Evanston Dodges Coverage For Chinese Drywall In 4th Circ.

Law360, New York (March 20, 2013, 6:54 PM EDT) -- The Fourth Circuit on Wednesday freed Evanston Insurance Co. from any obligation to cover a homebuilder in multidistrict litigation over defective Chinese drywall, citing the Virginia Supreme Court’s recent holding that a pollution exclusion can be triggered by the defective drywall.

The appeals court affirmed a Virginia federal judge’s September 2011 order granting summary judgment to Evanston over policyholder Harbor Walk Development LLC on the basis of a pollution exclusion, citing the Virginia high court’s groundbreaking November decision in TravCo Insurance Co. v. Larry Ward....
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