First Specialty Says Exclusions Bar Coverage for Fla. Condo Drywall Class Action

MIAMI - An insurer for a construction company has filed a declaratory judgment action in federal court, claiming it has no duty to defend or indemnify against a class action filed by residents of a Florida condominium complex that was built with Chinese drywall. First Specialty Insurance Corp. v. Milton Construction Co., No. 12-20116 (S.D. Fla.).

In a complaint filed Jan. 11 in U.S. District Court for the Southern District of Miami, First Specialty Insurance Co. contends that allegations against insured Milton Construction Co. are excluded from coverage under policies it sold the builder.

Milton Construction was named in a …