La. High Court Denies Appeal of Ruling Favoring Policyholders

BATON ROUGE, La. - In an order that one attorney said could affect thousands of policyholders, the Louisiana Supreme Court on June 14 denied review of a trial court ruling that a standard mold endorsement purporting to limit coverage is ambiguous and unenforceable. Panus v. Lexington Insurance Co., et al., No. 2003-18007 (La. Sup. Ct.).

On March 24, Louisiana's 4th Circuit Court of Appeals also declined to review the Jan. 24 order by Judge Carolyn W. Gill-Jefferson awarding partial summary judgment to homeowners who challenged Lexington Insurance Co.'s 'Limited Mold Related Coverage Endorsement' (See HarrisMartin's Columns: Mold, April 2006).

Lexington …