Insurer Must Cover Developer In Drywall Suit: Judge

Law360, New York (July 15, 2011, 1:26 PM EDT) -- A Virginia federal judge on Thursday refused to reconsider a ruling that Builders Mutual Insurance Co. is obligated to defend Parallel Design & Development in litigation over allegedly toxic drywall from China.

U.S. District Judge Mark Davis stuck by a May 13 order that said the exclusion for pollutants in the $2 million insurance policy that Builders Mutual issued to Parallel was ambiguous and did not clearly apply to hazardous sulfide gases allegedly emitted from drywall that the developer used in home construction.

The underlying suit...
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