Insurer Need Not Contribute to Settlement of Mold-Related Claims Against Contractor

SAN DIEGO - A California Appeals Court has reversed an order that forced an insurer of a faulty new construction project to reimburse another insurer nearly $150,000 following settlement of claims that defects in the building caused mold to build up and ultimately forced the buyers from their home. Scottsdale Insurance Co. v. Essex Insurance Co., No. D038635 (Calif. Ct. App., 4th Dist.)

In a decision April 8, the Fourth District California Court of Appeal ruled that under the laws of equitable contribution, the trial court that ordered the reimbursement erred when it failed to consider that the liable insurer …