Judge Allows Drywall Insurance Action to be Dismissed After Builder Withdraws Coverage Demand

PENSACOLA, Fla. — A federal judge in Florida has dismissed a declaratory judgment action after the defendant insured opted to withdraw its demand for coverage rather than reply to the insurer’s claim that it was not obligated to provide a defense against Chinese drywall claims. First Specialty Insurance Corp. v. Williams-Brown Inc., No. 11-527 (N.D. Fla.).

Judge M. Case Rodgers of the U.S. District Court for the Northern District of Florida ruled May 14 that without a demand for coverage under the subject policy, there no longer remains a controversy that can be decided based on the insurer’s suit.