Va. Judge Finds Coverage for Drywall Claims, Says Exclusion Terms Ambiguous

NEWPORT NEWS, Va. - The same federal judge who reached the opposite conclusion for an insurer in a related declaratory judgment action has ruled that a total pollution exclusion in a policy does not bar coverage for Chinese drywall-related property damage and personal injury claims. Builders Mutual Insurance Co. v. Parallel Design & Development LLC, No. 10-68 (E.D. Va.).

Judge Mark S. Davis of the U.S. District Court for the Eastern District of Virginia ruled May 13 that despite the existence of the exclusion in the applicable policy, Builders Mutual Insurance Co. has a duty to defend a builder against …