Archive for the ‘Latest News’ Category
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
Chinese Drywall Suit Scheduled for Trial September 2010
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/
Chinese drywall bill diverted to committee
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.