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Coverage Issues Under Homeowners' Insurance Policies in Chinese Drywall Cases

By Travis B. Wilkinson and Seth A. Schmeeckle
August 30, 2011

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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