Fla. Judge: Pollution Exclusion Doesn't Bar Coverage of Drywall Removal and Lawsuit

TAMPA, Fla. - A judge in Florida has ruled that a pollution exclusion in a policy issued to a homebuilder does not bar coverage for a lawsuit the builder filed to recover remediation and litigation costs from a Chinese drywall supplier. Auto-Owners Insurance Co. v. American Building Materials Inc., et al., No. 10-313 (M.D. Fla.).

In a May 17 order, Judge Susan C. Bucklew of the U.S. District Court for the Middle District of Florida held that the exclusion does not apply where the underlying lawsuit fails to allege that the pollution and resulting drywall damage arose while the supplier …