On July 6, 2009, Dragas Management Corporation ("Dragas"), named in the lawsuit filed in Eastern District of Virginia allegedly as the developer of residential homes in a developmental complex which installed imported Chinese Drywall material, filed a Third-Party Complaint against Hanover Insurance Co. and Citizen Insurance Company of America seeking insurance coverage under the commercial general liability and umbrella insurance policies they issued to the subcontractor.
According to the Third-Party Complaint, Dragas alleges the agreements with the subcontractor "fall squarely within the conditions designating Dragas as an additional insured in the CGL Policies affording coverage to Dragas for damages from [subcontractor's] work related to the imported drywall. The complaint alleges that approximately 74 homes in the development contain the imported Chinese Drywall.
For a copy of the Complaint click here
By Jeffrey L. Kingsley and Daniel W. Gerber