Insurance Dispute Lawyer Blog

Olivia Flores Alvarez had an entertaining blog post about how museums in the Houston area are preparing for hurricane season that's worth a read. Available here, the article takes a lighter approach to the issue of tropical storm preparation for buildings in the Gulf Coast region that house priceless works of art.

An excerpt

Hurricane Ike, which pretty much shut Houston down for a couple of weeks, didn't affect the Aurora Picture Show's programming schedule last year. "We continued with the screening we had planned," says Tepper. "The city was still a wreck and the turnout was extremely modest, but we went ahead. We actually served Hurricanes, the drink, during the show. A lot of people still weren't driving after the storm, so it was just people from the area. Everyone came over; we had air-conditioning and Hurricanes. It actually was a fun, little community event."

...

Once a storm is imminent, the museum staff, board members and volunteers all pitch in to secure the art and office equipment. Curators fill sandbags, board members and volunteers cover storage racks with protective sheeting. "Planning in advance has been a big part of our success," says AMSET public relations coordinator Melissa Tilley. "Up until it's time to evacuate, we're working on securing the museum."

FEMA recently came out to publicly encourage residents of Florida and the Gulf Coast to get flood coverage, regardless of how susceptible to risk they may be. In doing this, the government is bringing more attention to the need for proper insurance policies and to prevent having to help out thousands of people who thought it 'could never happen to them.'

Matt Gilmour of the Tallahassee Democrat highlights this important step on the part of FEMA

With hurricane season under way, the Federal Emergency Management Agency is reminding Florida residents about the importance of flood insurance, even if they don't live in high-risk areas.

"It takes 30 days for flood policies to take effect and be active, so today's a good day to speak to a local insurance agent about what policy would be best for you," FEMA coordinating officer Jeff Bryant said in a written statement.

Anyone who lives in a community that participates in the National Flood Insurance Program can purchase flood insurance, and between 20-25 percent of those who file flood-insurance claims do not live in areas at high risk for flooding, according to a news release from FEMA. After Tropical Storm Fay in 2008, nearly 150 flood-insurance policyholders with properties in areas with a low-to-moderate risk for flooding received more than $7 million from the insurance program in settlement payouts.

"This should be a lesson to us all that everyone needs flood insurance — even those who believe their property won't flood because their home or business is in an area that normally doesn't flood," said Doug Wright, state coordinating officer with the Florida Division of Emergency Management.

FEMA is helping all eligible applicants who register directly with the agency and urging them to file claims as soon as possible to help speed up their recovery. For more information, visit www.floodsmart.gov or call (888) 275-6347 or (800) 427-5593.

By being proactive on prevention of home and property owners from having too little of coverage, FEMA and the government are trying to avoid catastrophe while at the same time keep information out and fresh. Both are extremely important and positive actions at a time where money is short and people looking to save a little bit of money might not garner the coverage they need that, in the event of a disaster, could be catastrophic.

On the campus of the University of Houston, a new storm preparation center will work to educate students and area locals on the effects and dangers of hurricanes while developing technology to predict and innovate protection against such storms. Justin Horne of KIAH reports

The Texas Hurricane Center for innovative technology was developed last year at the University of Houston. The center was created with ideas, in mind, to combat the effects of hurricane season. And now researchers are ready to make these ideas a reality.

Dr. Vipulanandan, a civil engineering professor at the University of Houston, has been working with his engineering students to develop this technology.

The center's theme is "rapid recovery", and their plans for future technology could be revolutionary. Dr.C. Vipulanandan believes the new wave of technology is effective. "This is being used in Japan very effectively and other countries in Europe. I think it is time for us Texans to wake up and look at alternatives to protect our coastline," he said.

In the meantime, the research continues, and students will be ready if another hurricane head this way. On August 7th, the center will be hosting a conference that will include speakers like Lieutenant Governor David Dewhurst and Mayor Bill White. The conference will focus on the latest plans and procedures to prepare for hurricanes. This event is open to the public.

Any education or research regarding hurricanes and how to best prepare for the onslaught of one is a positive assistance to the community as a whole. Hopefully this new center will help make sure that the disasters of tomorrow are not as bad as they have been, or could be, should such storms arise in the future.

The recent events in Florida and the exit of various insurance companies from areas surrounding the Gulf Coast have raised a lot of speculation on how to preserve competition within these states while at the same time not forcing the government's hand to bail out in the event of a disaster. About a month ago The Florida Times-Union wrote on this topic and how drastic the decisions may be to keep a level playing field for residents.

Florida's property insurance system is a ticking time bomb, one that could wreak havoc on the state's economy when - that's when, not if - the next hurricanes hit.

This is because the state-run catastrophic fund, which shares property insurance risks with companies that sell policies here, is egregiously underfunded.

In a worst-case scenario, insured homeowners might face long delays in getting money to rebuild their hurricane-damaged houses - and all Floridians could be stuck with very high taxes or "assessments" to raise the needed money.

So, what's the solution?

Ideally, it would be to spread out some of the costs through a federal catastrophic natural disaster fund, similar to the federal flood insurance program.

It's doubtful that either of Florida's senators, or any of its House members, have enough clout with their colleagues to get the job done.

While there is no clear answer in sight and Florida is not alone on this issue as insurers in Louisiana and Texas have shown the same sort of reluctance and could go the way of others soon, debate on reform is essential. Without this topic being out in the public discourse, policy holders can be left shocked when a provider pulls out of a state or region.

