5th Circuit Follows Texas High Court in Ruling for Insurer

NEW ORLEANS - The 5th Circuit Court of Appeals issued its expected ruling on Dec. 12 affirming a lower court order denying mold coverage to Richard and Stephanie Fiess. Fiess v. State Farm Lloyds, No. 03-20778 (5th Cir.).

In a short, two-paragraph opinion, the court noted that its decision follows the Texas Supreme Court's negative response to a certified question on the issue of coverage under an ensuing loss provision in a standard homeowners policy (HO-B) approved in 1992.

The Texas Supreme Court ruled 7-2 on Aug. 31 that the policy's ensuing loss provision in a standard Texas homeowners …