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Chinese Drywall

Archive for August, 2009

Saturday, August 29, 2009
By Cindy Skrzycki, GlobalPost

Thousands of Americans say Chinese Drywall is ruining their homes

On the outside, they are new and sunny looking. On the inside, they are strange-smelling and rotting. These are the thousands of new houses built in the United States within the past few years that owners allege may contain yet another problem export from China: bad drywall.

Since 2006, new home owners in 23 states have been suffering from what they say are odorous batches of corrosive drywall that were imported from at least one gypsum mine in China and used by U.S home builders.

Owners say their houses smell like rotten eggs and are causing breathing problems and skin irritations. They worry their homes have become worthless, as air conditioners and other mechanical parts corrode and become nonfunctioning. The problem is thought to be high levels of sulfur-compound gases being released from the drywall.

Homes that are affected were built in the aftermath of hurricanes in 2005 when building booms in Florida and Louisiana contributed to domestic drywall shortages, causing suppliers to look to China.

Unlike other tainted imports from China — such as formula, toothpaste and pet food, which can be swiftly taken off retail shelves — gypsum drywall cannot be easily removed since it is behind walls and ceilings, affecting the performance of plumbing, wiring, and electrical systems.

Attorneys representing homeowners estimate more than 2,000 lawsuits already have been filed in state and federal courts, targeting Chinese, U.S. and German companies, as well as builders, installers, suppliers, distributors and import brokers.

“We expect about 20 manufacturers of Chinese drywall to be involved in these cases,” said Jeremy Alters, an attorney in Miami handling many of the cases. “There is no quality control in this drywall. It’s hard to believe no one knew it was bad. It is destroying homes and it will cost billions.”

One of the most prominent Chinese manufacturers named is Knauf Plasterboard Tianjin Co. Ltd. Others are Knauf Plasterboard Wuhu Co. Ltd and Knauf Plasterboard Dongguan Co. Ltd., as well as a German affiliate, Knauf Gips KG. There are numerous other Chinese companies being added to legal complaints as time goes on, such as Beijing New Building Material PLC.

So serious are the potential cost and health implications that several U.S. federal agencies, members of Congress, states and health and legal authorities are assessing the scope of the problem.

The U.S. Consumer Product Safety Commission in Washington is leading the investigation. It received permission from the Chinese government to send a team of scientists and compliance officials to China on Aug. 16 to investigate what is thought to be the source of the problem — the Luneng mine in Shandong province, and other mines in the area.

“To visit the mines that this came out of will be a valuable part of our investigation,” said Scott Wolfson, CPSC spokesman.

The agency estimates 6.2 million sheets of the drywall were imported into the United States. At least three dozen builders are involved, not counting those who went out of business during the current economic crisis.

Some 810 complaints have been filed with the CPSC.

“I have personally visited a number of these homes and have seen firsthand how serious this situation is for families living with this toxic drywall,” said Rep. Robert Wexler, D-Fla.

Mr. Wexler, a leader in the newly formed, 14-member Congressional Contaminated Drywall Caucus, said homeowners have reported bronchitis, pneumonia and other respiratory illnesses, while “pregnant women have been instructed … to move out of their homes to avoid health risks to their unborn children.”

Read more: http://www.post-gazette.com/pg/09241/993994-28.stm#ixzz0PlDUc3Ri

WCI to emerge from bankruptcy

Thursday, August 27, 2009 posted by Larry

A Delaware Bankruptcy Court has approved WCI Communities’ reorganization plan.

The approval comes a little more than a year after the Bonita Springs-based luxury homebuilder filed for Chapter 11.

Under the plan, which was filed in June and supported by WCI’s senior secured lenders and official creditors committee, WCI will eliminate more than $2 billion of debt and liabilities from its balance sheet, the company said in a news release.

WCI said it expects to emerge from bankruptcy on Aug. 31.

The plan calls for the company’s senior secured lenders to receive $450 million of new debt and an initial 95 percent equity stake in WCI. Unsecured creditors will receive interests in a litigation trust and an initial 5 percent equity stake that could increase to as much as 35 percent depending on future operations. All existing shares in the company are being cancelled and will receive no recovery.

David L. Fry, who has been with WCI since 1995, will continue to serve as president and CEO of the reorganized company.

“WCI, along with its major constituent groups, have worked together to fashion a plan that allows us to emerge as a deleveraged lifestyle community developer and land holding company and ensures that recoveries are allocated fairly among the company’s stakeholders,” Fry said in a statement.

Last month, a bankruptcy judge approved revisions to the original plan to include a trust account for claims against insurers or suppliers regarding defective Chinese drywall.

