Insurer delays mold claim coverage determination: Breach of contract, good faith: Fraud: Economic losses: Verdict

Law Reporter, Nov 2004

Oak Ridge Baptist Church v. Utica Lloyds of Tex., Tex., Montgomery County 221st Jud. Dist. Ct., No. 02-01-00167-CV, Mar. 5, 2004.

Oak Ridge Baptist Church discovered mold damage in its buildings and filed a claim with its insurer. The insurer delayed determination of coverage for years, resulting in increased costs for remediation and rebuilding. The original damage was about $5.4 million, but the delay caused the damages to rise another $2.25 million. Due to the buildings' age and high repair costs, repair was not feasible.

Oak Ridge sued the insurer, alleging breach of contract, breach of good faith and fair dealing, fraud, and violations of the insurance code.

Defendant contended the claim was not covered by the policy and that the mold caused no damage.

A jury determined defendant's policy covered mold damage and awarded plaintiff about $5.14 million.

Plaintiff's Counsel

* Fred Hagans,

* Kendall C. Montgomery,

* Jennifer B. Rustay, and

Paula Janecek, all of Houston, Tex.

* Vincent L. Marable III, Wharton, Tex.

Paula Crow, Conroe, Tex.