Florida Jury Awards $2.4 Million in Chinese Drywall Case
June 22, 2010 – A Miami-area construction supplies company will have to pay a precedent-setting $2.4 million settlement for damages related to faulty Chinese drywall installed in a local home, a local jury decided Friday.
The plaintiffs sought $4.3 million for damages and losing the enjoyment of their home and claimed the drywall supplier knew about the problems but did not notify customers or legal authorities. The jury based its decision in part on evidence showing officials for the drywall company, Banner Supply, had forwarded customer complaints about drywall to the company’s supplier in China. The Chinese supplier then replaced the remaining supply of Chinese drywall with drywall manufactured in the United States, and Banner Supply officials allegedly agreed not to notify customers or state or federal authorities.
Attorneys representing the drywall supplier argued the firm should not be liable for damages exceeding the actual cost to correct the problem, and the case establishes a precedent in Florida and guidelines for similar cases in other states.
Some Chinese drywall imported primarily between 2004 and 2006 has been found to be defective and contain potentially corrosive elements. But Florida isn’t the only state dealing with the problem. The Louisiana Legislature recently approved a measure protecting homeowners against insurance cancellations due to having Chinese drywall in their homes. If signed into law, the measure would ban homeowners insurance companies from canceling or refusing to renew insurance policies, but insurers may increase insurance premiums or deductible amounts. The proposed law specifically refers to drywall manufactured or imported from China before this year and would impose a maximum $15,000 fine on insurance companies for violations.
Affected by contaminated drywall more than any other state, Louisiana has had thousands of homes equipped with defective drywall manufactured in China, much of which was installed during massive rebuilding efforts after Hurricane Katrina devastated New Orleans and others Gulf Coast cities in 2005.
Officials for the U.S. Department of Housing and Urban Development and the U.S. Consumer Product Safety Commission recently issued an official report recommending homeowners remove all traces of Chinese drywall and replace all electrical wiring and components, gas piping, fire-suppression systems and any smoke alarms or carbon monoxide detectors. The preventive, yet very costly, maintenance is designed to protect homes against potentially corrosive compounds found in thousands of U.S. homes equipped with Chinese drywall.
A recent federal study of 51 U.S. homes equipped with drywall manufactured in China indicates a “strong” link between in-home corrosion and drywall contents. Investigators from the U.S. Consumer Product Safety Commission with the help of Chinese officials recently conducted an indoor air study of dozens of homes recently equipped with drywall manufactured in China. Researchers concluded there is merit to the thousands of complaints the federal agency has received from U.S. homeowners.
Studies indicate hydrogen sulfide gas emitted by contaminated drywall is the primary culprit in corroding copper and silver in homes equipped with Chinese drywall. Researchers also discovered elevated levels of formaldehyde in newer homes – whether or not they had Chinese drywall. Modern cabinetry and carpeting emit low levels of formaldehyde, according to researchers. Although formaldehyde and hydrogen sulfide gas amounts detected were too low to pose safety risks, federal investigators suspect a combination of them and other compounds commonly found in homes potentially might be harmful to structures and public health.
A more recent federal study showed various drywall samples manufactured in China emitted the most reactive hydrogen sulfide with some producing 100 times more of the potentially corrosive substance than drywall from other nations. Although the study discovered several acceptable samples of drywall manufactured in China, samples produced in China during 2005 and 2006 generally fared the worst against non-Chinese products. Samples of drywall manufactured in China in 2009 generally tested much better than earlier batches.
Deliberations Underway in Florida Chinese Drywall Case
June 18, 2010 – The case of a Miami home contaminated with bad Chinese drywall will prove to be a precedent-setting legal decision in Florida and elsewhere as the jury began deliberations yesterday.
The Florida jury will decide to what extent a drywall supplier is liable for damages done to the home in question. Attorneys representing the drywall supplier argue the firm should not be liable for damages exceeding the actual cost to correct the problem. Chinese drywall imported primarily between 2004 and 2006 has been found to be defective and contain potentially corrosive elements.
But Florida isn’t the only state dealing with Chinese drywall. The Louisiana Legislature recently approved a measure protecting homeowners against insurance cancellations due to having Chinese drywall in their homes. If signed into law, the measure would ban homeowners insurance companies from canceling or refusing to renew insurance policies, but insurers may increase insurance premiums or deductible amounts. The proposed law specifically refers to drywall manufactured or imported from China before this year and would impose a maximum $15,000 fine on insurance companies for violations.
Affected by contaminated drywall more than any other state, Louisiana has had thousands of homes equipped with defective drywall manufactured in China, much of which was installed during massive rebuilding efforts after Hurricane Katrina devastated New Orleans and others Gulf Coast cities in 2005.
Officials for the U.S. Department of Housing and Urban Development and the U.S. Consumer Product Safety Commission recently issued an official report recommending homeowners remove all traces of Chinese drywall and replace all electrical wiring and components, gas piping, fire-suppression systems and any smoke alarms or carbon monoxide detectors. The preventive, yet very costly, maintenance is designed to protect homes against potentially corrosive compounds found in thousands of U.S. homes equipped with Chinese drywall.
