Posts Tagged ‘Congress’
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
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 concerns head to Capitol Hill
The first congressional hearings on Chinese drywall will be held on Capitol Hill next week.
The Senate Subcommittee on Consumer Protection, Product Safety and Insurance plans to meet at 10:30 a.m. on May 21.
The committee will investigate health and product safety issues associated with the drywall.
High-sulfur Chinese drywall has been blamed for fumes that cause an odor of rotten eggs, metal corrosion and alleged health problems in thousands of homes, mostly in the Southeast, and especially in Florida.
The growing product liability crisis has spawned federal and state lawsuits, including individual actions and class actions. The Florida Department of Health is tracking 365 reported complaints and investigating. The 
U.S. Consumer Product Safety Commission is also investigating.
Buchanan works to assist homeowners with Chinese drywall
Buchanan supported an amendment to the Mortgage Reform and Predatory Lending Act (H.R. 1728) to require the US Department of Housing and Urban Development (HUD) to study the effects of Chinese drywall on foreclosures and the availability of property insurance for residential structures with Chinese drywall.
“Defective Chinese drywall is taking its toll on thousands of homeowners,” said Buchanan on the floor of the House. “Many, including my constituent John Medico of Bradenton are now finding their homes uninhabitable.”
Medico says smell and contamination forced him to move from his new Greyhawk Landing home, forcing him to pay both a mortgage and rent.
Buchanan noted that many insurance companies are not covering the cost of replacement and relocation and encouraged banks and homebuilders to work with victims of Chinese drywall.
“Without any available assistance many homeowners are forced to decide whether to live in an impacted home or walk away and accept foreclosure in order to protect the safety of their family,” said Buchanan.
Earlier this year, Buchanan wrote the U.S. Trade Representative and Federal Trade Commission asking them to take all appropriate steps to confront this problem.
Under the bill, HUD would have 120 days to submit a report that provides Congress with a better understanding of how severely this crisis is impacting the housing market and allow Congress to take necessary action to protect and assist impacted homeowners.