4th Cir. Affirms Decision Applying Pollution Exclusion to Chinese Drywall Claims

RICHMOND, Va. – The Fourth Circuit U.S. Court of Appeals has cited a recent state Supreme Court ruling in affirming that a pollution exclusion bars coverage for suits arising from Chinese drywall used in the construction of a Virginia housing development.

The federal appeals court issued the decision March 12 after parties on both sides of the declaratory judgment action Evanston Insurance Co filed in 2010 conceded that the Virginia Supreme Court’s Nov. 11 decision in a similar drywall coverage dispute applied to the case.

Evanston was awarded summary judgment in September on claims that total pollution exclusions in three …