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$32 million mold award slashed
Texas appeals court eliminates punitive damages in Ballard v. Farmers
Inman News Features
December 20, 2002
The 3rd Court of Appeals in Texas yesterday reduced a $32 million jury verdict
that was awarded last year to Melinda Ballard in a case that has grown to be the
most widely recognized toxic mold insurance claim dispute.
Under the appellate court's ruling, Ballard's award was reduced to $4 million in
damages, $2.5 million in interest and approximately $2 million in attorney's
fees, according to news reports.
Thursday's ruling "found sufficient evidence to uphold the jury's findings that
the insurance company breached its duty of good faith and fair dealing toward
Ballard. But the court found no evidence that the company did so 'knowingly,'
prompting it to throw out the ($17 million) award for punitive damages and
mental anguish damages," reported a MySanAntonio.com news story.
Consumer advocates expressed concern that the ruling, by eliminating punitive
damages, removes incentives for insurance companies to respond appropriately to
the claims process.
Insurance industry analysts hope the reduced verdict will help put to an end the
landslide of mold litigation that over the past few years has contributed to
rising homeowners' insurance premiums nationwide.
"Was justice served? No. This was a decision that hurt every Texas homeowner. It
was bad behavior before and now it’s bad behavior without penalties," said
Ballard in the MySanAntonio.com report. |
