Court Finds Insurer Prejudiced by Defendants' Agreement to Settle

MEDINA, Ohio - An Ohio appellate court has affirmed that the insurer for a condominium association was prejudiced by individual condominium owners' decision to settle a mold case and need not indemnify the owners. Novak v. State Farm Insurance Cos., No. 09CA0029-M (Ohio Ct. App., 9th Dist.).

Ohio's Ninth District Court of Appeals held 2-1 on Dec. 31 - without reaching the issue of whether the defendant owner was covered by the policy - that State Farm Insurance Cos. does not have to provide coverage for the $100,000 settlement.

Martha Novak was the defendant in a lawsuit filed by …