Duty to Defend Question Can Proceed in Fla. Drywall Case; Duty to Indemnify Issue Stayed

PENSACOLA, Fla. - A federal judge has ruled that a determination of an insurer's duty to defend a Florida builder against Chinese drywall claims can be made without resolution of the underlying case for which it seeks coverage. First Specialty Insurance Co. v. Williams-Brown Inc., No. 11-527 (N.D. Fla.).

Denying, in part, a motion to stay the case until the separate state court drywall action has resolved, Judge M. Casey Rodgers ruled Feb. 6 that First Specialty Insurance Co. coverage action against Williams-Brown Inc. should be allowed to proceed in the U.S. District Court for the Northern District of Florida. …