Originally published in Insurance Law360 - November 8, 2011.
Federal and state courts in Virginia, Florida, and Louisiana have now published at least twenty-one rulings on insurance coverage actions related to Chinese Drywall. The outcomes and dispositive issues have varied, with insurers prevailing so far in seventeen of the twenty-one major decisions. Where insurers have prevailed, courts have ruled that pollution, latent defect, faulty materials, or corrosion exclusions preclude coverage or that the insured lacks a legal obligation to pay sums as damages.
Some patterns have emerged from the decisions to date. The Chinese Drywall issue that has received the most judicial attention is application of pollution exclusions. Almost all of the twenty-one major decisions in these states have included pollution exclusion rulings, and these rulings are the focus of this article. With limited exceptions, courts in Virginia and Florida have found that pollution exclusions preclude coverage in Chinese Drywall cases. Judicial treatment from courts in Louisiana has been more mixed.
Please see full article below for more information.
Firefox recommends the PDF Plugin for Mac OS X for viewing PDF documents in your browser.
We can also show you Legal Updates using the Google Viewer; however, you will need to be logged into Google Docs to view them.
Please choose one of the above to proceed!
LOADING PDF: If there are any problems, click here to download the file.