A district-court judge in Pennsylvania has ruled that a series of Chinese drywall claims against Devon International amounts to a single occurrence according to state law, and therefore triggers only one insurance policy Devon had with Cincinnati Insurance Co.
The case stems from a series of lawsuits filed against Devon alleging damages sustained by a variety of plaintiffs between November 2008 and November 2010. The time period spans two separate commercial general liability policy periods for Devon: one from Nov. 20, 2008 to Nov. 20, 2009, and the second from Nov. 20, 2009 to Nov. 20, 2010. Cincinnati Insurance issued both policies.
The lawsuits against Devon relate to drywall imported from China that the firm, acting as a sourcing agent for Chinese products, distributed to North Pacific Group in 2006. By April 2009, counsel for North Pacific sent a letter to Devon requesting a defense and indemnification for a claim arising from alleged defects in the imported drywall. Subsequently, Devon became faced with a “multitude of lawsuits” in various jurisdictions.
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