Plaintiffs, WCI Urge Court to Find Coverage, Apply Louisiana Law

NEW ORLEANS - The Plaintiffs Steering Committee and trustee for the WCI Communities Inc. bankruptcy have filed a motion for summary judgment in a coverage case the trustee filed, arguing that the pollution exclusion does not apply to bar coverage for damages WCI suffered as a result of Chinese drywall in homes the company built. Pate v. American International Specialty Lines Insurance Co., et al., No. 09-7791 (E.D. La.).

According to the Feb. 3 motion filed in U.S. District Court for the Eastern District of Louisiana, Judge Robert C. Pate and the PSC maintain that under the states' laws that …