Texas Judge Differs With Fiess, Finds for Homeowner on 'Ensuing Loss'

HOUSTON - A Texas federal judge has rejected a colleague's interpretation of 'ensuing loss' in a homeowner's policy and held that a family can use the provision to pursue coverage for mold damage despite an explicit mold exclusion. Mark Villarreal, et ux. v. State Farm Lloyds, No. CA-C-079-H (S.D. Texas).

Senior U.S. District Judge Harry Lee Hudspeth of the Southern District of Texas said coverage was available only if the mold arises from an otherwise covered event, such as water damage.

In denying summary judgment sought by State Farm Lloyds, Judge Hudspeth said he disagreed with a colleague's interpretation of …