A Louisiana judge has ruled against an attempt by Audubon Insurance Co. to use certain policy exclusions to deny a Chinese drywall claim. The insurer, a subsidiary of American Insurance Group, had cited three exclusions in its denial of the claim: a pollution exclusion; a gradual or sudden loss exclusion; and faulty, inadequate or defective planning exclusion.
The case was brought by Simon and Rebecca Finger in Orleans Parish Civil District Court. In granting the plaintiffs’ motion, Judge Lloyd Medley ruled that the gradual or sudden loss does not apply because the damage — in this case rust or other corrosion — “is the loss, not the cause of the loss.” As to the faulty, inadequate or defective planning exclusion, the judge said Audubon provided no clear definition of the such an exclusion. » More: Exclusions Used to Deny Chinese Drywall Damage Claim Don’t Apply, Louisiana Judge Rules
