Policy's 'Dampness' Exclusion Applies to Mold Claim, Court Finds

BUFFALO, N.Y. - A federal court held on Feb. 9 that an exclusion for 'corrosion, rust or dampness' unambiguously precludes a commercial building owner's claim for mold contamination. 40 Gardenville LLC v. Travelers Property Casualty of America, No. 02-CV-788S (W.D. N.Y.).

Plaintiff 40 Gardenville LLC purchased an all-risks policy from Travelers Property Casualty of America when it purchased a vacant building in West Seneca, N.Y. Contractors renovating the structure stopped work when they discovered mold contamination, and 40 Gardenville sued Travelers in New York state court after Travelers refused to cover remediation costs.

Travelers removed the lawsuit to the …