Belatedly Discovered Mold Damage Is Within the Scope of Signed Settlement Agreement, Rules U.S. District Court

NEW ORLEANS- A U.S. District Court ruled April 7 that mold damage, discovered the day after a settlement agreement was signed between a business owner and its indemnity company, is within the scope of the agreement and, therefore, may not be brought as a supplemental claim. Tulane Property, Limited Partnership d/b/a Economy Motor Lodge, and General Contracting & Consulting Services, L.L.C. d/b/a Orleans Storm Office v. General Star Indemnity Company, No. 02-2020, Section "R" (3) (D. La., E. Dist.).

Even though the mold damage was not discovered until after the settlement agreement was finalized, the court stated that the law …