4th Circ. Nixes Ruling For Ohio Casualty In Mold Suit

Law360, New York (February 13, 2009, 12:00 AM EST) -- Reversing a lower court ruling, a federal appeals court has found Ohio Casualty Co. responsible for indemnifying homebuilder Stanley Martin Cos. Inc. for the cost of repairing mold damage caused by a subcontractor.

The U.S. Court of Appeals for the Fourth Circuit on Thursday reversed a ruling by the U.S. District Court for the Eastern District of Virginia, which had found that mold damage from defective work performed by subcontractor Shoffner Industries did not constitute an “occurrence” under the policy.

Shoffner had supplied wood trusses for...
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