Insurer Can't Investigate Merits Of Chinese Drywall Claims

Law360, New York (June 6, 2013, 5:15 PM EDT) -- A Colorado court held Wednesday that Fireman's Fund Insurance Co. could contest only the reasonableness of ProBuild Holdings Inc.'s settlements of defective Chinese drywall claims in multidistrict and other litigation, holding the excess insurer could not investigate the merits of the underlying claims.

At issue in the suit is whether FFIC should cover a portion of ProBuild's $1.95 million settlement with Pulte Homes Corp. and opt-out claims that weren't resolved by the building materials supplier's settlement of multidistrict litigation, as well as defense costs. On Wednesday,...
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