KBMT in Southeast Texas similarly outlined issues relating to premiums and insurance agents in discussing the problems facing their viewership

According to the Insurance Information Institute, homeowners insurance premiums are up about three percent nationwide and probably more in some coastal areas where the potential for damage is greater.

Several factors are affecting premiums and coverage, including the $26 billion insurers paid out on catastrophic losses in 2008 and the impact of financial market turmoil on the companies earnings.

Changes in state regulations are also driving some premiums higher.

This outlook is not all that positive for homeowners in the region as a whole but, when combined with the first article, demonstrates how significantly important it is for some solution to be reached in the coming years to prevent residents of the Gulf Coast, in various states, from being damaged harshly by these insurance issues. By staying on top of the issue and making sure that the elected officials of the area and on the federal level are doing everything they can to keep insurance companies in the region and more money in the pockets of policy holders.

With hurricane season in full swing, it is important for home and property owners to be fully aware and clear about their insurance and coverage, or lack thereof, that it provides. Whether living in a flood plain or tucked safely in a non-flooding area, residents of the Gulf Coast can be affected all the same by a hurricane by the list of dangers such as wind or rain damage. Going through your policy and making sure the proper cover necessary to properly rebuild in the event of storm damage is there will help prevent nasty surprises should the unthinkable happen and serious destruction befalls you.

Tim Engstrom from Southwest Florida's News-Press has more

Most homeowners - especially those outside high-hazard coastal zones - can find coverage, but it is likely to be with a newer, less-familiar company, said Randy Duncan, an agent with the Insurance Depot of Lee County in Cape Coral.

"The days of name-brand coverage are over," Duncan said. "All that really matters is whether the company is A-rated - can it cover its expenses in the event of a loss?"

There is no "hurricane insurance"; homeowners' insurance is actually a collection of insurance coverage that includes such hazards as windstorm, fire, lightning and more.

Duncan said homeowners frequently forget that their windstorm coverage typically carries a much higher deductible - based on a percentage of the insured value - than other coverage.

The article goes on, citing the need to reup your policy coverage in the event of home upgrades or additions, as well as keeping an extra copy of insurance documents with personal documentation in a safety deposit box or other "outside" storage area away from the home. Available here, the article is a good read for anyone living in the Gulf Coast to make sure they are up to task on their preparation and insurance values.

As Chinese drywall lawsuits develop and people continue to struggle with the hidden dangers within their walls, developments continue to mount that are relevant for anyone facing these issues. Tampa Bay Online has done a good job summarizing the issues facing homeowners across the United States in regards to Chinese drywall and its corrosive capacity to harm the health and property of homeowners.

The Florida Department of Health has received more than 450 complaints from homeowners. Several federal agencies, including the U.S. Consumer Product Safety Commission, are investigating.

The drywall was used in as many as 100,000 homes across the nation during the housing boom and emits a corrosive gas that damages appliances, gives off a rotten-egg stench and may cause health problems.

U.S. builders typically use domestic drywall, but the aftermath of hurricanes, combined with growing demand during the housing boom, led to a drywall shortage. That prompted builders to turn to imported drywall, mainly from 2004 through 2007.

Builders say they didn't know about the bad drywall because subcontractors ordered it from distributors. Some builders have tracked down which shipments contained the Chinese drywall and are testing homes. Some have moved homeowners out and are replacing the drywall.

Meanwhile, class-action lawsuits against builders are mounting.

For more information regarding Chinese drywall, be sure to read the section dedicated to this faulty wallboard issue by clicking here.

The Associate Press reported earlier this month on recovery and rebuilding efforts going on in the city of Galveston as residents try to move past Hurricane Ike and into the new future of the town. Facing its first hurricane season since Ike, the residents emotions fluctuate as they try to bring their city back from the brink of complete destruction the hurricane season brought upon it last year.

Another hurricane season is the last thing Galveston wants to think about after last year's devastation from Hurricane Ike.

"Hurricane season got here a lot quicker than I thought it would. I'm still busy working on my own house, trying to get back in there," said Steve LeBlanc, manager of the island city 50 miles southeast of Houston. "But we are busy getting prepared for another season."

As the 2009 hurricane season began this week, many of Galveston's residents were still mired in repairs nearly nine months after the costliest disaster in Texas history came ashore with 110-mph winds and 12-foot storm surge on Sept. 13.

During Galveston's annual hurricane preparedness meeting on Wednesday, Mayor Lyda Ann Thomas and other officials warned the approximately 12,000 island residents who ignored an evacuation order for Ike: This time, leave when we ask you to.

It is obviously important for residents of Galveston, Texas and the Gulf Coast region as a whole for the city to be rebuilt as a sign that these disasters can and will be overcome. The lesson, it seems, that needs to be learned in the wake of such tragedy is that no storm's danger should be overlooked when people decide to ride it out or not. By being prepared and ready to evacuate in the face of approaching storms, residents can guarantee the safety of themselves and their loved ones rather than running the risk of the storm building stronger and changing direction, wreaking havoc like they did in the past three years in the Gulf Coast.

A seminar dealing with the Chinese drywall fiasco going on across the Gulf Coast will be held July 31, 2009, in New Orleans, LA. Feating a host of speakers dealing with a wide assortment of issues relating to the Chinese drywall issue, the conference is billed as "a practical, one-day seminar for attorneys, engineers, architects and contractors" looking to explain health effects property damage, exploring claims and litigatory issues, demonstrating strategies for the matter and discussing the various complexities of the cases.

