Lawsuits Against Chinese Drywall Manufacturers

The U.S. Department of Housing and Urban Development (HUD) and the CPSC recently released remediation guidelines requiring that homes be gutted entirely to remove the tainted drywall and replace corroded metals. The CPSC has also identified several manufacturers of tainted drywall installed in U.S. homes:

• Knauf Plasterboard (Tianjin) Co. Ltd.
• Taian Taishan Plasterboard Co. Ltd.
• Shandong Taihe Dongxin Co.
• Shandong Chenxiang GBM Co. Ltd. (C&K Gypsum Board)
• Beijing New Building Materials (BNBM)

Claims against the manufacturers are currently being tried through Multi-District Litigation (MDL), a process in which many claims are brought through the same court to expedite justice. There are also separate actions being taken against suppliers.

Drywall Cases Settled in Favor of Plaintiffs

In December 2011, the Honorable Judge Eldon E. Fallon announced that the defendants – Knauf Plasterboard Tianjin – and the plaintiffs committee had proposed a class action settlement that would resolve approximately 4,500 Chinese Drywall claims. The settlement amount could be between $800 million and $1 billion. The compensation would cover costs of fixing the property, to be paid out of an unlimited fund, and also a capped amount of funds for personal injury and equity loss due to foreclosures and short sales.

In June 2009, the individual Chinese drywall lawsuits were consolidated together under the United States District Court for the Eastern District of Louisiana. Judge Eldon Fallon was assigned to preside over the hearings.

How You Can Get Compensation

If you believe you may have a case against a supplier or manufacturer of drywall because of toxic fumes causing damage to your home, contact the Chinese Drywall Legal Network immediately by filling out the form above or call us directly at (877) 801-3401. We can help you determine if you have a case and how you should proceed.

Important Cases in Chinese Drywall Litigation

Germano v. Taishan

The first case to be tried began on February 19, 2010. The seven Virginia families involved in the suit were ultimately awarded $2.6 million in compensation for damage to their homes. First, Judge Fallon, going beyond the CPSC guidelines, held that all drywall (both Chinese and non-Chinese) must be removed and replaced, all electrical wiring must be removed and replaced and all copper piping must be removed and replaced. Second, he held that the plaintiffs were entitled to not only the cost of fixing the damage (which he estimated to be $86 per square foot), but also an award for loss of use and enjoyment, which for most of these plaintiffs he set at $100,000. This trial helped set the stage for how future cases would be handled in the MDL suit.

Hernandez v. Knauf

This was the second case taken to trial in the Chinese drywall litigation. On April 27, 2010, Judge Fallon issued a 47 page findings of fact and conclusions of law and awarded the Hernandez family $164,049.64. This verdict has turned out to be a significant victory for the plaintiffs and for all owners of CDW homes.

Seifart v. Banner Supply

A case is underway in Miami-Dade Circuit Court against supplier Banner Supply for failure to warn homeowners about the defective drywall being sold to unknowing consumers. The suit is being brought because of evidence that Banner Supply had settled a claim in 2006 against Knauf Plasterboard regarding defective drywall they had received from the plasterboard company. Following this settlement, a Florida couple, the Seifarts, purchased a $1.67 million home in 2008 that was built with defective drywall sold by Banner Supply. One year later, they were forced to move out due to foul, metallic odors and sulfuric gases coming from the drywall installed throughout their home.