A lawsuit has been filed in Louisiana against 14 insurers thatseeks indemnification for losses and breach of contract arisingfrom claims for the development and sale of homes allegedlycontaining defective Chinese manufactured drywall.

According to a release from the law firm Anderson Kill &Olick, P.C., the suit was filed by the WCI Chinese Drywall Trust,which was formed in July 2009 after the bankruptcy of homebuilderWCI Communities and its subsidiaries. The Trust assumed liabilityfor claims alleging harm from Chinese drywall installed in homesbuilt by WCI. It is the first insurance coverage action regardingChinese drywall to be filed in the Chinese wall boardmulti-district litigation in the Eastern District of Louisiana.

WCI, its subsidiaries, and subcontractors claims to havepurchased insurance policies with aggregate limits of more than$200 million during the policy periods triggered by Chinese drywallclaims, which began in 2006. Lawyers for WCI said that insurancecompanies and subcontractor insurance companies have either deniedcoverage, reserved their rights, failed to reply to WCI's noticeletters, or otherwise failed to acknowledge coverage. More than 700homeowners may seek recovery through the Trust

WCI is seeking a declaratory judgment finding coverage for theclaims, as well as damages for breach of contract.

"A prompt and thorough insurance recovery is vital to enablinghomeowners suffering from the effects of defective wallboard toremediate their homes and recover their losses," said Robert M.Horkovich, lead counsel to the Trustee for the WCI Chinese DrywallTrust. Horkovich is from the law firm of Anderson Kill & Olick,P.C.

The 14 insurance companies named in the lawsuit include:

• American International Specialty Lines Insurance Company
• American Guarantee and Liability Insurance Company
• Amerisure Insurance Company/Amerisure Mutual InsuranceCompany
• Auto-Owners Insurance Company
• FCCI Insurance Company/FCCI Commercial Insurance Company
• Hermitage Insurance Company
• Illinois Union Insurance Company
• Landmark American Insurance Company
• Lexington Insurance Company
• Mid-Continent Casualty Company
• National Union Fire Insurance Company of Pittsburgh, Pa.
• Old Republic Insurance Company
• Scottsdale Insurance Company
• Steadfast Insurance Company