Insurer Wins Fla. Drywall Coverage Row On Pollution Exclusion

Law360, New York (July 19, 2012, 7:38 PM EDT) -- A Florida federal court ruled Monday that a pollution exclusion in a construction company's policy with First Specialty Insurance Corp. barred coverage of a putative class action in Louisiana over Chinese drywall-related injuries and property damage.

Miltion Construction Co. had argued that First Specialty was obligated under two commercial general liability policies to cover a lawsuit brought by condominium residents over defective drywall. The drywall emitted sulfur that damaged property and caused health problems, including neurological harm, according to the underlying suit.

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