St. Paul Asks Federal Court to Set Aside $2.55 Million Insurance Appraisal

AMARILLO, Texas - St. Paul Mercury Insurance Co. has asked a federal court to set aside a multi-million-dollar appraisal it says includes repairs not covered by the policy and a $250,000 error in the cost of mold remediation. St. Paul Mercury Insurance Co. v. Fausset Neely, No. 2-05CV-198-J (N.D. Texas).

St. Paul filed the declaratory judgment action against its insured, Fausset Neely Inc., on July 1 in the U.S. District Court for the Northern District of Texas.

At issue is coverage for property damage resulting from a ruptured water heater on April 13, 2003 on the 10th floor of the …