Professional Services Exclusion Applied to Nondisclosure Claims

MILWAUKEE, Wis. - Wisconsin's Court of Appeals affirmed March 8 that professional services exclusions in two business liability policies bar coverage for real estate agents accused of failing to disclose mold issues in a home sale. Eddy v. B.S.T.V. Inc. et al., No. 04-1664 (Wis. App.).

Michael and Lisa Eddy sued real estate agent Bruce Kirchoff and his employer, Realty Executives, complaining that a house purchased in July 2001 through Realty Executive's services was later found to be contaminated with mold. The Eddys contend they have suffered serious health effects from exposure to mold, and that Realty was obliged …