Drywall Cases Could Hinge On Pollution Clause

Law360, New York (May 14, 2009, 12:00 AM EDT) -- Insurance lawyers are preparing for a wave of litigation over liability claims related to Chinese drywall, which homeowners have blamed for property damage as well as respiratory and other injuries. Attorneys say the outcome of the battles to come will likely hinge, at least in part, on one point: whether a pollution exclusion applies.

In what is believed to be the first of many of these disputes, builder Dragas Management Corp. has been sued in a declaratory judgment action by its insurer, Builders Mutual Insurance Co.,...
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