Court Reduces Homeowner's $5,000 Recovery to $0 on Appeal

SALEM, Ore. - The Oregon Court of Appeals has reversed a trial court finding that a $5,000 mold policy limit applied to homeowners' claim for repairs to damage from a leaky shower, ruling instead that coverage was barred entirely by a "continuous seepage" exclusion. Marsh, et al. v. American Family Mutual Insurance Co., No. A136067 (Ore. Ct. App.).

The court's Oct. 14 opinion also vacated the trial court's award of attorney fees for the homeowner plaintiffs.

Kathleen Marsh and Fariborz Habibi filed a claim with American Family Mutual Insurance Co. to recover $23,737.28 they spent repairing rot under their bathroom …