Tackling Pollution Exclusions To Chinese Drywall Claims

Law360, New York (November 8, 2011, 2:42 PM EST) -- Federal and state courts in Virginia, Florida and Louisiana have now published at least 21 rulings on insurance coverage actions related to Chinese Drywall. The outcomes and dispositive issues have varied, with insurers prevailing so far in 17 of the 21 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...
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