Federal Drywall Coverage Case Can Continue Despite Pending State Case, Judge Rules

NORFOLK, Va. - A federal judge has refused to stay a declaratory judgment action by an insurer to determine its coverage obligations for an underlying Chinese drywall suit that was brought by Virginia homeowners in state court. Builders Mutual Insurance Co. v. The Futura Group, et al., No. 10-324 (E.D. Va.).

Judge Mark S. Davis of the U.S. District Court for the Eastern District of Virginia ruled April 21 that because insurer Builders Mutual Insurance Co. is not a party to the underlying state court action, resolution of its coverage action may be made independent of the homeowners' case.

Builders …