Employers Mutual Sues NorthStar Homes over Chinese Drywall Damage in Ga.

ATLANTA - Employers Mutual Casualty has filed a declaratory judgment action against NorthStar Homes, arguing that several policies it sold the builder do not cover alleged Chinese drywall damage in a Georgia home constructed by the company. Employers Mutual Casualty Co. v. NorthStar Homes, et al., No. 12-88 (N.D. Ga.).

The Jan. 10 lawsuit filed in U.S. District Court for the Northern District of Georgia says that at least one of the Employers Mutual polices was not in effect at the time the alleged damage occurred and others contained exclusions that bar coverage for Chinese drywall.

Employers Mutual agreed to …