WCI Communities Trustee Sues Insurers Over Coverage Obligations

WILMINGTON, Del. - The trustee of a fund created by a bankrupt builder to pay Chinese drywall claims has sued numerous insurers seeking coverage for property damage and personal injury claims asserted against the company and its subcontractors. Pate v. American International Specialty Lines Insurance Co., et al., No. 09-7791 (E.D. La.).

Robert C. Pate, the trustee assigned to oversee the drywall fund created by the Chapter 11 reorganization of WCI Communities Inc., filed the lawsuit Dec. 23 in U.S. District Court for the Eastern District of Louisiana. The complaint names more than a dozen insurers that Pate says have …