SAN DIEGO — A state court jury in California has awarded more than $2 million to a couple who accused their homeowner's insurer of bad faith after it refused to fully cover a mold claim that it said was limited by a mold endorsement contained in the couple's policy. Rogers v. USAA, No. n/a (Calif. Super. Ct., San Diego Cty.).

The San Francisco Superior Court jury returned the verdict on Jan. 21 against USAA, after finding in favor of plaintiffs Richard and Donna Rogers on several counts including bad faith, oppression, fraud and malice. Jurors also awarded compensatory damages for injuries the Rogers said were caused by mold exposure.

The Rogers sued USAA after it had allegedly refused to fully cover mold and water damage in their home that arose from separate leaks in 2001 and 2002.

According to sources, the Rogers' home sustained serious water damage to the master bedroom in 2001; however, the room was never adequately dried and mold began growing in the walls, causing the plaintiffs to allegedly suffer respiratory injuries. A subsequent leak, which occurred in the Rogers' kitchen in early 2002 and was the subject of the case that went to trial, caused significant damage to the floor and caused mold growth throughout the kitchen floor and cabinetry.

However, when the Rogers submitted their claim to USAA, the insurer maintained that the loss should be covered under a new policy, which included a mold endorsement limiting coverage for mold-related claims to $2,500. In their complaint, the Rogers alleged that the insurer had improperly applied the endorsement in bad faith to avoid covering the entire claim. According to sources, the Rogers had been USAA insureds for nearly 45 years and had a homeowner's policy with the company for $1.3 million.

Sources said that by the time the case went to verdict, USAA had paid all but $35,000 of the Rogers' claim. Jurors awarded the plaintiffs just that amount for their breach of contract claim. They also awarded the Rogers $200,000 each for their emotional distress and $2,500 in medical costs associated with their mold-related personal injuries. Verdicts were unanimous on questions of causation, oppression and fraud. The jury voted 10-2 in favor of plaintiffs on the issue of malice.

In addition, the jury voted 11-1 to award $1.75 million in punitive damages to the plaintiffs, according to sources. Sources also told HarrisMartin Publishing that plaintiffs have requested $300,000 in attorneys fees and related costs.

Testifying on behalf of the plaintiffs were Ronald Simon, M.D., allergist/immunologist, of the Scripps Clinic in Los Angeles. Everette Lee Herndon Jr., insurance claims expert, of Rancho Murieta, Calif.

The defendants called Edward McKinnon, insurance claims expert, of Acton, Calif.

The Rogers were represented by Charles Limandri and Rick Salpietra of the Law Offices of Charles S. Limandri in Rancho Santa Fe, Calif.

USAA was represented by Gregory C. Kane of Shifflet, Kane & Konoske in San Diego.

For more information, contact:

Alan L. Wozniak, CIAQP

(800) 422-7873 ext. 802

info@pureaircontrols.com