The Real Deal Miami

Bankrupt builder files suit for insurance coverage against tainted drywall

January 07, 2010 05:06PM

A legal trust entity of bankrupt builder WCI Communities is suing 14 of its insurers for as much as $200 million in coverage for tainted Chinese drywall. It’s the latest lawsuit to make its way to a Louisiana court that is the principal venue for the morass of related litigation on the toxic building material that has been linked to noxious odors, corrosion in metal fixtures and possible health problems. The Bonita Springs-based company, which filed for bankruptcy last year, used Chinese drywall when it built houses across the country, including in Parkland. The suit seeks coverage of claims to allow owners to remediate their homes; insurers named in the suit include AIG’s American International Specialty Lines Insurance and Lexington Insurance. [Sun Sentinel]