Insurance Dispute Lawyer Blog

After roughly 35 Floridians protested outside of a campaign fundraiser, state Governor Charlie Crist attempted to ease the concerns of residents facing the struggle of Chinese Drywall. The News-Press reports

Gov. Charlie Crist walked over to a group of about 35 protesters who have defective drywall at about 7 p.m. today and told them what they wanted to hear: That he would look into making an emergency declaration on the drywall.

This response came, however, after a series of comments that make some question just how aware of the situation the Florida governor is. When he first began discussing the issue with the protestors, Crist urged them to seek help from the Charlotte County Housing Authority and the funding it holds for Housing and Urban Development. The group quickly rebuked him, clarifying the funds were earmarked and demonstrating the knowledge and wherewithal that comes from dealing with such a chaotic situation as Chinese Drywall, and the pursuit of assistance, has been.

While Crist then followed up explaining the potential of a state intervention, some protestors remained skeptical.

“A snow job,” Hummer said. The reason is that Crist began talking about HUD funds as an answer when those funds are already allocated and any trickle left over that could be dedicated to drywall remediation will not make a dent in the problem.

They were suspicious because Crist told them he had just been briefed on the issue on the way over to the fundraiser.

“He was just briefed? How can he be briefed?” asked Cardiello. “Does he live under a rock?”

While cynicism may be involved in the protestor responses, the faulty answer of the governor is an unfortunate red flag amidst a situation in which people are desperately looking for answers. Though a ruling from New Orleans seems imminent, the time it would take for that money to come in and make an impact in the lives of Gulf Coast residents struck with faulty sheetrock is unclear.

More information, as it becomes available, will be posted on this blog. For more information on the ongoing Chinese Drywall debacle, click here.

In what may come as good news to some and bad to others, the first Chinese Drywall case may be ruled upon soon. For the unfortunate homeowners stuck in limbo while the pre-trial hearings and litigation was handled, any sort of forward progress is welcome news. However, for the various manufacturers and distributors of the faulty wallboard, a harsh ruling may spell disaster for the industry.

The Fort Myers News-Press reports

The first bellwether trial in the more than 3,000 lawsuits filed across the country regarding the tainted product ended Monday; another starts March 15 in New Orleans.

The lawsuits have been consolidated in that city in federal multidistrict litigation before U.S. District Judge Eldon Fallon. What happens will pave the way for future suits.

The first trial was not to determine blame but rather the best fix and how much it will cost.

Fallon has said he will make his ruling soon in the case involving seven Virginia homes vs. Taishan Gypsum Co. of China, which has not responded to lawsuits.

With some experts believing that the cost of liability may be in the billions, and with Chinese manufacturers refusing to pay any ruling made in the United States' jurisdiction, many companies face what one expert deemed to be a "devastating" bill. Though it is unfortunate that the very producers of the faulty drywall will likely never face financial hardships for the product that has caused damage and sickness to countless families and households, the law in the U.S. dictates a chain of liability that requires justice against those involved with the import of products.

While, again, the situation seems to mirror a dine-and-ditch product import scenario, various distributors and other institutions will be left watching New Orleans closely to find out just how much the bill will be.

Many citizens of Louisiana often face difficult circumstances with their neighbors. Not just the noise or random annoyances but, instead, sheds, plants, trees or other property going across the lot and into their own property.

While a shed that is 2" too wide is often ignored by the average person, there are very real consequences of allowing this to go on.

Common law dictates that an infringing structure or item, left unchecked, can create new property rights that take away from the individual who has calmly allowed what may be a harmless mistake. Encroachment of a shed or addition to a house can expand the property of the owner of said structure to the detriment of an unassuming neighbor.

According to the ExpertLaw.com

To prove adverse possession under a typical definition, the person claiming ownership through adverse possession must show that its possession is actual, open, notorious, exclusive, hostile, under cover of claim or right, and continuous and uninterrupted for the statutory period. These terms have special legal meanings as legal "terms of art", meaning that their definition for purposes of adverse possession law may be different from a definition you would find in a standard dictionary.

What this means is that a landowner who allows for years a structure or other imposing item to come into their property faces the reality of losing ownership of that portion of their land should they be taken to or prosecute the matter. The law awards rights to people who for years have been allowed rights to the land in what many consider to be unfair and a penalty for politeness.

