Court Agrees with Insurer that 'Fungus' Exclusion Bars Mold Claim

SYRACUSE - A New York trial court ruled Jan. 31 that the plain meaning of 'fungus' in a policy exclusion clearly includes a school district's claim for mold damage in a high school library. The Board of Education of the Liverpool Central School District v. Utica Mutual Insurance Co., No. 2004-4164 (N.Y. Sup., Onondaga Cty.).

Onondaga County Supreme Court Justice Donald A. Greenwoods cited a report from the school district's own expert, as well as various dictionary definitions, in granting summary judgment to Graphic Arts Mutual Insurance Co. on breach-of-contract and bad faith claims brought by The Board of Education …