Judge Dismisses Florida Couple's Counterclaim for Coverage of Drywall Suit

MIAMI - A federal judge has dismissed a counterclaim for declaratory judgment brought by Florida homeowners who were named in a Chinese drywall coverage action that Mid-Continent Casualty Co. filed against the couple's builder. Mid-Continent Casualty Co. v. Eastern Construction Group Inc., et al., No. 10-21041 (S.D. Fla.).

Judge Donald L. Graham of the U.S. District Court for the Southern District of Florida ruled Oct. 10 that the homeowners' demand for coverage related to their underlying drywall claim cannot be decided until after it has been determined that Mid-Continent has an obligation to indemnify its insured.

The counterclaim was brought …