In January, WCI said in an SEC filing that it was setting aside $11 million for homes that needed air conditioning coil replacement, “which may or may not be related to the Chinese drywall.”


http://www.bizjournals.com/southflorida/stories/2009/08/24/daily54.html

Chinese Drywall News Alerts

Tuesday, August 25, 2009 posted by Larry

Help Chinese Drywall Launches new Forum.
HelpchineseDrywall.com added a new forum to the website to allow homeowners affected by Chinese Drywall to communicate to one another, to share experiences such as dealing with banks, mortgages, taxes, remediation and much more.  Be sure to check out the new section

Chinese Drywall Class Action Lawsuit Filed in Nevada
AboutLawsuits.com
Homeowners in Nevada have filed a Chinese drywall class action lawsuit against local builders, saying that defective drywall in their homes have caused a …

California’s housing depression could spread
The San Francisco Examiner
And now the “new asbestos” —Chinese drywall — is fueling a gold rush among plaintiffs’ lawyers in search of a new and lucrative practice area. …

Register

Sunday, August 23, 2009 posted by Larry

If you have Chinese Drywall I want to hear from you, please register here.

Responding to recent news accounts about the possibility of imported drywall containing
radioactive phosphogypsum, federal and state agency radiation laboratories analyzed
multiple samples of drywall obtained by the U.S. Consumer Product Safety Commission
(CPSC) and the Florida Department of Health (FLDOH).

Twenty-one samples were analyzed from homes and manufacturers of drywall. Seventeen were obtained by CPSC
from manufacturers and suppliers in multiple states, and four were obtained by FLDOH
from homes exhibiting copper corrosion, odors and occupant complaints. Results of the
phosphogypsum testing showed levels that do not pose a radiation safety risk to families.
FLDOH’s Radiation Laboratory and the U.S. Environmental Protection Agency (EPA)
National Air and Radiation Environmental Laboratory (NAREL) analyzed the samples
for evidence of phosphogypsum contamination. Evaluation of the analysis by a federal
and state technical team of scientists from CPSC, EPA, FLDOH, Centers for Disease
Control and Prevention (CDC)/Agency for Toxic Substances and Disease Registry
(ATSDR), Louisiana Department of Health and Hospitals, and Virginia Department of
Health has concluded that the samples had no elevated levels of radioactivity. The levels
were comparable to “background” levels found in soil, brick and concrete.

Chinese Drywall News Alerts

Friday, August 21, 2009 posted by Larry

Air sampling not the best method for testing defective Chinese drywall

EMSL Analytical offers testing solutions for imported drywall.
With numerous media reports of imported Chinese drywall causing unpleasant odors and damage to building materials EMSL Analytical has been busy testing samples from across the country.

The problem appears to be related to the presence of iron disulfide (FeS2 pyrite). Hydrogen sulfide (H2S), carbonyl sulfide, sulfur dioxide (SO2), and carbon disulfide (CS2) are also suspected as culprits. EMSL Analytical has recently developed a procedure that can accurately compare certain sulfur gasses contained in suspect drywall versus control samples.

Air sampling methods (such as EPA TO-15 and ASTM D5504) do not consistently identify spaces with other odorous drywall symptoms, such as odors, irritation, and copper corrosion. There are so many factors, including temperature, moisture, HVAC operation, etc., that affect what is present in the air that other sampling methods should be utilized. Bulk testing has proven to be the most reliable testing methods. EMSL can show that the material differs in composition from normal, non-problem drywall by XRF/XRD microscopy. This test alone may not tell the whole story.

Another important test is a copper corrosion test that EMSL has developed. For those important projects, the consultant should consider performing all of the tests listed above.

http://www.environmental-expert.com/resultEachPressRelease.aspx?cid=21001&codi=60585&lr=1

The Florida Department of Health recently launched a website to help owners indifty contamintated drywall both internally and domestic
http://www.doh.state.fl.us/environment/community/indoor-air/casedefinition.html

Chinese drywall found in Tampa homes

TAMPA – Toxic Chinese drywall has been discovered in several new homes in the Hampton Lakes subdivision in Tampa.

Builder Beazer Homes says 18 homes in the neighborhood appear to have the dangerous drywall.

Resident Robert Morris bought his three-story town home in the subdivision two years ago. At the time, it felt like the perfect buy. But he says it doesn’t feel that way anymore.

The coils on his air conditioner are black with corrosion. Morris says he knew little about toxic Chinese drywall until the letters started coming from Beazer Homes last month. The mounting air conditioner repair bills suddenly made sense.

http://www.myfoxtampabay.com/dpp/news/local/hillsborough/tampa_homes_chinese_drywall_082009

Nelson seeks China cooperation on drywall

Tuesday, August 18, 2009 posted by Larry

U.S. Sen. Bill Nelson said in a media release Tuesday he pressed Chinese officials in recent trips there to cooperate more fully in investigations of defective high-sulfur drywall that was made in China and is ruining homes in the United States.

Nelson’s remarks came immediately before a separate journey to China this week by a delegation of the U.S. Consumer Product Safety Commission, which is investigating hundreds of complaints from homeowners in Florida and elsewhere about the ill effects of drywall made in China.

