Causal Nexus Between Mold Damage & Misrepresentations Shown, Claims Not Precluded, Appeals Court Rules

MADISON, Wisc. - An appeals court recently remanded a case concerning alleged mold and defects misrepresentations by home sellers and their real estate broker, finding that because some of the claims are not precluded by insurance exclusions, as asserted by the errors and omissions (E&O) insurer, that insurer has a duty to defend. John and Lynn Droegkamp, Plaintiffs, American Southern Insurance Co., Intervening Plaintiff-Respondent, v. James and Susan Langdon, Defendants, Realty Executives and Timothy Michelic, Defendants-Appellants, American Family Mutual Insurance Co., Intervenor, Appeal No. 02-3418 (Wisc. App. Ct., Dist. II).

Reversing, in part, the trial court's grant of summary judgment …