In drywall case, insurance company wins

NORFOLK, Va. (WAVY) - A judge has ruled against a local builder in a case involving its insurance company and claims over Chinese drywall.

A U.S. District Court judge in Norfolk ruled Wednesday that Builders Mutual Insurance Company does not owe monies to the Dragas Company to cover the cost of repairing homes built with the suspect material.

According to court documents, a subcontractor installed Chinese drywall in over 70 homes built by Dragas in Hampton Roads.

As Dragas made repairs to those homes in 2009, it filed claims with Builders Mutual Insurance Company to help cover the expenses associated with replacing the Chinese drywall.

Judge Rebecca Beach Smith ruled that, because Dragas voluntarily made the repairs, the company could not claim 'damages' incurred under its insurance policy with Builders Mutual.

The judge gave Dragas two weeks to submit new facts that could change her mind.

Click here to view the judge's ruling.