First Specialty Sues Developer Over Coverage of Townhouse Drywall Class Action

PENSACOLA, Fla. - An insurer that offered CGL coverage to a developer named in a Chinese Drywall class action has filed a declaratory judgment action in Florida, arguing it owes neither a duty to defend nor indemnify the insured. First Specialty Insurance Corp. v. Williams-Brown Inc., No. 11-527 (N.D. Fla.).

First Specialty Insurance Co. says in a lawsuit filed Nov. 3 in U.S. District Court for the Northern District of Florida that three exclusions in the policy sold to Williams-Brown Inc. bar coverage for drywall claims asserted in the class action now pending in MDL 2047.

According to the complaint, …