Appeals Court Vacates Judgment in Virginia Chinese Drywall Insurance Case

RICHMOND, Va. — A federal appeals panel has vacated an award of summary judgment to an insurer in a Chinese drywall coverage action after the realignment of an indispensable co-insurer as plaintiff in the case resulted in a loss of federal jurisdiction.

The Nov. 20 decision from the 4th Circuit U.S. Court of Appeals sends the matter back to district court where it will be dismissed nearly three years after Builders Mutual Insurance Co. filed the lawsuit against Virginia contractor Dragas Management Corp. The insurer filed a declaratory judgment action in April 2009 after refusing to provide coverage for a …