5th Circuit Finds No Coverage for Maker of Outdoor Building Products

NEW ORLEANS - The 5th Circuit has ruled against an outdoor building products manufacturer seeking coverage for product liability suits, finding that the applicable state insurance law clearly bars coverage for "faulty workmanship" claims. Advanced Environmental Recycling Technologies Inc. v. American International Specialty Lines Insurance Co., No. 09-11075 (5th Cir.).

The Circuit Court applied Arkansas law to the claim by Advanced Environmental Recycling Technologies Inc. in its Oct. 22 opinion affirming summary judgment for AERT's insurer, American International Specialty Lines Insurance Co.

AERT sought coverage for homeowners' class actions alleging that AERT's outdoor deck products were susceptible to mold and …