The Berniard Law Firm's own Jeffrey Berniard will present on the matter of "Exploring Potential Liability for Damages Caused by Chinese Drywall Problems" with fellow attorney Scott Wolfe of the Wolfe Law Group. The lecture will cover matters relating to what parties are facing potential liability exposure, theories of recovery for construction defects, defenses and crossclaims and damages.

As part of the seminar, various different learning credits are available for participating professionals as part of continued learning education requirements. This includes 5.0 approved CLE hours for attorneys from the states of Louisiana, Alabama, Mississippi and Texas.

More information can be found at the Half Moon Seminars website promoting the seminar here or by downloading the brochure here.

In an article by Kristy Eppley Rupon of The State regarding insurance policies along the Eastern coast, a new act by South Carolina's government has helped quell fears of insurance company lockouts and helped residents secure policies where they may not have otherwise. The legislative act shows there may be some innovation in the Gulf Coast region to keep insurers from leaving like they have threatened to, or have, in other states.

Insurers started dropping policies in late 2006, after Hurricanes Katrina and Rita devastated the Gulf Coast. They were worried about surviving another catastrophic hit.

That put many coastal homeowners in a bind and left state governments scrambling to come up with a solution.

South Carolina’s answer was the Coastal Omnibus Act, which enticed insurers to enter the state’s market and write policies along the coast, Richardson said.

Many states, especially Florida, got heavily involved in the insurance industry, making it hard for companies to operate there and make a profit, said Ray Farmer, assistant vice president for the American Insurance Association’s Atlanta regional office.
“South Carolina’s legislation is kind of unique to the rest of the country,” Farmer said. “It keeps the free market at work and relies on that instead of state-funded programs.”

Several other states are now pulling from South Carolina’s plan to mold their own reform acts, Farmer said.

The plan gives tax incentives to homeowners to make their homes stronger, for example, by reinforcing roofs and putting shutters on windows, Richardson said.

Such governmental action to call upon the citizens to take action to better protect themselves not only relaxes insurers but demonstrates a self-reliance that keeps the government from being a consistent fail-safe. It would be great to see this sort of reform act pop up in other states to keep insurance companies around and providing good coverage in an area that desperately needs it.

As we posted about earlier, 21 cases have been filed against Cox et. al. as of this date. With there being so many plaintiffs, it can be difficult to decide which court will hear the case, let alone in what state the case will be tried in. This is the situation currently being handled in the class action lawsuit the Berniard Law Firm, along with co-counsel, has filed with Cox.

With 21 plaintiffs, a wide variety of jurisdictions are covered and opens up the issue of multidistrict litigation. Multidistrict litigation, or MDL, involves a party to a lawsuit appealing to a panel to decide which jurisdiction will be used for each stage of the suit, from pre-trial proceedings and then the return to an original court of acceptable jurisdiction. The panel involved with a MDL issue decides the transfer of the case to a specific court but does not supervise any of the litigation thereafter. Plaintiffs in the class action lawsuit against Cox live in Georgia, Louisiana, Arizona, Oklahoma, Florida and California.

Because the plaintiffs live in different states and Cox is subject to multiple jurisdictions, there is currently a dispute about which court the case will be held in. The defendant Cox filed with the Judicial District Panel of Multidistrict Litigation (MDL Panel) a pleading so as to have all of these cases coordinated in one court. Cox would like the panel to refer the case to the Middle District of Georgia while Berniard and co-counsel want it to be heard in the Eastern District of Louisiana. Further, some attorneys want the case to be held in Oklahoma.

A hearing on May 27 featured attorney Allan Kanner, co-counsel of the Berniard Law Firm, arguing for the case to be held in the Eastern District of Louisiana. A typical MDL Panel ruling takes approximately six weeks. An update will be posted when this ruling comes down.

As a show of solidarity with constituents and Gulf Coast residents regarding the Chinese drywall debacle, several members of Congress have stepped up to the plate and petitioned the IRS to buffer the tax expenses of those individuals who have suffered from the faulty wallboard. The effort is a practical step forward to make a very real difference in the lives of those affected while lawsuit matters and legislative measures can take months, if not years, to create change.

Aaron Kessler of the Herald Tribune reports

Three U.S. senators, including Florida Democrat Bill Nelson, and a U.S. congressman have written to the Internal Revenue Service asking that costs incurred by homeowners who have fallen victim to Chinese drywall should be deductible for federal tax purposes.

The letter, sent Tuesday, asks the IRS to clarify whether section 165(h) of the tax code — which allows taxpayers to deduct “casualty losses” suffered as a result of an unexpected event such as a fire, storm or theft — could apply Chinese drywall victims.

The letter argued that “many homeowners with these drywall-related problems are facing the immediate issue of paying for alternative accommodations as well as the mortgage on their damaged home. As you can imagine, most families cannot bear the costs associated with maintaining two homes — especially in this economy.”

A very practical way to assist those people who have often been forced to move if not simply suffer through the health issues relating to Chinese drywall, one can only hope the IRS takes this initiative and runs with it. For more information on the health symptoms relating to Chinese drywall, click here or find out more on the topic in general through this blog's Chinese drywall section.

