Ruling Enlightens Insurers On How To Count Drywall Events

Law360, New York (February 22, 2013, 7:25 PM EST) -- A Pennsylvania federal court recently held in an insurance dispute that claims over defective Chinese drywall arose out of a single occurrence, providing rare guidance on a basic coverage issue that most other courts weighing drywall coverage fights have not yet tackled.

U.S. District Judge Gene Pratter sided with Cincinnati Insurance Co. in a fight with wholesaler Devon International Inc. and its affiliates, ruling on Feb. 15 that underlying drywall claims stemmed from one event: the shipment of allegedly defective drywall from China to the U.S.

Though judges will rely on the law in their own jurisdiction before deciding the occurrence...

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