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.
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