According to a report released this week, insurance policy holders in Florida and Louisiana, among other states, are paying some of the highest rates for homeowners policies that are vastly overrated. While states like Utah and Idaho have residents who are receiving a great value for their policies, this illustrates yet again a theme of insurance prices in the Gulf Coast being out of control.

The Times-Picayune reports

Louisiana is one of six states receiving an "F" on a newly released report card ranking states' insurance climates.

The report card, which was jointly released by The Heartland Institute and the Competitive Enterprise Institute, found that consumers in Louisiana, Florida, Hawaii, Maryland, Massachusetts and New York pay more for homeowners coverage that is inferior. Each of those states was awarded an F.

Arizona, Idaho, Utah and Vermont each earned "A" grades for their healthy insurance environment.

Again this is highly unacceptable and state and federal representatives of this state need to look for a way in which this tilted scale may be leveled in order to get some semblance of fairness, or even sanity, into the insurance sector of the Gulf Coast.

As of May 26th, 2009, 21 cases have been filed against Cox et. al., alleging transgressions of the Sherman Antitrust Act and various state laws intended to prevent unlawful tying arrangements. The Berniard Law Firm, along with co-counsel, filed the first cause of action against Cox et. al. with the other law firms following behind shortly thereafter.

The Sherman Antitrust Act, established in 1890, was the first federal statute to attempt to limit businesses in the sphere of monopolies. Fundamentally antiturst law, the act works to prevent business practices that limit fair and open markets. The Act reads "Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty of a felony." Simply put, the Sherman Antitrust Act was implemented to make sure the people were not taken advantage of by big business while also keeping companies in check and limited from dominating one realm of commerce.

In this vein, antitrust law also prevents the illegal tying of a product to a business' service. That is to say, the law provides protection to consumers from a company requiring the exclusive use of a specific item in order to fully enjoy whatever service the consumer is subscribing to or using. In the case of Cox, the Berniad Law Firm and co-counsel allege that the exclusivity rooted in the specific use of the set-top box necessary for premium cable and attainable only through rental is an example of illegal tying.

For more information on the class action against Cox, bookmark CoxClassAction.com.

In a news piece by Talk Radio News, testimony regarding the barriers being put in place to avoid another disaster like Katrina is profiled and has some interesting points that it brings to light

Brigadier General Michael Walsh, Commander of the Mississippi Valley Division of the U.S. Army Corps of Engineers, informed the Senate Environment and Public Works Committee the goal of providing hurricane protection and coastal restoration in Louisiana is on track.

In his testimony, Walsh said, “the system is stronger and more resilient than prior to Katrina or any other time in history”.

Despite Walsh’s assurance of visible progress, Sen. David Vitter (R-La.) argued that the U.S. Army Corps of Engineers had failed to properly focus on rebuilding the canal walls.

“We are choosing the wrong fix for the biggest thing that went wrong that caused catastrophic flooding in New Orleans,” said Vitter.

With conflicting views, more discussion and the brightest minds are going to be necessary to make sure the best, most carefully worked-out plans are utilized as another disaster like Katrina would be just as devastating as it was in 2005.

While catching up on some hurricane news for the Gulf Coast region from June, we came across this story about relief fraud in the wake of Hurricane Katrina

A federal grand jury in Atlanta has accused four people of fraudulently obtaining tens of thousands of dollars in government assistance for victims of Hurricane Katrina.

Federal prosecutors said Wednesday that 37-year-old Kristine Clark and 24-year-old Michael Rouzan, both of Decatur, Ga., were charged in one indictment, and 26-year-old Markisha Burks of Dallas and 43-year-old Lucien Danthon of Atlanta were named in separate indictments accusing them of falsely claiming they resided in New Orleans at the time of the 2005 storm.

Charges include wire fraud, mail fraud and theft of government funds.

Prosecutors say Clark and Rouzan obtained $32,000 for housing assistance and purported property damage, and a trailer in Hammond, La., where they lived from May 2006 to March 2008.

It's extremely frustrating to hear of how people took advantage of the tragedy suffered by the city of New Orleans but even moreso to see how their claims may justify stricter action by the government that can injure those with real needs after the next tragedy. Punishment for such fraud should be handled swiftly and aggressively to send a message so that if such an event occurs, anywhere in the country, opportunists avoid taking assistance from the people who truly need it. In the event there is any debate over eligibility for such assistance, contact an attorney or government official immediately before assuming and opening yourself up for jail time and fines.

Per The Times-Picayune

Newly revised Preliminary Digital Flood Insurance Rate Maps showing the potential for flooding caused by a 100-year rainfall and hurricane-strength surge for New Orleans will be available for review and discussion at a Wednesday open house in City Park.

The event will be held from 2 to 8 p.m. at the Pavilion of the Two Sisters in the City Park Botanical Gardens on Victory Drive.

Specialists will be available to answer questions about the maps, which will be available in paper and digital formats.

Viewing the maps is a great opportunity for home and property owners to see an updated technological analysis of their risk of flooding. With experts on hand to help explain what is being illustrated, New Orleans residents may find out more on how rainfall specifically may affect and harm their home depending on where it sits in the city.

The Louisiana Mapping Project may be found online at www.lamappingproject.com. There you will find more information and details regarding FEMA's Louisiana Mapping Project and how they are developed and adopted. You may also call the project through their call center at (866) 751-3989, M-F 9 a.m. to 4 p.m.