Louisiana law calls this process acquisitive prescription. The process comes from French law, as many of the codes and principles of Louisiana law derives, and is defined clearly in the Civil Code. Per that Code Article (3446), "acquisitive prescription is a mode of acquiring ownership or other real rights by possession for a period of time." Further, the law is relatively flexible on the limits that a claim may arise. Under Louisiana Civil Code Article 3447, "liberative prescription is a mode of barring of actions as a result of inaction for a period of time." This means that claims must arise within a certain time period. However, the law has stipulated that renewal of the time when the party who has benefited from the extended time period admits knowing of the infringement.

While a court might determine this in different ways, the fact that such a taking of property exists means Louisiana citizens must be careful with just how neighborly they are.

To give a general example:
If you own a vacant lot next to a person who has a garage that abuts your lot, and you are unaware the garage is two feet over your lot, that person could end up getting that two feet of property after 30 yrs of notorious open possession. While this might not seem like a lot, when you choose to sell the lot, it could have serious ramifications. The same thing goes for a shed in the back of your lot that you figured was not a big deal but ends up lowering your potential sale by an amount that would never be worth the kindness you showed by doing nothing.

If you find that a neighbor is encroaching on your property with a shed, their home or a variety of other ways, it is important to handle the matter swiftly and not allow time to pass. Doing so can severely limit your legal rights and punish you for what may have been considered to be an honest mistake you were choosing to ignore.

For more information on your legal rights, feel free to contact our firm for a free consultation from one of our attorneys.

The ongoing court battle over Chinese drywall rages on as the first lawsuit over the tainted wallboard will be starting soon. Just today, however, Judge Fallon dealt a blow to manufacturer Knauf's plan to provide air conditioning devices to fix the matter. Doing so means that a quick decision may come over the matter that will have widespread ramifications.

The Virginian-Pilot reports

A federal judge in New Orleans presiding over a lawsuit on local homes built with tainted Chinese-made drywall has ruled against a plan by a manufacturer to use retrofitted air conditioners as a way to help fix the homes.

U.S. District Judge Eldon E. Fallon ruled last week in a preliminary hearing that a plan by Knauf Plasterboard Tianjin Co. Ltd. to use the air conditioners was not reliable and that expert testimony about their use would not be considered in the main hearing set to begin today.

The lawsuit involves seven Hampton Roads homes built with drywall from China. The hearing will result in the first federal judicial decision on remediation of such homes and help set the standard for federal drywall trials set to begin in March.

The judge's decision last week was a legal blow to Knauf, which as a result decided Thursday to withdraw from the hearing, opening the door for a quick decision by the judge on how to remediate the homes.

Any time in which a manufacturer or importer provides a faulty product to consumers, they may be held accountable for the damage it causes. A ruling is still pending on how the problem will be dealt with, as the judge's dismissal of the air units paves the way for a solution ranging from the complete gutting of homes to selective removal of wallboard and various fixtures.

Obviously this is a highly important decision that will not be ruled upon casually. It still remains to be determined how far reaching the decision will be and how it will affect those overseas companies who refused to respond to the lawsuit. Our blog has closely chronicled the matter for some time and you may find a wide variety of information on the developments of the case here.

A positive note for New Orleans residents with Chinese drywall hoping to develop and rebuild in the wake of the toxic wallboard installed in their homes: local officials continue to reduce the financial burden of recovery. Local officials in Jefferson Parish are doing just this, per New Orleans' WVUE:

Jefferson Parish is waiving fees for inspections and permits property owners need related to problems with defective Chinese drywall. Permits are still needed for the replacement of drywall, but the permits and inspections won't cost homeowners anything as they work to fix their homes.

Many area homeowners have run into problems associated with some tainted Chinese drywall. It's been blamed for damage to electrical wiring, heating and air conditioning units and more.

Quite promising news heading into this weekend. Continue to follow this blog as new information becomes available.

Fort Myers' NBC 2 reports on the ongoing plight facing Chinese drywall and the reemerging efforts to push for federal assistance in handling the matter. Submitting hand-written petitions to the governor, families are hoping the governor is able to help handle the situation and fill up the gaps that still exist. With a town hall meeting on Saturday at the Lee Commission Chambers in Fort Myers, Florida, many people are still pushing for answers to the problems facing those who unfortunately have Chinese drywall in their homes.

As a "town hall" meeting discussing Chinese drywall approaches this weekend, affected homeowners say they're tired of politicians passing the buck on the issue. We spoke with victims and pushed for answers from lawmakers on where and when the help will come.

