McMahon Cleans-Up in Mold Mishap
By Robert Warne - May 8, 2003A former American Family Publishers' sweepstakes pitchman and Tonight Show sidekick was recently visited by the insurance industry’s version of the prize patrol.
Ed McMahon, in a $20 million mold-related lawsuit, so far has managed to draw approximately $7 million from an insurance company, two adjusters and four mold clean-up firms.
The latest detail to emerge from a settlement reached in April is that Travelers Property Casualty Corp. agreed to pay $5.05 million to McMahon.
Originally American Equity Insurance Co. was named in the suit, but when Travelers acquired the company in 2001 it assumed the insurer’s portion of liability in the case.
McMahon’s problems began when a water pipe in his Beverly Hills estate ruptured in 2001. Alliance Environmental Group initially handled the cleanup, but instead of removing the mold, workers just painted over it.
As a result, the mold claimed the life of McMahon’s sheepdog and both he and his wife became ill. Per doctor’s orders, eventually the couple moved out of their house until the problem could be remedied.
Allan Browne, McMahon’s lawyer described the ordeal a year ago to ABC News as a horrific nightmare that only Stephen King could write about.
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