Pollution Exclusion Struck Down in Chinese Drywall Litigation.

In the case of Simon Finger and Rebecca Finger vs. Audubon Insurance Co, Audubon denied the plaintiffs’ claim for first-party coverage pursuant to, among other things, a pollution exclusion. The state trial court ruled for the homeowners and held that the pollution exclusion “was never intended to apply to residential homeowners claims for damages caused by substandard building materials.” While appeals are likely, for the moment, this decision has significant coverage implications for CGL carriers with drywall exposure.

For more information about this post, please contact Bob Cosgrove at rcosgrove@wcmlaw.com.

http://www.nola.com/business/index.ssf/2010/03/orleans_judge_says_policy_excl.html

http://www.businessinsurance.com/article/20100331/NEWS/100339980