5th Circuit Finds Coverage Case Moot After Settlement

NEW ORLEANS - The 5th Circuit Court of Appeals on Oct. 11 vacated a lower court order that Nautilus Insurance Co. defend a subcontractor defendant in a mold case, saying the coverage case became moot when the underlying case was settled. Nautilus Insurance Co. v. Nevco Waterproofing, No. 05-20700 (5th Cir.).

The three-judge panel rejected Nautilus' argument that the case fell within an exception to the mootness doctrine for issues that are 'capable of repetition,' saying it is unlikely the insured subcontractor will be sued and, in any event, it need not rule on a hypothetical future lawsuit.

Nautilus filed …