Scottsdale Insurance Co. Seeks $300,000 in Unpaid Deductibles for Drywall Defense

MOBILE, Ala. - Scottsdale Insurance Co. has sued The Mitchell Company and other defendants in Alabama, seeking more than $300,000 in deductibles owed to the insurer for providing a defense in four Chinese drywall cases against the companies. Scottsdale Insurance Co. v. The Mitchell Company Inc., et al., No. 11-578 (S.D. Ala.).

The Oct. 7 complaint filed in the U.S. District Court for the Southern District of Alabama says that Scottsdale has paid more than $800,000 in defense costs and settlements in the underlying drywall suits, but has yet to recover any deductibles from the insureds.

Scottsdale sold The Mitchell …