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Texas Supreme Court Sides with Insure on Mold-Related Policy Changes

April 14, 2021

The Texas Supreme Court on April 9 reversed lower court rulings and found that Farmers Insurance was within its rights when it decided 19 years ago not to renew homeowners’ policies that it feared would have forced it to cover mold damage.

The 7-0 decision overturns rulings that required the carrier to renew 400,000 insurance policies that were thought to include coverage for all risks to dwellings, not just named perils. The high court also reversed orders by the 13th Court of Appeals that would have brought a $4 million payday to class-action attorneys who shepherded the case through two decades of litigation, as well as a second group of attorneys who represented plaintiffs in a separate but related class-action lawsuit.

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