CGL Insurer Has No Duty to Defend Pa. Landlord Against Tenant Claims

PHILADELPHIA - A federal judge ruled July 13 that a mold exclusion in a commercial general liability policy clearly precludes coverage for tenants' mold claims against the landlord policyholder. Alea London Ltd. v. Rudley, et al., No. 03-CV-1575 (E.D. Pa.).

Howard and Edith Rudley sued landlord Albert Davis in 2002, complaining that a neighbor's leaking washing machine caused a ceiling to collapse and pipes to break in their apartment, which led to mold contamination (No. 020604002, Pa. Comm. Pls., Phila. Cty.). The Rudleys say they moved their belongings to the home of co-plaintiff Robert Handfinger, contaminating his possessions as well. …