The decision, written by District Court Judge Gene E.K. Pratter, notes that, in keeping with previous cases and Pennsylvania law, “if all the injuries suffered by the underlying plaintiffs in this case stem from a single cause over which Devon had some control, then there would be a single occurrence under the parties' insurance policy.”

To that end, Pratter finds, “Here, all the injuries to the underlying plaintiffs and claims against Devon originate from a common source: Devon's single purchase and shipment of defective drywall from Shandong.

“Moreover, Devon 'had some control' over the cause of the injuries, in that it chose to purchase and distribute the defective drywall.”

The court also addressed the time of the “single occurrence,” noting that Devon would not have coverage under the second policy period if the occurrence took place before Nov. 20, 2009.

As some of the underlying plaintiffs were allegedly damaged during the first policy period, Pratter determines, “The effects of the imported drywall thus manifested themselves during that first policy period, and the single occurrence took place before the second policy period began on Nov. 20, 2009.”

As a result, the court granted summary judgment to Cincinnati Insurance, determining the underlying lawsuits to be a single occurrence that took place before the second policy period.

Robert B. Mulhern, Jr., general counsel for the Devon defendants, says Devon has no comment about the decision and notes that Devon is considering whether to file an appeal to the Third Circuit.