Ala. Judge Orders Chinese Drywall Defendants to Pay Insurer $345,000

MOBILE, Ala. — A federal magistrate judge in Alabama has ordered companies named in Chinese drywall litigation to pay more than $300,000 in deductibles to Scottsdale Insurance Co. after the company provided nearly $2 million in defense and indemnity for the claims.

In a June 11 decision awarding summary judgment to Scottsdale, U.S. Magistrate Judge Katherine P. Nelson of the Southern District of Alabama ruled that the drywall defendants are jointly and severally liable for the deductible payments pursuant to terms of four commercial general liability policies issued by the insurer.

Scottsdale sued The Mitchell Co. and three affiliates along …