Archive for July, 2009
Chinese Drywall Help Sought from White House, Federal Agencies
A group of U.S. Senators sent out a series of letters yesterday – including one that went to the White House – asking for more action on the Chinese drywall problem. Similar letters were sent to the U.S. Small Business Administration (SBA), the Department of the Treasury and the Department of Housing and Urban Development (HUD).
The Consumer Products Safety Commission has received 681 complaints from residents of 22 states regarding Chinese drywall. The most reports – 510 – have come from Florida. Homeowners have complained that fumes from the Chinese drywall produce a “rotten eggs” odor that permeates their homes, and causes metal, including air conditioning coils and even jewelry, to corrode. Eye irritation, sinus problems and respiratory symptoms have also been reported among people living in homes containing Chinese drywall.
Recently, tests conducted by the Environmental Protection Agency revealed that Chinese-manufactured drywall contained elevated levels of strontium sulfide, as well as several organic compounds associated with the production of acrylic paint which were not present in samples of U.S.-made drywall. Recently, some concerns have arisen that some Chinese drywall could also be radioactive. According to an LA Times investigation, some Chinese drywall manufacturers used phosphogypsum – a radioactive phosphorous substance – to manufacture wallboard. At least four manufacturers told the Times that drywall made with phosphogypsum was shipped to the U.S. in 2006. Phosphogypsum contains radium which, over time, can increase lung cancer risks. Phosphogypsum has been banned in the U.S. for use in construction since 1989.
The letter to the White House was sent by Senator Bill Nelson, D-FL. According to Herald-Tribune.com, Nelson asked the Obama Administration to take a more active role in dealing with the Chinese drywall debacle. “What urgently is needed now is White House mobilization and coordination of all federal resources that can help homeowners,” Nelson wrote.
Nelson joined three other senators, Mary Landrieu D-LA, Mark Warner, D-VA., and Jim Webb, D-VA. – in writing to the other government agencies. According to Herald-Tribune.com, the Senators have asked the Small Business Administration to investigate if disaster relief loans could be made available to some Chinese drywall victims, and whether governors in states with drywall problems could declare a “physical disaster declaration”.
The letters to the Treasury and HUD sought financial relief for homeowners who have been forced to leave their homes and must pay both rent and mortgagee payments, Herald-Tribune.com said.
http://www.newsinferno.com/archives/10121
WCI plan has trust for Chinese drywall
South Florida Business Journal – Paul Brinkmann
A bankruptcy judge has approved revisions to a proposed plan for WCI Communities to emerge from bankruptcy, which includes a trust account for claims against insurers or suppliers regarding defective Chinese drywall.
U.S. Bankruptcy Judge Kevin Carey approved what is known as a Disclosure Statement for the revisions to the proposed bankruptcy plan on Friday.
“The revised bankruptcy plan was the product of negotiations and is the first step at finding a solution for homeowners impacted by defective drywall,” said Mike Ryan, an attorney in Fort Lauderdale who represents dozens of homeowners with Chinese drywall claims.
“Under the proposed plan, the trust will be empowered to bring lawsuits aimed at obtaining the maximum amount of recovery to fund remediation and the pay for the damages to the homeowners,” Ryan said.
http://www.bizjournals.com/southflorida/stories/2009/07/13/daily86.html
Investigators to get more money for tainted Chinese drywall
By ALLISON ROSS
Palm Beach Post Staff Writer
WASHINGTON — The U.S. Senate committee on appropriations has allocated a $9.6 million increase in funding for the Consumer Product Safety Commission, citing in part the agency’s need to investigate tainted drywall products.
In the 2010 Financial Services Appropriations Bill, which was approved by the senate committee last Thursday, the CPSC was given $115 million – a 9.1 percent increase over last year’s funding and $8 million more than what the agency had requested for its budget.
“Families … across the country have seen their dream homes turn into nightmares because of this defective Chinese drywall,” Sen. Mary Landrieu, D-La., said in a statement praising the increased funding.
