United States District Court Judge K. Michael Moore of the Southern District of Florida has recently ruled that a pollution exclusion bars coverage for personal injuries and property damages associated with Chinese drywall. In General Fidelity Insurance Co. v. Katherine L. Foster et al, Case No. 09-80743, the Court found that the compound released by the Chinese drywall were “pollutants” within the meaning of the policy. The Court further found that, under prevailing Florida law, the application of the pollution exclusion is not limited to injury or damage caused by environmental or industrial pollution. The Court granted summary judgment to the insurer, ruling that it has no duty to defend or indemnify.
The opinion can be found here.