Drywall Supplier Sues Insurers in Colo. for Coverage, Bad Faith

DENVER - A drywall supplier has sued several insurance companies in Colorado, seeking coverage and a declaration that one of its insurers acted in bad faith by agreeing to provide a defense for underlying claims, then unexpectedly filing a declaratory judgment action of its own against the insured. Probuild Holdings Inc., et al. v. Granite State Insurance Co., et al., No. 10-503 (D. Colo.).

Probuild Holdings Inc. filed the complaint March 3 in U.S. District Court for the District of Colorado and argues that policies it bought from about a dozen insurers provide defense and indemnification for Chinese drywall claims …