Ala. Judge Says Builder's Coverage May Not Be Limited by Property Acquisition

MOBILE, Ala.- Two insurance policies sold to a builder named in a Chinese drywall class action may extend coverage to property damage that occurred before the underlying plaintiffs purchased the homes where the damage was ultimately discovered, a federal judge in Alabama has ruled. SUA Insurance Co. v. S&O Investments, et al., No. 10-313 (S.D. Ala.).

Denying, in part, a motion for summary judgment filed by SUA Insurance Co. in a declaratory judgment action against S&O Investments, Judge William H. Steele of the U.S. District Court for the Southern District of Alabama held that nothing in the relevant policies unambiguously …