They've hosted top federal officials, even testified on Capitol Hill. But 27 months into their plight, Chinese drywall victims Patti and Richard Kampf say they still don't have the answers or help they need.

"No matter which way homeowners go for an answer, there's always a caveat," said Richard.

The Kampfs' latest mission is trying to get Governor Charlie Crist to issue a disaster declaration to get victims federal money.

Grass roots efforts are a promising addition to the governmental actions being carried out by elected officials as time goes on. Only time will tell if the government is able to fix the situation for homeowners but the more involved people can be in ways such as writing to officials, the more attention this situation will receive.

A heads-up to those who have left their Chinese drywall riddled homes behind because of growing health concerns: make sure security is used. Areas around the country have been facing burglaries in homes left vacant by homeowners after they discovered the faulty wallboard was installed in their homes.

The Fort Myers News-Press reports

Lee Ferguson told Cape Coral police Wednesday that he had to move out of his house on Northeast Juanita Place because of problems with Chinese drywall.

He said when he returned to check on the house, he found that thieves broke in and stole the $5,000 air conditioner.

He said the thieves pried open a window to get into the house.

Ferguson said the burglars also took the ladder to the attic, which is worth $200.

This is the second home in Cape Coral — vacant because of Chinese drywall — that has been burglarized this month.

While the immoral will always take advantage of crises, this is especially hard to stomach given the fact that families with nothing in their homes still are being riddled with problems they may never have foreseen. For those who have left their homes behind, please make sure to install or use security lights or other precautionary measures to make sure the toll that had befallen you is not further extended by the theft of copper pipes, air conditioning units, fixtures and other valuable construction materials.

News coming out of Louisiana shows that Attorney General James Caldwell has filed suit in Louisiana court on behalf of government infrastructures looking to collect money lost helping residents remove and replace Chinese drywall. The move is a positive indication that funding will likely continue to be provided and that the state government is taking initiative to help Louisiana residents move forward from this calamity.

The Associated Press reports

Louisiana’s attorney general is seeking compensation for a flood of Chinese drywall imported after Hurricane Katrina that has been linked to corrosion in homes.

James D. “Buddy” Caldwell said he filed a lawsuit in state court today to help state and local governments recoup the cost of dealing with contaminated drywall. The suit names a slew of companies - from Chinese drywall manufacturers to home developers - as defendants.

Caldwell says the state has lost tax revenues, suffered a decrease in property values and faces high disposal costs because of the drywall.

He said 1.1 million sheets of Chinese drywall were brought into Louisiana after Katrina hit in 2005. Chinese drywall allegedly emits sulfur, methane and other chemical compounds.

While these suits will pursue more funding to replenish what has been spent by local and state governments, it may mean that further money would be available as time goes on to help fix these situations. What's more, it also means there is added pressure on manufacturers and distributors now that the state has filed suit for the faulty wallboard.

Discussing the extensive backstory and saga that has unfolded since millions of pounds of Chinese drywall were imported and used in the building and repair of homes in the United States, the Broward/Palm Beach News published an excellent piece that describes how the faulty wallboard has caused problems for thousands of homeowners.

The article notes

Before '04, Chinese businesses like Knauf Tianjin had rarely exported drywall to the States. But then a housing bubble inflated the demand of homes and depleted construction supplies. In South Florida, dozens of new condo towers sprouted along every stretch of beach and bay front, and hundreds of new golf-course-centered suburbs sprouted from Florida City to Jupiter.

The market exploded so quickly that American gypsum mines and drywall makers simply couldn't keep up. Chinese-based companies like Knauf gladly filled the void, and it sent drywall the company eventually knew was faulty.

The Chinese drywall passed through South Florida ports with virtually no inspections. Developers claim they didn't know that the imported drywall was flawed when they installed it in as many as 100,000 homes nationwide. But home owners began reporting problems immediately. Air conditioners failed every two months; electrical outlets corroded to black powder; homeowners suffered constant nosebleeds and persistent coughs.

It's actually a quite excellent read and has received a lot of attention on the internet for its use of Chinese perspectives on the issue and how well it sums up the issues raging on when dealing with the matter. For anyone who has interest in the legal complexities of imported goods and legal responsibility for the manufacturers, distributors and unfortunate recipients, it's a solid read.

For those in New Orleans, and in the Gulf Coast in general, our firm wishes you a happy, and warm, weekend.

