U.S. Dist. Court Rules Mold Not Ensuing Loss; Grants Summary Judgment in Favor of Insurer

HOUSTON - On June 4, a U.S. District Court granted an insurer's motion for summary judgment in a mold-related bad faith/coverage dispute, finding that the mold damage in question could not be considered an "ensuing loss" under the terms of the policy. Richard and Stephanie Fiess v. State Farm Lloyds, No. H-02-1912 (D. Texas, S. Dist.).

In its Memorandum and Order, the U.S. District Court for the Southern District of Texas ruled that the policy's mold exclusion applies to the mold damage in this case, with the cause of the mold being immaterial to whether it is covered by the …