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Chinese Drywall

Archive for June, 2009

The trial date for a Chinese drywall suit in Florida is scheduled for later next year, making it potentially the first in a series of cases that will be submitted to a jury involving damages caused by the toxic drywall.
The Miami Herald reports that the lawsuit over Chinese drywall brought by Melissa and Jason Harrell against South Kendall Construction, Palm Holdings, Keys Gate Realty and Banner Supply Co. will go to trial in Miami-Dade Circuit Court in September 2010.

The Harrells’ complaint alleges that defective drywall from China contained high amounts of sulfur, which caused breathing problems and headaches, corroded the coils of their air conditioner and filled their home with a chemical smell. The suit indicates that conditions caused by the defective drywall forced them to move out of their new home, which was built only three years ago.

Thousands of homes across the United States have experienced similar problems from Chinese drywall imported into the country between 2004 and 2007. The drywall was made with fly ash residue from the chimneys of coal-fired power plants, and has been found to contain high amounts of sulfur compounds. Some estimates suggest that the drywall may have been used to build as many as 300,000 homes throughout the country.

The high levels of sulfur in the drywall have been found to cause “rotten egg” smells and the gases emitted by the drywall corrode copper wiring and appliances, such as air conditioner units. There have also been concerns that the drywall is causing health problems such as headaches, breathing difficulties, insomnia and nosebleeds.

Earlier this month, the U.S. Judicial Panel on Multidistrict Litigation (MDL) ordered that all Chinese drywall lawsuits filed in federal courts throughout the country will be consolidated and centralized in the Eastern District of Louisiana for pretrial litigation. The cases will be handled in a coordinated manner to avoid duplicative discovery and inconsistent pretrial rulings. However, no case management order has been issued for the federal lawsuits and it is not anticipated that the first trial date will be scheduled before the end of next year.

While the Chinese drywall suits are proceeding through the court system, lawmakers are seeking several avenues for home owner relief. House and Senate Democrats are currently investigating whether Chinese drywall problems will qualify home owners for special tax deductions under casualty loss tax code laws, and Senators Bill Nelson and Mary Landrieu have called for a Chinese drywall recall.

http://www.aboutlawsuits.com/chinese-drywall-suit-scheduled-for-trial-4623/

Three U.S. senators, including Florida Democrat Bill Nelson, and a U.S. congressman have written to the Internal Revenue Service asking that costs incurred by homeowners who have fallen victim to Chinese drywall should be deductible for federal tax purposes.

The letter, sent Tuesday, asks the IRS to clarify whether section 165(h) of the tax code — which allows taxpayers to deduct “casualty losses” suffered as a result of an unexpected event such as a fire, storm or theft — could apply Chinese drywall victims.

http://www.heraldtribune.com/

NEW ORLEANS, June 17 /PRNewswire/ — The U.S. District Court in New Orleans has been chosen as the site of multidistrict litigation for lawsuits arising from allegedly defective Chinese-made drywall. This decision comes in the same month as a comprehensive legal conference on the subject, set for tomorrow, Thursday, June 18, at the Ritz-Carlton Hotel.

For more information about the “Chinese Drywall Litigation Conference” on Thursday, June 18, contact the conference producer, HB Litigation Conferences, formerly Mealey’s Conferences, by phone at (484) 324-2755, by email at info@LitigationConferences.com, or by visiting the conferences section at HB’s website at www.LitigationConferences.com.

Contact
Sharon Boothe
Sharon.Boothe@LitigationConferences.com
(484) 324-2755 x208
www.litigationconferences.com

Chinese drywall class actions head to Big Easy

Tuesday, June 16, 2009 posted by Larry

Class action lawsuits filed around the country against Chinese drywall manufacturers will be consolidated and tried in New Orleans, The Times-Picayune reported Monday morning.

The Judicial Panel on Multidistrict Litigation, which consolidates similar cases filed in different federal courts before a single judge, has assigned the case to U.S. District Judge Eldon Fallon, the paper reported.

