Insurers Want Builder's $4.9M Drywall Suit Tossed

Law360, New York (January 31, 2011, 5:53 PM EST) -- Hanover Insurance Co. and Citizens Insurance Co. of America have asked a federal court to toss a homebuilder's $4.9 million lawsuit over damages caused by defective Chinese drywall.

Homebuilder Dragas Management Corp. had no “legal obligation” to fix anyone's house — since it chose to shell out millions for repairs before anyone even sued — so Hanover's and Citizens' policies do not cover it, the insurers said Friday in a motion filed in the U.S. District Court for the Eastern District of Virginia.

The insurers said...
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