Per a federal MDL Panel, the pre-trial court matters for the Chinese drywall class action lawsuits being filed on the behalf of American consumers will be handled in the United States District Court's Eastern District court in New Orleans, Louisiana. The Panel ruled, in this case, to have New Orleans be the central area for all pre-trial motions and issues relating to the cases of Chinese drywall in an effort to consolidate the matter before a single judge so there is no conflict over different judicial decisions relating to what may be included in evidence, etc. With all of the case issues being handled exclusively in New Orleans before court proceedings resume in the original jurisdictions where the cases were filed, new attention may come to the plight of those home and property owners with Chinese drywall that live in this area.

Per The Times-Picayune

A panel of federal judges ruled today that class action suits filed around the country against Chinese drywall manufacturers will be docketed in New Orleans.

The so-called Multi-District Litigation Panel, which consolidates similar cases filed in different federal courts before a single judge, has assigned the case to U.S. District Judge Eldon Fallon.

Local attorney Daniel Becnel Jr. had argued before the panel several weeks ago that the various Chinese drywall cases, filed in Florida, Ohio and other states, should be heard in New Orleans.

The case should have significant economic impact on New Orleans, as it could fill local hotel rooms with hundreds of lawyers, expert witnesses and others participating in the case.

This is great news for those homeowners in the city who are wishing to file suit against the manufacturers, also, as local attorneys will be able to better access this case at a reduced cost because of how near the venue is. All in all a great development on this issue for New Orleans residents and property owners.

In previous entries, this blog has referred to materials manufactured in China erroneously as sheetrock. The term 'sheetrock' is actually a trademarked term for the United States Gypsum Company and refers to plaster wallboard manufactured by their company exclusively. As USGC does not create or manufacture wallboard in China, we have since edited our entries to convey this difference.

The Berniard Law Firm, along with a collection of other attorneys from the region, has continued its class action lawsuit against Cox for what we believe to be unfair practices relating to the set-top box used for premium services. Motions have been handled and research is full-swing as we try to build the best case possible for customers who feel they have been unfairly charged or not given acceptable options for purchasing their own box. Our goal is to have the judiciary see that Cox's refusal to provide option or choice in their practices injures their customers and that change is necessary to keep things fair in the cable market. We welcome any Cox customers who would like to join the class action to click here and become a part of this important lawsuit.

To keep abreast of the developments as they become available, bookmark CoxClassAction.com or continue to read this blog.

Follow the Berniard Law Firm on Twitter for more information about Chinese drywall, hurricane insurance disputes, Gulf Coast news and other legal issues relating to residents of Louisiana, Texas, Florida and Mississippi.

Go to http://twitter.com/BerniardLawFirm for more information

In order to best utilize your time this weekend, check out some helpful tips on how to prepare yourself, and your family, for hurricane season. WTKR has more

Have supplies on hand to last at least three days. Put these essentials in your kit:

Food that won't spoil, such as canned goods and packaged foods

Water, one gallon per person per day

A working battery-operated radio and extra batteries

A written family emergency plan

Once you have the essentials, you should add these items to your kit:

Flashlights and extra batteries

First aid kit including a list of allergies and extra contact lenses or glasses

A written list of your prescriptions and the prescribing doctor(s) and at least a week's supply of medications

Sanitation supplies: toilet paper, soap, plastic garbage bags and personal hygiene items

Change of clothing, sturdy shoes and a blanket or sleeping bag

Special items for infant, elderly or disabled family members

People can never be too prepared when it comes to storm readiness. By insuring these items are available and at the ready, residents of the Gulf Coast region can be ready for sudden storms. In the event of a storm that has given plenty of warning, evacuation is always the safest and least risky choice to make.

In a followup to the Chinese drywall legislative bill going through the Louisiana state government previously discussed here, the piece of legislation has been sent down to committee again for review. The Associated Press writes

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.

While this bill is very optimistic, it will be interesting to see how it develops over time. The legislation would be strongly opposed to by businesses in the state but does show initiative on the part of government for change to be developed.

For more information and developments on Chinese drywall news, bookmark our Chinese drywall section of this blog.

With all the health symptoms of Chinese drywall exposure and the damage this faulty wallboard has caused to homes and properties, those affected have been quick to look for a solution that can help them return to a life of normalcy. The recent developments, catalogued on this blog here, have shown several different rays of hope might exist for those involved as state and federal government officials have taken on the issue to help those affected. However, a speed bump has developed that seems to be slowing down progress for now.

A spokesperson with the American Insurance Association told BradentonHerald that insurance companies in many states have received claims regarding Chinese drywall damage, but could not say how many. The spokesperson also said most so far have come from states where high humidity is prevalent - such as Florida.

According to one Florida attorney handling drywall cases, insurers are rejecting claims “across the board,” BradentonHerald.com said. However, the lawyer said he still recommends that people with Chinese drywall damages file a claim with their homeowner’s insurance carrier so that the company has notice that the material is in the home.

According to BradentonHerald.com, many homeowners might have better luck if they file claims under the builder’s, drywall supplier’s or drywall manufacturer’s commercial general-liability policy. However, there is no guarantee that will work.

The article, found here, goes on to further profile how, despite the fact elected officials are moving forward in trying to find an avenue of assistance for their constituents, no solution stands out that will get people out of their homes when they have nowhere else to go. A resolution of some sort is necessary to help get people into a safe environment and away from whatever harms may come from exposure to the drywall.

