Insurer: Parties Must Arbitrate Drywall Pollution Exclusion Dispute

CHARLOTTE, N.C. - An insurance company sued by a manufacturer of allegedly defective, American-made drywall has moved to dismiss the case, arguing that the coverage dispute is governed by an arbitration agreement contained in the subject policy. New NGC Inc. v. ACE American Insurance Co., et al., No. 10-22 (W.D. N.C.).

In a Feb. 22 motion filed in U.S. District Court for the Western District of North Carolina, National Union Fire Insurance Co. argues that interpretation of a pollution exclusion it says bars coverage of underlying claims against the drywall manufacturer should be arbitrated pursuant to the Federal Arbitration Act.