Va. Judge: Drywall Replacement Not An Occurrence Under CGL Policy

NORFOLK, Va. - A federal judge has ruled that the removal and replacement of Chinese drywall does not constitute an occurrence under insurance policies sold to a supplier-installer that was on the losing end of a $4.9 million arbitration award last year in Virginia. Dragas Management Corp. v. Hanover Insurance Co., et al., No. 10-547 (E.D. Va.).

Judge Rebecca B. Smith of the U.S. District Court for the Eastern District of Virginia ruled July 21, however, that while the replacement of drywall is not considered an occurrence under the policies damage caused by the Chinese import is covered and constituted …