By contacting medical professionals and builders or contractors with experience on the issue, while at the same time contacting an attorney, people can make their situation more widely known and cover all the bases necessary when the remedy becomes available to this plight. Any individual who suspects Chinese drywall may have been used in the construction or repair of their home or property should also contact their local and state representative to help make the widespread reality of this issue more apparent. In taking action rather than waiting to see what avenues of assistance may become available, those affected may in fact drive the change they need to get the ball rolling.

On February 10th, 2009, the Berniard Law Firm filed suit against Cox et. al. on behalf of a putative class over, what they allege to be, antitrust violations relating to set-top boxes and Cox's rental policy of such. A putative class is one in which a collective group of people have all suffered a similar harm or common wrong. On March 4th, Cox (hereafter referred to as Defendant) filed a Notice of Removal to take the matter out of state court and put it into federal court. Less than a week later, Defendant filed a Motion for Extension of Time to Answer, nothing more than a request for an extension to address the matter. This request was granted.

On the 12th of March, The Berniard Law Firm, with attorneys Madro Bandaries and Gregory DiLeo, filed to be entered as Interim Co-Lead Counsel with Madro Bandaries and Gregory DiLeo as interim liaison Co-Counsel. The defense filed a Motion to Stay on March 20th that specifically requested the Court to stop all litigation and wait for the MDL Panel to rule on what venue would be taken. The same day, the defense also filed a Motion to Expedite asking for the court to expedite consideration on this stay to avoid further delays. This request for expediting consideration of the stay was granted three days later.

While the defense has submitted an opposition to the Berniard Law Firm being considered lead counsel, filed on March 23, the Berniard Law Firm has filed with the court their desires to continue litigation of the case on behalf of the plaintiffs. Since then, various motions and responses have been filed regarding oppositions to stay the case. March 26th the Berniard Law Firm filed an opposition to Cox's motion to stay pretrial proceedings citing the undue hardship suffered by the plaintiffs as they continue to be charged for what we allege to be an unfair service practice.

On April 1st, the hearing on the Motion to Stay and Motion for Lead Counsel were held before the court. Prior to the hearing, Berniard et. al. attorneys were contacted and agreed to work with other attorneys who filed similar causes of action against Cox after the Berniard filing. In the best interest of the class and proceedings against Cox, the firm agreed to work with these other attorneys. The same day, a Motion Hearing was filed and entered and an Amended Complaint was submitted in court stating both sides will meet again in two weeks. The hearing was continued to the 14th so that Berniard et. al. and new attorneys could work on resolving the stay issue and Motion for Lead Counsel matter without court intervention with Cox defense attorneys. An agreement failed to be reached so, at the hearing on the 14th, parties argued the Stay Motion and issues relating to the preservation of evidence. The stay was granted one week later, with the Court ruling such a pause was acceptable while ordering Cox to preserve evidence in the meantime.

While this timeline features an excess of legalese and motions based upon what some people would consider insignificant, it is important for those interested in the case because it demonstrates an active and forward-moving process in which the Berniard Law Firm is progressing the class action. The court's ruling on April 21st to force Cox to preserve evidence in the midst of the stay is a win for Plaintiffs as it essentially locks in and maintains the legitimacy of those items and issues which we argue demonstrate Cox's unfair business practices.

Be sure to continue to follow the Cox class action website (http://www.CoxClassAction.com) for more updates as the case proceeds.

While the Army Corps of Engineers continues to design, build and implement a storm preparedness system that prevents the type of flooding New Orleans saw after Hurricane Katrina, the price has gone shockingly high. Per an Associated Press article, creating a satisfactory system of floodgates and other water barriers will cost nearly two billion dollars, nearly 15% of the budgeted money the area was given to rebuild.

Top brass at the Army Corps of Engineers say the estimated price of a major project to build three floodgates and a 1.8-mile storm surge barrier to protect New Orleans from hurricanes is now $1.8 billion.

The cost of closing off the Inner Harbor Navigation Canal has risen since the project began last year. The structures being built on the eastern flank of New Orleans are among the most important features in the Army Corps' plan to defend the city against hurricanes.

Army Corps officials say they have asked Congress to allow it to use $540 million in funds slated for other projects to finish the work on the canal by 2011.

In all, Congress gave the corps $14.3 billion after Hurricane Katrina to build a better flood protection system for the New Orleans region.

It is important this project does not get weighed down in the bureaucracy of delays and halts while budgeting is figured out because the city cannot afford, literally, to experience another meltdown of implemented fail-safes as it did in the wake of Katrina. By prioritizing this effort, the government would demonstrate a clear desire to protect the city from future harm and give the corps a project it can be proud of completing. To not do so would be catastrophic when the next great hurricane comes.

The United States government has decided that those trailers that have not already been recalled from victims of the hurricane may be sold to them to the tune of one dollar. The Associated Press reports

The Federal Emergency Management Agency said Wednesday that it would allow hurricane victims on the Gulf Coast still living in government-supplied trailers to buy their temporary homes for as little as $1.

The government will also provide $50 million to help other trailer residents, whose homes were destroyed by hurricanes Katrina and Rita in 2005, move into rental or public housing.

The assistance comes just days after the official start of the 2009 hurricane season and one month after FEMA announced that it was ending the temporary housing program it started in the aftermath of Katrina.

The more than 3,400 people still living in FEMA trailers in Louisiana and Mississippi had faced eviction.

