Builders Mutual Insurance Company v. Dragas Management Co.


United States District Court - Eastern Virginia

NAHB Involvement


Builders Mutual Insurance Company filed suit against Dragas Management Corporation seeking a judicial declaration that it was not liable for coverage of Chinese drywall-related claims under the commercial general liability policy it issued to Dragas' management. The builder remediated properties that contained drywall imported from China and then sought reimbursement from Builders Mutual under its Comprehensive General Liability (CGL) policy for the funds it expended for remediation.

Dragas filed a Motion to Transfer with the U.S. Judicial Panel on Multidistrict Litigation (MDL Panel) to have the case consolidated with other Chinese drywall-related cases previously transferred by the MDL Panel to the U.S. District Court for the Eastern District of Louisiana.

On Jan. 25, 2010, NAHB filed an amicus brief in support of Dragas' Motion to Transfer. The MDL Panel denied the Motion to Transfer on Feb. 5, 2010. The Panel concluded that because there were no homeowner claims against Dragas in the MDL, the Builders Mutual case was not related to the other claims currently pending in the MDL.Builders Mutual had filed its suit against Dragas after Dragas sought reimbursement for funds expended for the costs of remediation.