Some drywall imported from China between 2000 and 2008 has been found to give off sulfuric odors thought to corrode metal components in homes such as air-conditioning coils, silver frames and copper wiring. Some homeowners have blamed it for respiratory trouble, nosebleeds, headaches and other health problems.
In addition, other homeowners have claimed that some American-made drywall gives off the same sulfuric odors.
The U.S. House committee on appropriations also has approved increased funding for the CPSC, which is the lead governmental agency investigating the tainted drywall issue.
According to a press release from that committee, the CPSC was allocated $113 million for the 2010 fiscal year – an $8 million increase above last year and $6 million more than the budget request.
The statement from the House committee said part of that money should be used to expand the Import Safety Initiative, which puts CPSC inspectors at key U.S. ports.
http://www.palmbeachpost.com/business/content/business/epaper/2009/07/13/drywallfunding13.html
Lennar Tots Up Chinese Drywall Damage
By JAMES R. HAGERTY
Lennar Corp. has identified about 400 homes in Florida that have confirmed problems with defective Chinese drywall and has set aside $39.8 million to repair the homes, the Miami-based home builder said in a securities filing Friday.
The figures are as of May 31, Lennar said.
Complaints about odors and corrosion blamed on defective drywall have been increasing for months. The U.S. Consumer Product Safety Commission, or CSPC, said in a letter to four U.S. Senators earlier this week that it has received more than 600 complaints relating to this drywall issue from 21 states and the District of Columbia. Most of the reports are from Florida, Louisiana and Virginia.
Lennar and some other builders have been forced to gut homes, mostly built in 2006 and 2007, to replace drywall, wiring and other fixtures.
Lennar said that it hasn’t yet found defective Chinese drywall in homes it built outside of Florida and that it isn’t yet able to “reasonably estimate its future exposure” to the problem, which has led to a spate of lawsuits against drywall suppliers and builders.
The builder said it has a $20.7 million receivable for covered damages under its insurance policies. Lennar said it is seeking reimbursement from subcontractors, insurers and others for costs the company expects to face in investigating the problems and repairing damaged homes.
Drywall, also known as wallboard, is made from gypsum coated with paper and is used in walls and ceilings.
http://online.wsj.com/article/SB124726920245725829.html?mod=googlenews_wsj
Chinese-Made Drywall Litigation & Insurance Seminar July 28 in San Francisco
SAN FRANCISCO, July 7 /PRNewswire/ — Litigation and insurance coverage claims involving alleged personal injuries and property damage from drywall imported from China is the focus of a half-day seminar set for July 28, 2009 at the Mission Bay Conference Center at the University of California San Francisco. The event will also be webcast.
The conference producer, HB Litigation Conferences LLC, has selected the first of two chairman to ensure plaintiff and defense balance. Ervin Gonzalez of Colson Hicks Eidson of Coral Gables, Fla., has emerged as a leading plaintiffs’ representative in the litigation and will serve as co-chair. The defense chairman will come from the Philadelphia-based law firm of Cozen O’Connor.
Titled “Chinese Drywall Litigation & Insurance Coverage Update,” this fully accredited program will discuss legal theories, expert witnesses, other potential sources of problems, alleged health concerns, scientific and medical opinions, likely defendants, specific property claims being raised, remediation and removal, the latest from the MDL in New Orleans, insurance disputes over trigger of coverage and exclusions, “additional insureds,” subrogation, special issues involving foreign defendants, and anticipated Daubert disputes.
To date, speakers include Arnold Levin of Levin, Fishbein, Sedran & Berman; John Mullen of Nelson Levine de Luca & Horst; Barbara Manis, M.D., Building Health Sciences, a division of the NMAS Group; Eric Winegar, Ph.D., Applied Measurement Science; Matthew Jacobs, Jenner & Block. HB will announce other speakers shortly.
The price to attend in-person or via webcast is $595. In-house counsel at insurance companies receive a 30% discount. A limited number of press passes are available.
http://www.earthtimes.org/articles/show/chinese-made-drywall-litigation–insurance-seminar-july-28-in-san-francisco,884477.shtml