5th Circuit Sends Ensuing Loss Mold Question to Texas Supreme Court

NEW ORLEANS - The Fifth Circuit U.S. Court of Appeals has asked the Texas Supreme Court to decide whether coverage for mold contamination is expressly excluded under the ensuing loss provision of an insured's homeowners' policy. Fiess v. State Farm Lloyds, No. 03-20778 (5th Cir.).

In an opinion issued Dec. 7, the federal appeals court stated that because relevant state authorities conflict regarding the application of the ensuing loss provision to the mold exclusion of Texas homeowner's insurance policies, it would certify the question to that state's highest court.

'This claim implicates a question of state law important to both …