Attorneys in South Florida argued that Miami would be a better location, because a majority of Chinese drywall problems and lawsuits have occurred there. The problems first cropped up in southwest Florida’s Gulf Coast cities. The drywall was imported following hurricanes Katrina and Wilma in 2005, after the housing boom and rebuilding efforts created a material shortage among domestic suppliers.

http://www.bizjournals.com/tampabay/stories/2009/06/15/daily14.html

Chinese drywall bill diverted to committee

Wednesday, June 10, 2009 posted by Larry

Associated Press

 BATON ROUGE, La. — The Senate diverted legislation dealing with Chinese-made building materials, which has been implicated in health problems, to a second committee hearing.

Several federal and state agencies, including the Centers for Disease Control and Prevention, are investigating complaints that Chinese drywall is causing health problems. There also are reports that fumes from the drywall corrode metal and cause a rotten-egg stench in homes.

Sen. Julie Quinn’s bill originally would have allowed homeowners who used the drywall in their houses to sue the makers, distributors and sellers of the material for damages and attorney fees.

With the measure up for a Senate floor vote on Tuesday, Quinn had it rewritten to delete the litigation provisions. She instead proposed that homeowners with the drywall be reimbursed by the state, with tax credits for the cost of the drywall.

Senate President Joel Chaisson, D-Destrehan, ordered the amended bill to the Revenue and Fiscal Affairs Committee, which considers all tax bills. The measure previously won approval from a Senate judiciary committee chaired by Quinn, R-Metairie.

Policies may not cover the drywall

Monday, June 8, 2009 posted by kathy

By Aaron Kessler

ORLANDO – It may not be the sexiest of topics, but the intricacies of insurance policies may prove to be paramount in deciding who winds up footing the bill for the tainted drywall eating away at homes in Florida and other states.

The topic took center stage Friday at a Chinese drywall litigation conference in Orlando. The aspect receiving perhaps the most attention was pollution.

An increasing number of affected residents are turning to their homeowners insurance policies for help after discovering they are victims of tainted drywall.

http://www.heraldtribune.com/article/20090606/ARTICLE/906061028/2055/NEWS?Title=Policies-may-not-cover-the-drywall

By Aaron Kessler

ORLANDO – The Florida Department of Health is nearly complete with another round of drywall testing aimed at zeroing in further on what contaminants in Chinese wallboard may be responsible for emitting volatile sulfur gases.

Lori Streit, with Illinois-based Unified Engineering, conducted the first lab tests for the state published in March. Those tests found hydrogen sulfide, carbon disulfide and carbonyl sulfide coming from several Chinese drywall samples taken from Florida homes.

http://www.heraldtribune.com/article/20090604/BREAKING/906049944/1006/SPORTS0301

CPSC Launches a new website to help homeowners keep track of the agency’s investigation into toxic drywall manufactured in China. The CPSC has only received 365 reports from residents in 18 states. If you have not filed a complaint please click here to do so.

A Chinese drywall bill currently under consideration in the Louisiana legislature would require the businesses found responsible for the drywall debacle to foot the entire bill for damages sustained by Louisiana homeowners. According to a report on wwltv.com, the Louisiana state legislature is expected to take up the Chinese drywall bill sometime this morning.

Homeowners in at least 18 states have complained that fumes from Chinese-made drywall produce a “rotten eggs” odor and cause metals, such as air conditioning coils, to corrode. The fumes have also been associated with respiratory and sinus problems in some residents. According to a recent Wall Street Journal article, the U.S. imported roughly 309 million square feet of drywall from China during the housing boom from 2004 to 2007. In Louisiana, many homeowners who had to be rebuild following Hurricane Katrina have discovered that the tainted drywall was used in their homes.

Earlier this month, the Environmental Protection Agency (EPA) released results of tests it conducted that compared Chinese drywall to American-made material. The tests found sulfur and two organic compounds associated with acrylic paint in the Chinese drywall that were not present in the American wallboard. The agency said more testing is needed to determine if any of the compounds found in the Chinese drywall are responsible for problems reported by homeowners

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