Federal Court Absolves 2 Insurers of Liability in Suit Against Plumbing Contractor

SHREVEPORT, La. - A federal judge has ruled that mold and work product exclusions in commercial liability policies issued to a plumbing contractor preclude any defense or indemnity for mold claims brought by homeowners. Clarendon America Insurance Co. v. Southern States Plumbing Inc., No. 09-1974 (W.D. La.).

Judge Tom Stagg of the U.S. District Court for the Western District of Louisiana granted motions for summary judgment by Clarendon America Insurance Co. and American Vehicle Insurance Co. on March 23, finding, too, that the Clarendon policy had expired when the underlying damage occurred.

Toni and Richard Johnson allege in the underlying …