The avoidance of evicting these individuals is obviously a big win for a region in which such an influx of homeless would be disaster. By providing such a long term fix for individuals as they still try to rebuild or affordable housing, FEMA is keeping the people of both states from facing an increase in 'tent cities' or other short term fixes that the homeless have been forced to undertake at the detriment of the community. While not a long term solution for those who lost their homes, these trailers at least provide the peace of mind that no dramatic steps will be forced upon them like an eviction or coming 'home' to find the trailer gone.

A recent Times Picayune article profiles the effects the recent Chinese drywall dilemma have caused residents of New Orleans in this time of great stress. Brought in by the millions, the drywall was used steadily in the wake of Katrina with an unknown number of local residents having it installed in their homes. As time progresses, however, more individuals are finding out the toll having this wallboard used is causing them:

Consumers, such as Jennifer Belsom, whose homes are lined with noxious Chinese drywall are angry, helpless and embittered. The tainted drywall has sickened their families and corroded their appliances, yet few sources of help have emerged to help them tear it out of their homes.

Insurance companies have denied their claims. Builders will not return their calls. Their mortgage lenders offer no reprieve if they want to move out of their house to escape the potential health threat. In the absence of a federal disaster declaration, they cannot obtain a rental voucher or a Small Business Administration loan to help with repairs.

The drywall has thus become a financial catastrophe for residents of greater New Orleans, many of whom exhausted insurance money or personal savings to repair homes after Hurricane Katrina, only to be forced out again by toxic building material many believe contributes to nosebleeds and respiratory problems.

As her baby battled rashes and a continual sinus infection, Belsom and her family moved out of the home they repaired in Meraux and into another they had planned to use as a rental. Belsom is at a loss for what to do with the contaminated property, which she believes is nearly worthless as long as it contains the tainted drywall.

Unfortunately there is no clear-cut solution for residents to implement besides contacting a doctor and legal expert when these symptoms begin go pop up. Opinion consistently leans towards vacating the property as soon as possible but the next step is often difficult. By notifying the builder or contractor of the project that brought in the goods and legal and medical experts, the ball will at least be rolling to make sure your interests are covered when the dust is settled and compensatory efforts are started.

In news of the strange, New Orleans mayor Ray Nagin, his wife and an aide are being quarantined in China as a result of swine flu exposure. CNN reports

New Orleans, Louisiana, Mayor Ray Nagin, who traveled to China on an economic development trip, has been quarantined after possible exposure to the H1N1 virus, his office confirmed Sunday.

Nagin flew on a plane that also carried a passenger who is being treated for symptoms suspected to be from the virus, commonly known as swine flu, the mayor's office said in a statement.

Nagin, his wife and a member of his security detail have been quarantined in Shanghai, though all three remain symptom free, the statement said.

"The mayor is being treated with utmost courtesy by Chinese officials," the statement said.

Just bizarre...

In something that will likely not come as a surprise to residents of New Orleans, a planned command center for emergency operations in the event of a hurricane that was scheduled to be ready last Monday is nowhere near ready.

In pictures provided by WWL, the site looks more like a recent renovation than what is supposed to be the nerve center for communications should a devastating storm return to the city.

WWL's Scott Satchfield reports

When hurricanes threaten emergency operations centers, or EOC’s, across the state are the nerve centers for first responders and emergency managers. It's where they come together to make key decisions for public safety.

That won’t be happening anytime soon inside the space that is designated to become the New Orleans’ new emergency operations center.

Located on the ninth floor of City Hall, it's mostly empty aside from some wires hang from the ceiling, and piles of broken concrete sitting on the floor.

It was supposed to be ready by Monday, the first day of hurricane season.

While an office exists now, there is a very urgent need for the delays that have put off this new site's construction to be removed and work to go forward. Though it will obviously not be in place for this year, one can only hope it will be operational in 2010.

In an effort to share ideas and strategies on the Chinese drywall issue, lawyers from across the country are meeting in Florida to discuss this matter. Aaron Kessler of the Herald Tribune reports

Attorneys from all sides of the tainted Chinese drywall issue descended Thursday on Orlando for a two-day conference dedicated to the growing problem -- now apparently international -- and the lawsuits stemming from it.

The conference, sponsored by HarrisMartin Publishing, drew more than 200 attorneys -- bringing together everyone from those representing struggling homeowners to builders and insurance companies to drywall manufacturers themselves. High-powered class action lawyers traded jibes with their counterparts on the defense side -- some good-hearted, some not so gentle -- and all wondered just how the drywall issue would ultimately get resolved.

The conference came as four U.S. senators on the powerful Appropriations Committee, including its chairman, sent the U.S. Consumer Product Safety Commission a letter directing it to use $2 million from its budget to move forward with immediate testing aimed at determining the root of the problem once and for all -- something the CPSC has said it was already planning to do. Federal investigators have been on the ground in recent weeks, including at a Lakewood Ranch home, and this week they stepped up further testing conducted at homes in Florida.

While cynics might think this is an effort for lawyers to share how they are going to extend the issue in the court room or how to make this situation make them money, it's also important to see that finding common ground amongst the different sides of this issue can greatly increase the chances of settlement and reasonable cooperation. By familiarizing themselves with the circumstances, hopefully these attorneys will be able to work together outside of the courtroom to make sure both sides of the matter get what can be considered fair.

