Coverage for Remediation Costs

From the insurance coverage disputes arising from Chinese drywall litigation came a ruling by Judge Rebecca Beach Smith of the U.S. District Court in Norfolk, Va. recognizing that remediation costs are not covered absent a legal obligation but, for now, declining to rule on the issue of whether a suit or judgment against the insured is required (Builders Mutual Insurance Co. v. Dragas Management Corp.). During HB Litigation Conferences’ recent Chinese Drywall litigation and insurance coverage conference, policyholder attorney R. Johan Conrod Jr. , Kaufman & Canoles of Norfolk, Va., discussed the ruling, “legally obligated to pay as damages,” the “plain meaning” of insurance contracts and more. Hear what he had to say. (The complete recording of this program is available from the HB Store and, depending on your state, may qualify for self-study CLE.)