According to Nelson’s statement, the trips send a message that the United States is serious about China taking responsibility for some the problems caused by its drywall. Nelson said in the release he intends to insist that drywall be on the agenda for planned meetings this fall between President Obama and Chinese President Hu Jintao.

http://www.bizjournals.com/tampabay/stories/2009/08/17/daily34.html

Chinese Drywall News Alerts

Thursday, August 13, 2009 posted by Larry

FAU plans to offer training classes for removal of tainted Chinese …
Palm Beach Post
The issue of removal has garnered attention because some Chinese drywall gives off a sulfuric odor linked to corrosion of metal components in homes. …
See all stories on this topic

Chinese Drywall Homes Could be Eligible for Property Tax Reductions
Newsinferno.com
Chinese drywall homeowners in Hillsborough County, Florida could see their property taxes reduced this year. According to a report on the ABC Action News …
See all stories on this topic

New legislation could help homeowners sue Chinese drywall …
InjuryBoard.com
The Miami Herald (8/12, Clark) reports, “New legislation could make it easier for homeowners with defective Chinese drywall to take the manufacturer to …
See all stories on this topic

Pacific team develops test for toxic drywall
Stockton Record
By Jennie Rodriguez STOCKTON – In less than a minute, Matthew Curtis confirmed that a pea-size sample of Chinese drywall contained toxic sulfur, …
See all stories on this topic

Rumberger Kirk & Caldwell Partner Featured Speaker for Chinese …
PRLog.Org (press release)
Fitzsimmons is one of three speakers who will discuss recent developments in Chinese drywall litigation. The course will address the legal theories being …
See all stories on this topic

Couple taking defective drywall out of their home, and it’s working
Winknews.com
A North Port couple is putting their home, infested with Chinese drywall, back together. WINK News first told you about the homeowners ripping the drywall …
See all stories on this topic

Federal regulators are expected to release the findings of Chinese drywall investigations in September. According to a report in The Wall Street Journal, if the investigations conclude that a “substantial” electrical, fire or health hazard exists, homeowners living with Chinese drywall will face some tough choices.

For months now, we have reported on homeowner complaints regarding Chinese drywall. Earlier this year, tests conducted by the Environmental Protection Agency (EPA) 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.
According to the Consumer Products Safety Commission (CPSC), most of the 810 Chinese drywall complaints it has received since last December have come from Florida (621). The state with the second highest count is Louisiana (105). Others have come from consumers in Alabama, Arizona, California, Georgia, Indiana, Kentucky, Michigan, Mississippi, Missouri, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington, Wisconsin, Wyoming, and the District of Columbia.

http://www.newsinferno.com/archives/10243

U.S. District Judge Eldon E. Fallon has appointed 14 different Chinese drywall lawyers to serve in leadership roles in the consolidated litigation over defective drywall imported from China, which has been centralized in the Eastern District of Louisiana.
On June 15, the U.S. Judicial Panel on Multidistrict Litigation consolidated all cases filed throughout the country involving issues with Chinese drywall into an MDL, or Multidistrict Litigation. The cases have been transferred to Judge Fallon for coordinated pretrial litigation and discovery, and Judge Fallon has indicated that he intends to fast track the litigation, with the first trials for Chinese drywall lawsuits potentially beginning within six months.

According to an order issued last week, Arnold Levin was appointed to serve as Lead Counsel for the plaintiffs, Russ Herman was appointed as Plaintiffs’ Liaison Counsel and twelve other lawyers were appointed to serve on a Plaintiffs’ Steering Committee.

Thousands of homeowners have experienced problems with defective Chinese drywall that was used to build homes between 2004 and 2007. The drywall was imported from China as a result of a shortage of domestic drywall caused by a housing boom and rebuilding from several hurricanes.

The defective drywall contains sulfur compounds that can emit a “rotten egg” smell, corrode electrical appliances and wiring, and potentially cause health problems for residents. The U.S. Consumer Product Safety Commission (CPSC) reports that complaints have been received from homeowners in 21 states, with most of the complaints coming from Florida, Louisiana and Virginia.

Although individual plaintiffs will continue to be represented by the Chinese drywall lawyers they retained to handle their cases, the attorneys assigned to leadership roles will perform duties during discovery, hearings and meetings that are for the common benefit of all plaintiffs whose cases have been consolidated before Judge Fallon.

The aggressive schedule laid out by Judge Fallon for moving the cases toward trial calls for each side to select 10 cases to begin early discovery, which will later be narrowed down to five cases for trial. The first cases will deal with property damage claims only, because they can be resolved quicker than the Chinese drywall injury lawsuits.

While the litigation is ongoing, lawmakers have been trying to find relief for homeowners affected by the Chinese drywall problems. Last Tuesday, Senator Bill Nelson (D-Fla.) sent a letter to President Brack Obama asking for the White House to mobilize federal resources and asking that the president create a federal Drywall Assistance Center where homeowners can find information on federal resources and the status of drywall investigations.

Nelson also specifically asked Obama to look into homeowner assistance grants and other grants from the Department of Housing and Urban Development, and suggested that the Federal Emergency Management Agency (FEMA) could assist with relocation of homeowners affected by defective Chinese drywall.

http://www.aboutlawsuits.com/chinese-drywall-lawyers-appointed-to-leadership-in-mdl-5201/

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