Federal Judge Rules for Insurer in Virginia Chinese Drywall Case
Federal Judge Rules for Insurer in Virginia Chinese Drywall Case
Insurance & Financial Advisor (06/07/10)
In Norfolk, Va., federal Judge Robert Doumar recently ruled that an insurer does not have to pay a homeowner's claim related to Chinese drywall, although future losses could be covered under a policy's ensuing loss provision. The case involved the use of Chinese drywall by the now defunct Venture Supply Co. in a house; and the drywall caused corrosion of electronics and sulfurous odors, which owners claimed caused sinus and respiratory issues and forced them to move. The ruling is likely to be cited in similar cases that are still pending in Florida, North Carolina, Louisiana, Alabama, and Mississippi. With more than 300 million square feet of Chinese drywall used between 2004 and 2007 and a recent recommendation from the federal government that the drywall be removed from homes, additional claims and legal battles are likely.
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