70 So. 3d 949
La. Ct. App.2011Background
- Rosses purchased home insured by Louisiana Citizens after renovation by builder; Chinese drywall discovered; drywall emits sulfuric gases causing corrosion; insurer denied coverage for claimed damages; Rosses sued including builder and insurers; trial court granted summary judgment for Louisiana Citizens; this appeal concerns policy coverage under exclusions.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Direct physical loss exists despite intact drywall? | Rosses claim DP losses from drywall; intactness does not preclude loss. | Drywall intact so no direct physical loss. | Yes, direct physical loss occurred. |
| Faulty, inadequate or defective materials excluded the claim? | Drywall is not faulty; pre-existing material. | Drywall gas emissions make it faulty/defective material. | Exclusion applies; damages barred. |
| Latent defect exclusion bars coverage? | Defect not latent under policy. | Drywall constitutes latent defect. | Exclusion applies; coverage barred. |
| Corrosion exclusion precludes damages? | Damages are not caused by corrosion. | Damages caused by corrosion excluded. | Exclusion applies; no coverage for corrosion damages. |
| Pollution exclusion applies to drywall gases? | Gases are not pollutants. | Sulfuric gas qualifies as pollutant. | Pollution exclusion applies; no coverage for gas-related losses. |
Key Cases Cited
- Nida v. State Farm Fire & Casualty Co., 454 So.2d 328 (La.App. 3 Cir.1984) (latent defect concept in exclusions)
- Brewster v. Hunter, 38 So.3d 912 (La.App. 5 Cir.2010) (summary-judgment standards; appellate review)