Judge Rules Corrosion, Faulty Materials Exclusions Bar Coverage for Drywall Claims

BATON ROUGE, La. - A federal judge in Louisiana has dismissed a Chinese drywall coverage case, determining that the corrosion and faulty materials exclusions in the plaintiffs' homeowners policy bar coverage for their claim. Dupuy v. USAA Casualty Insurance Co., No. 11-336 (M.D. La.).

Judge James J. Brady of the U.S. District Court for the Middle District of Louisiana granted USAA Casualty Insurance Co.'s motion to dismiss on March 9, in part because of inconsistencies with allegations the plaintiffs made in an underlying MDL action regarding the mechanism by which drywall causes damage to their property.

Cullen and Mary Dupuy …