ex-employees Linda Allen and Julie Ord brought claims for mold-related health problems they allegedly suffered due to IBM's misconduct. They argued they can pursue a civil claim against IBM based on an intentional-tort exception to the exclusivity provision of the North Carolina Workers' Compensation Act, because IBM engaged in activities it knew would cause serious injury or death.
 
Allen and Ord were senior financial analysts who worked for IBM in Building 061 in Research Triangle Park, N.C. Due to problems with the plumbing system, Building 061 had experienced numerous roof leaks and floods, court filings said.
 
During the weekend of April 29-30, 2000, a pipe burst and flooded Building 061 with 30,000 gallons of water. Allen and Ord say IBM did not remove the water-damaged materials until May 5, exposing employees to wet carpeting and other water-soaked materials for an entire workweek.
 
Tests of building materials and air samples from Building 061 performed a few weeks later indicated the presence of toxic mold, according to court records.
 
During the seven-month period in which IBM renovated Building 061, Allen and Ord continued to work in the building. They allege that after the flooding they began experiencing vertigo, chronic fatigue, muscle spasms, suppressed immune systems and cognitive disorders.
 
In November 2000, after learning that other employees were experiencing similar symptoms, Allen and Ord requested that IBM conduct an investigation. An IBM inspection team performed a walkthrough inspection, which did not reveal any mold problems.
 
In March 2002 a physician determined that Allen's and Ord's health problems were caused by exposure to indoor toxic mold in Building 061, according to court filings.
 
Allen and Ord filed suit in December of that year against IBM in Durham County Superior Court. IBM removed the action to the U.S. District Court for the Middle District of North Carolina on the basis of diversity of citizenship. The company later filed a motion to dismiss.
 
The District Court granted the motion, finding the intentional-tort exception to the North Carolina Workers' Compensation Act did not apply.
 
The court said Allen and Ord failed to state claims that IBM intentionally engaged in misconduct that it knew was likely to cause them serious injury or death.
 
Further, the court noted that IBM started removing the moldy materials five days after the pipe burst and renovated the building during the next seven months.
 
"Even accepting plaintiffs' views that IBM was aware of the presence of toxic mold in Building 061, the court nevertheless finds that plaintiffs' allegations fail to show that the dangers of severe injury or death due to toxic mold were obvious to IBM," the court said.
 
The plaintiffs appealed, and the U.S. Court of Appeals for the 4th Circuit affirmed the judgment of the District Court. The appeals court said the lower court correctly decided the issues before it.
 

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