Ky. Court Declines to Follow Fiess on Ensuing Loss

PADUCAH, Ky. - A federal judge in Kentucky has restated his holding that an ensuing loss exception to a mold exclusion is, at best, ambiguous and should be interpreted in favor of the insureds. Eckstein v. Cincinnati Insurance Co., et al., No. 5:05CV-043-M (W.D. Ky.).

Judge Joseph H. McKinley Jr. of the U.S. District Court for the Western District of Kentucky acknowledged in his Sept. 27 opinion that his findings run counter to recent decisions in Texas and the U.S. District Court for the Eastern District of Kentucky, but said his decision follows 6th Circuit case law.

Judge McKinley …