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The recent litigation concerning insurance coverage under homeowners' insurance policies for damages related to Chinese drywall has produced a number of decisions at the district court level in various state and federal courts. Recently, a Louisiana Court of Appeal rendered a decision in what is believed to be the first state or federal appellate decision regarding insurance coverage for damages allegedly caused by Chinese drywall under a homeowners' insurance policy. In Ross v. C. Adams Construction & Design, 10-852 (La.App. 5 Cir. 6/14/11), __ So.3d __, 2011 WL 2328271, the Louisiana Fifth Circuit affirmed the granting of a summary judgment in favor of the defendant insurer and held that the claims made by the plaintiff homeowners for damages as a result of Chinese drywall in their home were excluded from coverage. The Ross case will no doubt serve as a guide for insurers in litigating coverage in Chinese drywall claims under a homeowners' policy. In that same light, this article provides a brief sketch of the various coverage considerations that will be important to insurers in Chinese drywall cases. A brief discussion of Ross will be helpful as a guide to the typical claims made in Chinese drywall cases.
The Ross Decision
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