Judge Denies Remand in Mold Case, Says Diversity Exists Among Plaintiff, Insurer

NEW ORLEANS - A federal judge has refused to remand an action filed against an insurer for costs related to mold clean up that the plaintiffs' alleged were grossly underestimated by the insurer's adjusters. Medical Research Centers, Inc. v. St. Paul Property and Liability Insurance Co., et al., No. 03-2794 (E.D. La.).

In a Jan. 16 decision, Judge Eldon Fallon of the U.S. District Court for the Eastern District of Louisiana ruled that the federal court has jurisdiction over the matter because the defendant insurer's potential liability arises from a contractual obligation to the plaintiffs and not from an indemnification …