Mold verdict reduced on appeal

A Texas appeals court threw out most of a $32-million jury verdict against Farmers Insurance Group on Dec. 19, cutting the award to the $4-million range for a family’s toxic-mold claims.

The Austin court said it could not support the jury’s findings that a Farmers’ subsidiary had “knowingly” breached its duty of good faith and fair dealing toward Melinda Ballard, who had sued over water and mold damage in her 22-room mansion.

The 2001 verdict stunned insurers, who blamed rising claims for mold and water damage for higher homeowners’ premiums.