Centerline Can't Nix Insurer's Drywall Coverage Suit

Law360, New York (July 22, 2011, 6:30 PM EDT) -- A Florida federal judge on Wednesday denied Centerline Home Construction Inc.’s request to dismiss Mid-Continent Casualty Co.’s suit seeking to avoid defending and indemnifying the housing developer against defective Chinese drywall claims.

U.S. District Judge Patricia Seitz ruled that the case contained different claims than those in a dispute between the parties in a Louisiana-based multidistrict litigation over defective drywall, and therefore did not meet standards for dismissal under the first-to-file rule.

Centerline hit MCC with a suit in the MDL in January 2010, alleging breach...
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