LOS ANGELES — Settlements in a mold lawsuit filed by former Tonight Show sidekick Ed McMahon have eclipsed the $7 million mark, HarrisMartin Publishing is reporting. McMahon v. American Equity Insurance Co., et al., No. BC271423 (Calif. Super. Ct., Los Angeles Cty.).

According to a transcript of a recent hearing in the matter, which was made available earlier this week and was obtained exclusively by HarrisMartin Publishing, McMahon settled his mold-related lawsuit with all but one defendant for amounts totaling $7.03 million — substantially more than the $230,000 settlement figure announced last month. The hearing had been scheduled to organize procedural matters related to claims pending against two non-settling defendants.

McMahon and his wife sued several companies, including their homeowners’ insurer, in April 2002 for failing to adequately handle remediation of mold in their Los Angeles mansion. The mold was allegedly caused by a pipe that burst in the entertainer’s den, according to the lawsuit. The suit also claimed that the insurer and its adjusters failed to hire qualified remediation and testing experts to completely rid the home of mold. The McMahons alleged that they suffered severe mold-related injuries as a result of the defendants’ negligence and that the mold infestation was a contributing factor in the death of the their pet dog.

Although the settlement amounts were subject to confidentiality agreements, Honorable Mary Ann Murphy, the Los Angeles County Superior Court judge hearing the matter, indicated that confidentiality 'flies in the face' of good faith settlement discussions involving the non-settling defendants.

'How in the world do you think you’re going to get a good faith on your settlements if I can’t know and nobody else can know what the amounts of the settlements are?' Judge Murphy asked.

With that, she ordered the individual amounts of each settlement to be read into the record. According to the hearing transcript, the only defendants that had not settled at that point were Controlled Environmental Solutions, which later settled for $230,000, and Monteleone Interiors.

The individual settlement amounts recorded during the hearing are: Travelers and American Equity Insurance Co. and the other related insurance entities ($5.05 million); Southern California Insurance Adjustors, Robert Koster, and Ken Koster ($250,000); Pacific Health and Safety ($250,000); Michael Parkinson d/b/a California Power Vac ($3,000); Alliance Environmental Group, Inc. ($500,000); and Benchmark MPE, Ltd. ($750,000).

Including Controlled Environmental Solutions' $230,000 settlement reported in mid-April, the total settlement is $7.033 million. The McMahons sought $20 million in their original complaint.

The remaining defendant, Monteleone Interiors, Inc., had not yet mediated the claims as of the hearing date because, according to the transcript, a claims adjuster from Monteleone’s insurance carrier, Golden Eagle Insurance Co., was on vacation during a previously scheduled settlement conference.

For more information on this case, please see 'Trial Court for McMahon Mold Case Cannot Shorten Minimum Notice Period for Summary Judgment, Appeals Court Says' in the March 2003 issue of COLUMNS-Mold, and 'Ed McMahon Sues Insurer, Others Over Mold–Infested Mansion' in the May 2002 issue of COLUMNS-Mold.

Ed McMahon and Pamela McMahon, plaintiffs/cross-defendants, are represented by Allan Browne and Michael J. Olecki of Browne & Woods, L.L.P., in Beverly Hills, Calif.; by Michael J. Olecki of Grodsky & Olecki, L.L.P., in Santa Monica, Calif.; Alexander Robertson, IV, of Robertson & Vick, L.L.P., in Calabasas, Calif.; and Brian S. Kabateck and Christian Garris of Kabateck & Kropff, L.L.P., in Los Angeles.

Benchmark MPE, Ltd., defendant, is represented by Kimberly J. Roberts of Manning & Marder, Kass, Ellrod, Ramirez, L.L.P., in Los Angeles; and by Brad J. Landon of Dougherty & Landon in Westlake Village, Calif.

Monteleone Interiors, Inc., defendant, is represented by Patrick S. Schoenburg and David F. Wood of Wood, Smith, Henning & Berman, L.L.P., in Los Angeles.

Alliance Environmental Group, Inc., defendant, is represented by William E. Pallares and Jason Meyer of Gordon & Rees, L.L.P., in Los Angeles and San Diego.

Michael Parkinson d/b/a California Power Vac, defendant, is represented by Jose R. Gonzalez and Alan R. Jampol of Jampol & Zimet in Los Angeles.

Southern California Insurance Adjustors, Robert Koster, and Ken Koster, defendants, are represented by Bethany R. Nelson and Michael C. Robinson of Robinson, Di Lando & Whitaker of Los Angeles.

Controlled Environmental Solutions, defendant, is represented by Michael D. O’Shea of the Law Offices of Michael D. O’shea in Burbank, Calif.

Pacific Health and Safety Consulting, Inc. is represented by Judith Zipkin of Lewis, Brisbois, Bisgaard & Smith, L.L.P., in Los Angeles.

American Equity Insurance Company, The Travelers Indemnity Company, Travelers Property Casualty Insurance Company and Travelers Insurance Group Holdings, Inc., defendants, are represented by David B. Babbe of Morrison & Foerster, L.L.P., in Los Angeles (not present at March 4 hearing).

For more information you may also contact:

Alan L. Wozniak, CIAQP

(800) 422-7873 ext. 802