8th Circuit Affirms Ruling on Negligence for American Family Mutual

CINCINNATI - A real estate firm that failed to make timely repairs or respond to its tenant's complaints of mold contamination is not entitled to a defense or indemnification from its insurer, the 8th Circuit Court of Appeals affirmed on March 16. Walnut Grove Partners, et al. v. American Family Mutual Insurance Co., No. 06-2202 (8th Cir.).

The Circuit Court panel ruled that Walnut Grove Partners' negligence, rather than a covered 'accident' or 'unintended event' caused the alleged damage, and the decision by the U.S. District Court for the Southern District of Iowa comports with Iowa case law.

Walnut Grove …