Holding that all First-Party Coverage was excluded, the Federal District Court further held in pertinent part that there could be no cognizable Claim for Louisiana Bad Faith, Statutory Penalties for "arbitrary and capricious" or "vexatious refusal to pay" in In re Chinese Manufactured Drywall Products Liability Litigation, Download In re Chinese Manufactured Drywall Products Liability Llitigation (E.D. La. No. MDL 2047, Order and Reasons Filed December 16, 2010) PUBLIC ACCESS, also published as 2010 WL 5288032 *27 (E.D. La. December 16, 2010)(Multi-District Litigation; Louisiana substantive law).
The Federal District Court held in this case that there would have been Insurance Coverage under the Insuring Agreements of the Homeowner's Insurance Policies at bar, but that all such Coverage is excluded for the Chinese Drywall Damages alleged in that case. The Exclusions applied by the Court to the allegations in that case are the "faulty materials" Exclusions and the "corrosion" Exclusions contained in the Policies at bar. In re Chinese Manufactured Drywall Products Liability Litigation, 2010 WL 5288032 at *19-*20.
Exclusions applied by Courts to Catastrophe Claims are analyzed by Dennis J. Wall in Chapter 7 of "CATClaims: Insurance Coverage for Natural and Man-Made Disasters" (Thomson Reuters West 2010 Supplement).
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