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If you can show that faulty installation was the cause of the mold problem your parents could definitely sue the installer for damages related to mold, and possible to his health problems.
To prove negligence (negligent installation), you would have to show that the installer did not live up the ordinary standard of care for an AC installer. Basically, it is a case where if it was incorrectly installed through his own error, you would win. The issue is showing that it was installed incorrectly, and not that something changed over time through no fault of the installer, and that it did in fact cause the mold.
But yes, there is no reason your parents could not sue and win. The installer most likely has insurance to cover these things, so you shouldn't have trouble finding a lawyer to represent them.
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I see. Yes, they might have a claim, but they would definitely need a doctor to agree that the mold at least contributed to the pneumonia problems. Again, if true, then yes, the company would be responsible. Even though you and I know that mold causes breathing trouble and pneumonia, you still have to find an expert to agree with that. That should not be too terribly difficult in this case. But if he has other problems or other possible contributors, that could complicate the issue.
The botXXXXX XXXXXne is that the key is getting a physician to go on record that the mold caused the health problems.
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