This weekend is as good a time as any to prepare your family, home, business and/or property for hurricane season. Our blog has featured various tips on how to be ready in the event of a hurricane and what steps you can take to insure you are on solid footing in the aftermath of a storm.

Simply go to the Storm and Hurricane tips section of this blog to find out more information.

In a move intended to open the door for home and property owners to use the judicial system to remedy damages incurred by the use of Chinese drywall in their recent constructions or renovations, the Louisiana legislature is opening up the avenues for lawsuits against those who brought the faulty wallboard to the state.

In an article featured by the AP, the state legislature's efforts are detailed as residents begin to move forward and past this building disaster

Chinese drywall products that some people blame for health problems, unpleasant odors and material damage in homes where it is used is the subject of legislation coming up for debate in the Louisiana Senate.

A bill by Sen. Julie Quinn of Metairie would allow homeowners who unwittingly used such materials in their houses to sue the makers, distributors and sellers of the material for damages and attorney fees.

The Senate is scheduled to take up the bill Thursday morning.

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.

Any sort of movement of shifting the burden away from homeowners and onto those individuals or organizations responsible for cutting corners and bringing faulty materials into the United States is very important. We'll continue to monitor this situation as it moves through the legislative channels.

While much to do has been made of the potential health problems associated with exposure to Chinese drywall, experts have begun looking into the issues caused by the use of these materials. Gary Rosen, Ph.D., has tendered a study on Chinese drywall that exposes the structural side of these building materials and certain items are worth noting. His Q&A regarding Chinese drywall answers several questions about the wallboard and exposes problems that might not be immediately considered.

First, the identification of Chinese drywall can help home or property owners in their pursuit of answers. According to Rosen, "All US drywall has special markings on the edge tape. If there is no writing on the edge tape indicating an American brand, or the edge tape is generic looking either clear/milky plastic, or plain white paper this would rule out American drywall." As such, because of the specific labeling of U.S. drywall, that wallboard that stands out as without these elements should be looked into further. One brand of problematic drywall, Knauf brand, has the name 'KNAUF' stamped on the back. It is important to note, however, that NOT all Chinese drywall is considered problematic but, rather, has been ISO approved, such as the BNBM drywall from Beijing.

Because of the variance that has been found in the test results of drywall considered problematic, Rosen avoids declaring Chinese wallboard a public health hazard just yet but focuses, instead, on the danger and dilemma created by the use of the material in construction. While he remains inconclusive on just how damaging the drywall may be to electrical fixtures and metal elements, Rosen, on the topic of replacing 'good,' non-harmful drywall used around the Chinese drywall, does state "no doubt removal of the drywall and replacement with new is the best approach."

Again, avoiding the potential health issues associated, the author directly approaches the structural problems created by Chinese drywall:

Q. Does the Chinese drywall weaken over time as some people claim?

A. The reactions that cause the release of the sulfur gases also appear to be weakening the Chinese drywall.

We believe that the Chinese drywall has problems not only in regard to giving off sulfur gas (pollution) but, as a result of this weakening, it also has structural problems: Does not meet accepted standards of quality for building materials (construction defects.)

It is known that problem Chinese drywall has a significant amount of pyrite (with is composed of iron and sulfur). And it has been known throughout the centuries that stone/rock used for building must be free of pyrite because in weathering, pyrite deteriorates and would release corrosive iron sulfates that discolor and destroy stone. The same appears to be true for [drywall].

We believe that due to its continually weakening state, Chinese drywall material on ceilings will eventually collapse. Testing is underway to quantify the extent that Chinese drywall is weakening.

For more information from Gary Rosen, Ph.D., regarding Chinese drywall or mold issues at large, visit his website at www.mold-free.org.

In a report by Fox News, most coastal residents are not prepared for hurricane season.

Many Americans who live in Gulf and Atlantic Coast states are not prepared for an active 2009 hurricane season, despite being slammed last year, a new Mason-Dixon poll found.

More than half those surveyed, 66 percent, said they don't have a hurricane survival kit and 62 percent said they don't feel vulnerable to a hurricane or related tornado or flooding.

A majority of them, 83 percent, said they haven't done anything in the past year to make their houses more hurricane-resistant, according to the poll.

While the last fact, that more preparation has not been undertaken since last year, may be a bit misleading as many residents of the Gulf Coast took extraordinary measures in the wake of Katrina to be ready, these numbers are still troubling. Storm and Hurricane preparation and informational tips are available within this blog and residents of Louisiana, Florida, Alabama, Texas and other states are urged to become vigilant in keeping up in their preparations. Check your insurance information to see if it covers any new developments or additions to your home or property and, again, follow some of these tips. The time is most definitely well spent as the storm season approaches.

Today, according to the Atlantic Oceanographic and Meteorological Laboratory, marks the beginning of hurricane season.

The Atlantic hurricane season is officially from 1 June to 30 November. There is nothing magical in these dates, and hurricanes have occurred outside of these six months, but these dates were selected to encompass over 97% of tropical activity. June 1st has been the traditional start of the Atlantic hurricane season for decades. However, the end date has been slowly shifted outward, from October 31st to November 15th until its current date of November 30th.

Now, before it's too late, make sure your insurance premiums are up to date, your coverage is what you wanted and your home plan on emergency preparation is ready. For more information on how to be prepared for storms and hurricanes, check out our blog posts that go over a variety of ways to be prepared in the event of a disaster or tropical storm.