Federal Judge Adopts Magistrate's Recommendation, Denies Judgment To Allstate

Another federal judge in Texas has interpreted a standard 'ensuing loss' clause as allowing coverage for mold despite a specific mold exclusion. Coury v. Allstate Texas Lloyd's, No. H-02-2238 (S.D. Texas).

Judge John D. Rainey of the U.S. District Court for the Southern District of Texas on March 31 adopted Magistrate Judge Nancy K. Johnson's Jan. 6 recommendation that Allstate's motion for summary judgment be denied.

Her one-page order did not elaborate on the magistrate judge's reasoning. In adopting the report and recommendation, Judge Rainey sided with a recent line of cases whose interpretation of the ensuing loss clause …