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More Chinese drywall suits to come

13 January 2010

A recent lawsuit against 14 insurance companies could be the start of a trend in Chinese drywall legal action.

Read more: chinese drywall

A recent lawsuit against 14 insurance companies could be the start of a trend in Chinese drywall legal action.

The WCI Chinese Drywall Trust, a body formed in 2009 out of the bankrupt residential homebuilder WCI Communities, recently filed a suit in the eastern district of Louisiana to seek compensation for losses arising from claims for the development and sale of homes allegedly containing defective Chinese manufactured drywall.

According to law firm, Anderson Kill & Olick, WCI, its subsidiaries and subcontractors purchased insurance policies with aggregate limits of more than $200m during the Chinese drywall policy period which began in 2006. More than 700 homeowners may seek recovery from insurers that include units of American International Group and Zurich Financial Services.

This is the first insurance coverage action...


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