Last week, my post discussed Chinese Drywall litigation specific to policyholders seeking coverage for their damages under residential policies of insurance. This week, I continue to discuss the case of Walker v. Teachers Insurance Company, which is currently pending in the Thirteenth Judicial Circuit, Hillsborough County, Florida, Civil Trial Division. Most recently, Judge Robert Foster granted the Plaintiffs’ Motion for Partial Summary Judgment for Coverage under the insurance policy.


Continue Reading Court Rules in Favor of Policyholders for Suit Brought for Damages Caused by Chinese Drywall, Part 2

The Chinese Drywall coverage litigation involving first party property insurance policies has been discussed in the past. Are Chinese Drywall Problems Covered Under Property Insurance Policies? discussed the complex issues involved and warned that these losses may not be covered. FC&S Says Ensuing Loss Coverage Applies to Chinese Drywall Claims and Chinese Drywall Claims May Be Covered Under Homeowners Policy–Favorable Developments in Louisiana gave hope to the policyholders suffering form this unexpected property loss. Unfortunately, a recent opinion, In re: Chinese Manufactured Drywall: Products Liability Litigation, issued December 16, 2010, did not rule in favor of the first party policyholders.


Continue Reading Chinese Drywall Claims Not Covered Under Homeowners Policies

First party insurance claims involving Chinese drywall have been given some hope from recent Louisiana trial court rulings. Two trial court rulings in Simon Finger and Rebecca Finger vs. Audubon Insurance Company, No. 09-8071 (Civil District Court for the Parish of Orleans, March 22, 2010), struck three affirmative defenses of the homeowners’ insurance company that denied the insurance claim to a home with Chinese drywall. The three significant exclusionary provisions of the policy struck were cited as follows:


Continue Reading Chinese Drywall Claims May Be Covered Under Homeowners Policy–Favorable Developments in Louisiana

I am always looking for "an edge." Just something to get a better chance of winning for my client–like all good litigators. This morning’s post, Chinese Drywall Losses Covered Under First Party Property Insurance Policy, mentioned how going to a NAPIA Conference can give a policyholder’s advocate that type of "edge." Let me explain how a few lessons by Ed Eshoo’s lecture can help everybody making arguments for disputed coverage claims.


Continue Reading Ensuing or Resulting Loss, and the Burden of Proving Causation Explained Simply

A guest lecturer at the National Association of Public Insurance Adjusters Mid-Year Meeting last Friday predicted that courts will find at least some of the damage caused by Chinese drywall to be covered under a first party property insurance policy. Ed Eshoo gave the lecture, "First Party Property Insurance–Chinese Drywall Claims."


Continue Reading Chinese Drywall Losses Covered Under First Party Property Insurance Policy

The insurance industry is probably calling and writing the editors of the FC&S Bulletin because the June 2009 edition correctly notes that Ensuing Loss Damage is covered under the ISO form policies for typical Chinese Drywall losses. I recently noted various coverage issues related to Chinese Drywall. A number of these cases are coming to our office because insurers are not affording first party coverage.


Continue Reading FC&S Says Ensuing Loss Coverage Applies to Chinese Drywall Claims

The coverage questions regarding problems with Chinese drywall are becoming ever more frequent in our firm. I will caution everybody that I am not giving a definitive answer. I can say that the analysis is complex, depending on which state law you are applying. As usual, the policy and the factual problems associated with the particular drywall result in some of the loss covered, all covered, or none covered. Merlin’s Woody Isom and Mary Fortson have been tasked with keeping up on coverage and recovery efforts and particular questions should go to them. After considering a number of issues, the one thing I can tell you is that anybody who claims they have a guaranteed accurate answer is puffing something stronger than is legal.

Continue Reading Are Chinese Drywall Problems Covered Under Property Insurance Policies?