Global Drywall Settlement with Insurer Breaks Down Over Allocation Issues

NORFOLK, Va. — A global settlement that was reportedly reached in May to resolve all Chinese drywall claims asserted against companies insured by the Hanover Insurance Co. has been terminated, according to documents filed in a Virginia coverage action. Dragas Management Corp. v. The Hanover Insurance Co., et al., No. 10-547 (E.D. Va.) Drywall MDL.

In status reports filed June 11 in the U.S. District Court for the Eastern District of Virginia, Hanover and builder Dragas Management Corp. informed the court that the previously reported deal fell apart after the parties were unable to reach an agreement on allocation of …