Chinese Drywall and Duty to Defend
Great American JWR Construction Services and Gulf Reflections Condominium Association , Case No. 10-61423-CV-Huck/Branstra, U. S. District Court, Southern District of Florida, Order entered on April 9, 2011. Summary Judgment granted in favor of contractor and owner and against surety on the sole issue of the duty to defend an underlying suit in Lee County Circuit Court (Case No. 10-CA-000371) for damages caused by the installation of Chinese drywall. Applying New York law as required by the policy, the exclusion for “Faulty work/own work” was rejected because the drywall installation itself was not alleged to be defective, and the exclusion for “Products Liability” was also rejected because the construction was a “service” and not a “product,” and because the contractor did not “handle” the drywall. Surety was also ordered to reimburse for defense costs incurred to date, but further proceedings in this case was stayed pending outcome of the underlying suit. (from RPPTL Subcommittee)...