Alabama Judge Dismisses Drywall Coverage Suit for Lack of Jurisdiction

MOBILE, Ala. - A federal judge in Alabama has dismissed a declaratory judgment action filed against a homebuilder after the plaintiff-insurer failed to provide sufficient evidence that Chinese drywall damage to a home built by the insured would exceed $75,000. SUA Insurance Co. v. Classic Home Builders LLC, et al., No. 10-388 (S.D. Ala.).

Judge William H. Steele said Nov. 17 that the U.S. District Court for the Southern District of Alabama cannot retain jurisdiction over the case because it has not been shown by a preponderance of the evidence that underlying damages would exceed the amount in controversy requirement …