A recent federal study of 51 U.S. homes equipped with drywall manufactured in China indicates a “strong” link between in-home corrosion and drywall contents. Investigators from the U.S. Consumer Product Safety Commission with the help of Chinese officials recently conducted an indoor air study of dozens of homes recently equipped with drywall manufactured in China. Researchers concluded there is merit to the thousands of complaints the federal agency has received from U.S. homeowners.
Studies indicate hydrogen sulfide gas emitted by contaminated drywall is the primary culprit in corroding copper and silver in homes equipped with Chinese drywall. Researchers also discovered elevated levels of formaldehyde in newer homes – whether or not they had Chinese drywall. Modern cabinetry and carpeting emit low levels of formaldehyde, according to researchers. Although formaldehyde and hydrogen sulfide gas amounts detected were too low to pose safety risks, federal investigators suspect a combination of them and other compounds commonly found in homes potentially might be harmful to structures and public health.
A more recent federal study showed various drywall samples manufactured in China emitted the most reactive hydrogen sulfide with some producing 100 times more of the potentially corrosive substance than drywall from other nations. Although the study discovered several acceptable samples of drywall manufactured in China, samples produced in China during 2005 and 2006 generally fared the worst against non-Chinese products. Samples of drywall manufactured in China in 2009 generally tested much better than earlier batches.
Louisiana Lawmakers Approve Protections Against Chinese Drywall
June 16, 2010 – The Louisiana Legislature has approved a measure protecting homeowners against insurance cancellations due to having Chinese drywall in their homes.
If signed into law, the measure would ban homeowners insurance companies from canceling or refusing to renew insurance policies, but insurers may increase insurance premiums or deductible amounts. The proposed law specifically refers to drywall manufactured or imported from China before this year and would impose a maximum $15,000 fine on insurance companies for violations.
The measure does not cover business insurance policies and likely will be signed into law soon by Louisiana Governor Bobby Jindal. Upon signing, the law would be in effect only until July 1, 2013.
The measure, Senate Bill 595, was introduced by Sen. Julie Quinn (R – Metairie) and met with rapid approval in the Legislature. Affected by contaminated drywall more than any other state, Louisiana has had thousands of homes equipped with defective drywall manufactured in China, much of which was installed during massive rebuilding efforts after Hurricane Katrina devastated New Orleans and others Gulf Coast cities in 2005.
Officials for the U.S. Department of Housing and Urban Development and the U.S. Consumer Product Safety Commission recently issued an official report recommending homeowners remove all traces of Chinese drywall and replace all electrical wiring and components, gas piping, fire-suppression systems and any smoke alarms or carbon monoxide detectors. The preventive, yet very costly, maintenance is designed to protect homes against potentially corrosive compounds found in thousands of U.S. homes equipped with Chinese drywall.
A recent federal study of 51 U.S. homes equipped with drywall manufactured in China indicates a “strong” link between in-home corrosion and drywall contents. Investigators from the U.S. Consumer Product Safety Commission with the help of Chinese officials recently conducted an indoor air study of dozens of homes recently equipped with drywall manufactured in China. Researchers concluded there is merit to the thousands of complaints the federal agency has received from U.S. homeowners.
Studies indicate hydrogen sulfide gas emitted by contaminated drywall is the primary culprit in corroding copper and silver in homes equipped with Chinese drywall. Researchers also discovered elevated levels of formaldehyde in newer homes – whether or not they had Chinese drywall. Modern cabinetry and carpeting emit low levels of formaldehyde, according to researchers. Although formaldehyde and hydrogen sulfide gas amounts detected were too low to pose safety risks, federal investigators suspect a combination of them and other compounds commonly found in homes potentially might be harmful to structures and public health.
A more recent federal study showed various drywall samples manufactured in China emitted the most reactive hydrogen sulfide with some producing 100 times more of the potentially corrosive substance than drywall from other nations. Although the study discovered several acceptable samples of drywall manufactured in China, samples produced in China during 2005 and 2006 generally fared the worst against non-Chinese products. Samples of drywall manufactured in China in 2009 generally tested much better than earlier batches.
But even among samples of Chinese drywall judged unacceptable, the likelihood of damage is relatively remote. About 80 percent of samples of all kinds of drywall produced no potentially dangerous bacterial growth, even among samples with elevated levels of hydrogen sulfide.
A recent report by the Associated Press indicates some 500 million pounds of Chinese gypsum board was imported to meet domestic construction demands – particularly between 2004 and 2008 when thousands of homes along the Gulf of Mexico were being rebuilt in the wake of four hurricanes slamming into Florida during a month-long stretch in 2004 and Hurricane Katrina and Hurricane Rita destroying large areas of New Orleans and other Gulf Coast communities in 2005.
Federal officials estimate about 100,000 homes in the United States contain Chinese drywall. The total cost of replacing the faulty drywall could reach $25 billion, according to the Towers Perrin consulting firm. Some Chinese drywall manufacturers have said their products are safe and suggested bad gypsum tainted only some of the materials shipped to the United States in recent years. Many homeowners have blamed the Chinese drywall for corroding their homes’ copper pipes, causing other property damage and making family members ill.