Va. Judge Changes Course on Chinese Drywall Coverage Claims

NORFOLK, Va. - A federal judge in Virginia who previously dismissed claims asserted by a builder seeking coverage for remediation of homes affected by Chinese drywall has reversed course after the builder claimed it was under a legal obligation to make the repairs. Builders Mutual Insurance Co. v. Dragas Management Corp., No. 09-185 (E.D. Va.).

U.S. District Court Judge Rebecca Beach Smith of the Eastern District of Virginia ruled July 15 that the threat of legal action against Dragas Management Corp. for damage caused by Chinese drywall provides sufficient evidence that coverage may be available under policies issued by two …