Mold: The Hysteria Among Us (Continued)

Mondaq Business Briefing, October, 2002

EXPOSURE TO MOLD CAUSES BAD FAITH CLAIMS

If the average mold claim in Texas for the 2-year period from January 1, 2000 to December 31, 2001 was $22,740, inclusive of allocated loss adjustment expenses (but could be more or less, on account of shortcomings in the data collection techniques), then why are some lawyers so anxious to get their hands on mold insurance claims? Easy - because mold insurance claims make ideal bad faith cases.

As discussed above, the Ballard case, despite its status as the Marbury v. Madison of mold litigation, was really a bad faith insurance claim. Even Melinda Ballard would likely say so. Testifying on July 18, 2002 before the Congressional Subcommittees on Housing and Community Opportunity and Oversight and Investigations, she...