Texas Judge Sides With Allstate in Dispute Over Ensuing Loss Coverage For Mold

BEAUMONT, Texas - Allowing coverage for mold as an ensuing loss under a homeowner's policy would 'very nearly destroy' the policy's mold exclusion, a federal judge said Dec. 2 in denying coverage. Malley v. Allstate Texas Lloyds, No. 1:03-CV-1408 (E.D. Texas).

Judge Ron Clark of the U.S. District Court for the Eastern District of Texas noted the conflict among judges in the Southern District of Texas on the ensuing loss issue. Judge Clark said that, while neither was binding, the Southern District's ruling in Fiess v. State Farm Lloyds (2003 WL 21659408 [S.D. Tex. June 4, 2003]), which found against …