Chinese Drywall

Chinese Drywall

Chinese Drywall: What About It?Lawsuits related to Chinese drywall, including numerous class actions, have been filed in Florida, Louisiana, Alabama and Ohio (involving a Florida house). More lawsuits are being filed every day, with lawyers in South Florida hosting meetings with homeowners and homeowner associations to discuss options - and ultimately, litigation.
Several homeowners have filed class actions. These class action plaintiffs will attempt to represent themselves and "others similarly situated who own homes in the United States that contain defective drywall that was designed, tested, manufactured, marketed, wholesales, supplied and/or sold" by the defendant manufacturers and suppliers.
Many homeowners are bringing lawsuits solely on their own behalf. Governor Crist requested that the federal agencies help Florida develop chemical testing strategies for homes that are experiencing severe copper corrosion. The request came a day after Rep. senators, Sen. Bill Nelson, D-Fla., and Sen. Mary Landrieu, D-La., have introduced legislation to recall the Chinese drywall believed to be emitting "rotten egg" odors and causing unusual air conditioner problems in homes in Florida, Louisiana, Mississippi, Texas and Virginia.
It is estimated that 30,000 Florida homes and as many as 100,000 homes nationwide could contain the sulfur-emitting Chinese drywall that gives off an odor of rotten eggs, and may corrode residential wiring and appliances.
When Hurricane Katrina and Hurricane Wilma laid waste to large swaths of the Louisiana and Florida gulf coasts in 2005, combined with the surge of construction during the real estate boom, suppliers of American-made drywall were hard pressed to keep up with demand. through ports in Alabama, California, Florida, Georgia, Louisiana, Mississippi, Missouri, New York, North Carolina, Pennsylvania, Texas, Virginia, Washington, and Hawaii. It is estimated that somewhere between 300 and 550 million pounds of Chinese drywall entered the United States during a sixteen month period between 2006 to 2007. Much of the Chinese drywall came into the ports of Miami and Tampa. Florida was not alone, however, as it is estimated that at least 60 million pounds of Chinese drywall came directly into Katrina ravaged Louisiana and Mississippi.
While the 300 to 500 million pounds of Chinese drywall is a small fraction of the 15 million tons of drywall produced domestically every year, it is estimated that the Chinese drywall has been incorporated into homes in at least a dozen states.
Many homeowners have complained that the drywall in their homes is emitting smelly, corrosive gases. It is believed that the problem drywall is the release of volatile sulfur based compounds, which has reportedly caused corrosion to copper and other metals. The odor has been described as rotten eggs.
A few years ago, producers began to receive complaints about drywall made from gypsum out of a particular location in Tianjin, China.
Homeowners have complained about premature failure of the HVAC system, apparently due to the corrosion of the copper coils. Corrosion has also been noted on electrical wiring, causing the failure of household appliances, televisions, stereo equipment, remote controls, washers, and microwaves. However, the paramount concern of the governmental agencies investigating the issue is the potential adverse health consequences of exposure to the sulfur gases.
There is presence of sulfur-like or other unusual odors Confirmed presence of Chinese manufactured drywall in the home Observed copper corrosion, indicated by black, sooty coating of un-insulated copper pipe leading to the air handling unit present in the garage or mechanical closet of home Documented failure of air conditioner evaporator coil (located inside the air handling unit) Confirmation by an outside expert or professional for the presence of premature copper corrosion on un-insulated copper wires and/or air conditioner evaporator coils (inside the air handling unit)
Lawsuits related to Chinese drywall, including numerous class actions, have been filed in Florida, Louisiana, Alabama and Ohio (involving a Florida house). More lawsuits are being filed every day, with lawyers in South Florida hosting meetings with homeowners and homeowner associations to discuss options - and ultimately, litigation.
Several homeowners have filed class actions. These class action plaintiffs will attempt to represent themselves and "others similarly situated who own homes in the United States that contain defective drywall that was designed, tested, manufactured, marketed, wholesales, supplied and/or sold" by the defendant manufacturers and suppliers.
Many homeowners are bringing lawsuits solely on their own behalf. These lawsuits have been filed against developers, general contractors, drywall installers, supply houses, distributors, and even the Chinese manufacturers.
Lennar, one of several large homebuilders impacted by the Chinese drywall problem, has initiated its own lawsuits, naming the Chinese manufacturers, distributors, supply houses, and drywall contractors.
The lawsuits include claims for breach of contract, negligence, breach of warranty, unjust enrichment, and private nuisance. Some suits request equitable relief seeking medical monitoring of the effects of exposure to the defective drywall on homeowners. All of the lawsuits have been filed recently, and more are filed every week.
Although several entities have been aware of the problem since 2006, the Chinese drywall problem is now mushrooming into a major issue, as can be seen by recent comments from politicians in the affected areas. No easy solution has been identified. The only option on the table is to remove all of the problem drywall, repair everything it has damaged, reinstall new drywall, and refinish the home. This solution is time consuming and extremely expensive. Experts are analyzing alternate means to render the problem drywall harmless without requiring a complete teardown and removal. It does not appear that there is any consensus, other than total renovation, at present. Lennar apparently intends to replace all the drywall and seek to recover from others. The general contractors and subcontractor are looking at huge potential claims, as are all of the suppliers in the chain.
Everyone is reviewing their contracts, invoices, and job records. It is difficult to assess how much drywall any of the entities actually installed or what projects, or even units, have Chinese drywall in them.
It appears many home builders and general contractors are performing audits of the potentially effected units. Once it is determined which and how many units are affected, difficult decisions will have to be made about how to resolve the problem.
The resolution of the problem will develop over the next months, and clarification of the legal consequences to the involved parties may take years.