AUSTIN, Texas -- Melinda Ballard and Farmers Insurance has settled their multi-million-dollar dispute over homeowners’ coverage of mold claims. Terms are confidential according to Ballard and counsel, but the Texas Supreme Court this morning ended the appeal and sent the case back to trial court to finalize the settlement terms, HarrisMartin Publishing is reporting. Fire Insurance Exchange v. Ballard, No. 03-0312 (Texas Sup. Ct.).

"The parties managed to get together and resolve all of the issues," said Ballard's attorney, Douglas Alexander of Alexander, Dubose, Jones & Townsend of Austin. Farmer's counsel, Joseph Knight of Baker & Botts of Austin would offer only a similar statement.

There were indications last month that talks were underway when the parties asked the Supreme Court for a two-week abatement, or postponement of any deadlines. That order expired on March 2. The joint motion to vacate the appeal was filed on March 18.

Farmers was seeking to end its liability with the $2 million already paid to the Ballard family for damage resulting from mold contamination of their home. In June 2001, A jury awarded $4 million in actual damages and $28 million in punitives to Ballard and her husband, but an appeals court eliminated the punitive damages and reduced the compensatory damages award to $2 million.

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