Insurer Sued for Bad Faith After Refusing Coverage for Drywall Damage

GRETNA, La. - A Louisiana couple has sued State Farm Fire and Casualty Company, accusing the homeowners' insurer of bad faith for refusing to cover damage caused by allegedly defective Chinese drywall. West v. State Farm Fire and Casualty Co., No. 676-115 (La. Dist. Ct., Jefferson Prsh.).

Thomas and Gloria West contend that State Farm is obligated under their homeowners' policy to pay for significant property and financial damage incurred when the Wests gutted their Marrero, La., home to repair damage caused by Hurricane Katrina.

According to the lawsuit, which was filed July 28 in Jefferson Parish District Court and …