Filed in late December of 2009, a trust representing a homebuilder that used Chinese drywall in its construction efforts has sued insurers for coverage of homeowners with the faulty wallboard. The company, WCI communities, is looking for financial assistance with the rebuilding effort necessary for those whose homes contain the toxic material. The Bloomberg News reports

A trust for WCI Communities Inc., the Florida homebuilder that emerged from bankruptcy last year, sued 14 insurers to enforce more than $200 million of coverage for settlements over houses with defective Chinese drywall.

Insurers including units of American International Group Inc. and Zurich Financial Services AG must help repay more than 700 WCI customers whose homes were built with defective drywall from China between 2006 and 2008, Robert Horkovich, the trust’s lawyer, said today in a phone interview.

The complaint, filed Dec. 23 in New Orleans federal court, says WCI customers in several Florida communities claimed that Chinese drywall caused health problems and property damage such as corrosion of wiring and television connections. The case is the first among many drywall suits consolidated in New Orleans to seek money from insurers, Horkovich said.

Any sort of efforts made by parties involved in the installation or use of Chinese drywall in American homes to hold insurance companies and other negligent parties responsible is a positive. Should the suit be successful, it is likely other companies and groups will follow with their own litigation, leaving homeowners in a positive setting in terms of receiving the money to move forward in the removal and replacement of the faulty material. While the complaint still has a large amount of time before it comes to fruition, this still may be seen as progress.

“A prompt and thorough insurance recovery is vital to enabling homeowners suffering from the effects of defective wallboard to remediate their homes and recover their losses,” Horkovich said.

More information on this complaint will be posted on this blog as it becomes available.

In an effort to bring fairness and acceptable billing practices to Louisiana and beyond, the Berniard Law Firm actively worked in the interest of resident cable subscribers against two cable giants in 2009. Filing in federal court, our firm, in conjunction with attorneys of several other Louisiana firms, took aim at the tying of cable boxes to the use of premium services provided by the cable companies. Because these cable boxes were only available through rental from the cable companies themselves, subscribers were forced to pay twice for what should be limited to the service itself. Facing either unnecessary rental charges or miss out on various channels and opportunities they were already paying for, cable subscribers quickly signed as clients of our firm and took aim through a class action against these companies.

For more information on how to join these class actions against Cox and Charter cable, check out our websites:

http://www.chartercableclassaction.com/
http://www.coxclassaction.com

We look forward to the judicial process beginning on these cases in 2010.

The New Orleans area has been dealing with a cold streak that, according to the National Weather Service, may actually get worse. The NWS in Slidell has issued a warning of extreme cold temperatures in the area from Thursday to Sunday morning. This will mean many residents and citizens in the area and around it will experience a chill to an extreme that rarely is felt.

While some areas of Louisiana and Mississippi may see snow, moisture is not as much of a concern as the chill that follows. Per the NWS report

ALL OF THE MOISTURE WILL MOVE OUT OF THE AREA BY THURSDAY EVENING AND THEN THE GREATER ISSUE ARRIVES...VERY COLD TEMPERATURES. AN ARCTIC AIRMASS WILL CONTINUE TO MOVE IN AND REMAIN OVER THE AREA FROM THURSDAY NIGHT THROUGH SUNDAY.

THE AIRMASS IS NOT EXPECTED TO MODIFY CONSIDERABLY. THE AIRMASS IS EXPECTED TO BRING VERY COLD TEMPERATURES TO THE AREA THAT COULD BE COMPARABLE TO THE ARCTIC OUTBREAK OF EARLY FEBRUARY 1996...BUT NOT AS LOW AS THOSE EXPERIENCED DURING THE 1985 AND 1989 ARCTIC OUTBREAKS.

The potential for ice and poor driving conditions means motorists need to take extra precautions this weekend to prevent car accidents. Some tips from AAA for winter driving include

Avoid driving while you're fatigued. Getting the proper amount of rest before taking on winter weather tasks reduces driving risks.

Never warm up a vehicle in an enclosed area, such as a garage.

Make certain your tires are properly inflated.

Never mix radial tires with other tire types.

Keep your gas tank at least half full to avoid gas line freeze-up.

If possible, avoid using your parking brake in cold, rainy and snowy weather.

Do not use cruise control when driving on any slippery surface (wet, ice, sand).

Always look and steer where you want to go.

Use your seat belt every time you get into your vehicle.

As always, our firm hopes everyone handles this cold snap carefully and safely. For more information on the cold front, check out the NWS website at weather.gov or read the recent weather warning in full here.