MDL Judge Finds No Coverage Under Homeowners' Policies for Chinese Drywall

NEW ORLEANS - The MDL judge has issued an order finding no coverage under numerous homeowners' insurance policies for damage caused by Chinese Drywall, HarrisMartin Publishing is reporting.

Judge Eldon E. Fallon issued the 50-page decision Dec. 16, granting motions to dismiss by 10 carriers that sold policies to Louisiana homeowners.

While Judge Fallon determined that drywall damage constituted a covered loss under the subject homeowners' policies and that the alleged losses could be considered "direct," "sudden" and "accidental." In addition, the MDL judge held that pollution, latent defect and dampness and temperature exclusions contained in the policies did not …