Builder's Drywall Remediation Not Covered Under Va. Law, Court Rules

NORFOLK, Va. - A builder that voluntarily repaired Chinese drywall damage to several Virginia homes cannot seek insurance coverage to recoup their costs without evidence of a legal responsibility to conduct the remediation, a federal judge has ruled. Builders Mutual Insurance Co. v. Dragas Management Corp., No. 09-185 (E.D. Va.).

Judge Rebecca Beach Smith of the U.S. District Court for the Eastern District of Virginia ruled March 24 that, under Virginia law, a carrier could not have breached its duty to defend or indemnify the builder for drywall damage that was not subject to a pending lawsuit or judgment.

The …