Court Finds for Drywall Installer on Coverage for Arbitration Award

SACRAMENTO, Calif. - A federal judge has denied an insurer's motion for summary judgment on mold-related coverage claims brought by a drywall contractor's bankruptcy trustee, and found for the insured on the duty to indemnify. McGranahan v. The Insurance Corporation of New York, No. 2:07-0065 FCD KJM (E.D. Calif.).

Judge Frank C. Damrell Jr. of the U.S. District Court for the Eastern District of California said in a 17-page memorandum on Nov. 10 that The Insurance Company of New York failed to present any evidence that an impaired property exclusion applied to preclude coverage.

In 2006, trustee Michael D. McGranahan …