Fla. Chinese Drywall Coverage Case Halted Pending Outcome of Developer’s Suit Against Installer

MIAMI — A federal judge in Florida has stayed a long-pending Chinese drywall coverage case, determining that numerous factual issues that could impact the insurers’ defense and indemnity obligations have yet to be resolved in the underlying state court action.

In an Aug. 22 order, Judge Patricia A. Seitz of the U.S. District Court for the Southern District of Florida said abatement is necessary so that the state court can decide issues involving the quality of work and the timing and discovery of drywall-related damage that led to the coverage dispute.

“The Court believes that permitting the state case …