Subrogation and Intervention in Construction Defect Case Involving Water and Mold

by Kent Holland | Jul 18, 2011 | Newsletter Article

February 2006 By paying a portion of its insureds claims for property damage to their house, State Farm Insurance obtained partial subrogation rights under the homeowners policy entitling it to intervene in a construction defect lawsuit that the homeowner brought...

Mold Litigation: Expert Testimony Required to Prove Causation

by Kent Holland | Jul 18, 2011 | Newsletter Article

April 2006 Due to lack of expert testimony concerning causation, a federal district court in Texas dismissed a suit by a homeowner alleging that a leaking sewer pipe in a basement crawl space caused mold to grow throughout the house. No previous Texas cases have dealt...

Premium Instead of Prayer Needed for Mold Coverage

by Kent Holland | Jul 18, 2011 | Newsletter Article

July 2006 In a claim by a church for coverage under its all-risk policy for losses caused by mold, the insurer, Cincinnati Insurance, denied coverage based on a fungus exclusion in the policy and based on an exclusion for “faulty, inadequate, or defective...

Mold Excluded in Homeowner’s Policy Is Not Covered as an Ensuing Loss of Leaking Water

by Kent Holland | Jul 18, 2011 | Newsletter Article

January 2007 Summary judgment was correctly awarded against a homeowner that claimed it was entitled to coverage under its homeowner policy for damages arising out of mold growth that occurred as a result of construction defects that caused serious water leakage...

Pollution Exclusion Bars Coverage for Damage Caused by Dirt and Rocks

by Kent Holland | Jul 18, 2011 | Newsletter Article

March 2007 The case of Ortega Rock Quarry v. Golden Eagle Insurance Corp., 141 Cal. App. 4th 969, is another example of courts recognizing the plain intent of the pollution exclusion to exclude coverage for situations even when the “pollutant” is naturally...

Epoxy Fumes Are Unambiguously Excluded from Coverage as “Pollutants” under the CGL Total Pollution Exclusion

by Kent Holland | Jul 18, 2011 | Newsletter Article

November 2007 The pollution exclusion in a commercial general liability (CGL) insurance policy issued by Firemen’s Fund Insurance excluded coverage for damages arising out of a claim asserted by a warehouse employee alleging she developed respiratory problems as...