Insurance Dispute Lawyer Blog

The Berniard Law Firm would like to wish you and yours a Happy Holidays. This blog will not be updated until the New Year and we hope to hear from you then.

Have a great rest of the week and enjoy what remains of 2009.

The Palm Beach Post reports

The U.S. Department of Housing and Urban Development will soon issue guidelines on how homeowners with defective drywall can apply for federal money, according to a letter sent to U.S. Sen. Bill Nelson of Florida.

Department secretary Shaun Donovan had previously suggested during a trip to Florida that homeowners may be able to find funding under the Community Development Block Grant program.

However, when citizens failed to get any assistance from the program, government officials looked into the situation and reassessed the application process. This reexamination has led to how a new explanation might emerge to help homeowners get federal assistance for their Chinese drywall issues.

"The guidance will provide details about the eligible activities relating to drywall remediation, and the ways in which (block grant) funds can be used to benefit families with various income levels," Donovan wrote to Nelson in a letter dated Monday.

"It is my expectation that this guidance will be valuable in helping affected communities and homeowners determine how best to respond to this set of issues," he continued.

While it is hard to speculate just what will be included in this guidance, it is promising that the government continues to take steps to help alleviate this situation in a variety of ways. Only time will tell just how effective the brainstorming taking place will be but the effort being put in by members of local and federal government is encouraging.

Albeit a small step forward in the pursuit of relief for residents of Louisiana, news emerging out of last week shows that local government is doing what it can to help victims of Chinese drywall. Reducing the costs of repair efforts, the Mandeville City Council has stepped up to provide a small amount of assistance. What's more, the manner in which the Council is helping is an innovative step that might be replicated across the state.

Suzanne Le Breton of the St. Tammany News reports

The City Council approved a measure Thursday night that would give individuals who make repairs after finding tainted drywall in their homes a break on their permit fees.

Anyone with proof that the tainted drywall was used in their homes can receive a 75 percent reduction when paying for the permits to replace the plumbing, sheetrock and electrical wires in their homes.

The measure was introduced by Councilman Jerry Coogan who said he feels every homeowner or builder who used the drywall from China not knowing of what it contained had their trust violated, and they deserve to get some relief.

He said since they are not getting that relief from the federal government, it is up to the local government to do what it can to help defray the homeowner’s cost of replacing the affected parts of the home.

The 75% reduction was limited by the building inspector because the city could not offer a 100 percent rebate but does show promise. Maxing out each city's efforts in whatever way they can helps provide a road map in which relief might be provided while those with the toxic wallboard wait for a more permanent or sizable mode of assistance.

The Associated Press has a short news piece that demonstrates again how the Chinese drywall issue has affected people of all types and economic backgrounds. Reporting on a lawsuit filed against drywall manufacturer Knauf, the article notes that Saints head coach Sean Payton has been named lead plaintiff in a suit with over 2,000 party members. The article notes:

New Orleans Saints head coach Sean Payton is one of about 2,100 plaintiffs in a class-action lawsuit against a Chinese manufacturer of drywall blamed for damaging homes and sickening residents.

Payton is listed as the lead plaintiff in a suit filed [December 9th] in federal court in New Orleans against Knauf Plasterboard Tainjin Co. Numerous lawsuits have been filed over the drywall.

In June, Payton told reporters he moved his family out of their suburban New Orleans home and said he was suing the Chinese maker of drywall used in it.

The plaintiffs in the newly filed suit include residents of Alabama, Florida, Louisiana and Mississippi. Dozens of homebuilders, remodelers, building suppliers and drywall distributors also are named as defendants.

It can only be hoped that the attachment of Payton's name, albeit because he was a victim of the faulty import, might bring more attention to this situation and, as a result, lead to more pressure on manufacturers to help remedy the plight many homeowners in the Gulf Coast are experiencing.

In an effort to have victims of Chinese drywall contact the state and notify them of the toxic wallboard in their home, the Louisiana Recovery Authority has initiated a hotline specifically dedicated to the problem. The hotline, set up to help the state get a better idea of just how many people are being affected by Chinese drywall, is part of a national effort across 32 states to find out how many people have been affected. Paul Rainwater, executive director of the Recovery Authority, said the Consumer Product Safety Commission has urged states to get residents active in an effort to get official counts regarding the problem.

The Times-Picayune reports

"We will use the data we gather on homes to continue to make the case for direct federal aid to homeowners, including the possibility of using existing disaster programs for temporary housing and rebuilding assistance," Rainwater said.

People can register online at www.lra.louisiana.gov/drywallform or by calling 1.866.684.1713 Monday through Friday from 7 a.m. to 7 p.m. and Saturday , 8 a.m. to 5 p.m.

Anyone who hasn't already registered with the recovery authority is encouraged to do so, regardless of whether they were a Road Home Program applicant or whether they have already called the Consumer Product Safety Commission, Rainwater said.

As of Dec. 3, only 415 Louisianans had reported their situations to the safety commission. "We believe that's under-reporting. That's why we're doing this outreach. We think the number is in the thousands," Rainwater said.

Because the deadline for the count is December 14th, it is crucial for individuals with Chinese drywall in their home to call the number above or visit their website. Doing so will help bring attention to the plight thousands of families in Louisiana are facing with the toxic wallboard and will hopefully help get the ball rolling even faster on a recovery effort that makes a difference. Our firm urges anyone with Chinese drywall to register using the information above immediately because by doing so they are not only helping the government find out how bad the situation is in this state, they are also creating a sense of urgency around the matter.

The Miami Herald reports that the originally announced total of 100,000 homes facing problems because of Chinese drywall may be overstated. While consumer groups contest this, the news that the number may be less is a mix of good and bad. Though it would be nice to think that far less families are facing the plight of this imported wallboard, that the number might be overstated could mean that it is more of an uphill battle to prove the toxic problem.

The Herald's article notes

Now some are questioning if that figure -- and the scope of the drywall problem itself -- is exaggerated.

A spokesman for the lead federal agency investigating the drywall issue recently cautioned reporters about using the figure, saying it has not been substantiated.

"The best information we have to date is that, that number is overstated,'' said Scott Wolfson, of the U.S. Consumer Product Safety Commission, citing a relatively low number of drywall complaints lodged with the agency.

But others contend the estimate is valid, perhaps even low, and that the number of complaints reflects only a fraction of the issue's true scope.

"There's a lot of people still in denial or unaware of this stuff,'' said Thomas Martin, president of Americas Watchdog, a consumer-advocacy group based in Washington, D.C.

While facts will continue to come out as they become available, it is important that the discussion is continuing regarding Chinese drywall. The situation is difficult but over time everything will emerge. In the meantime it is important that those who suspect they have Chinese drywall to contact an attorney and building expert to find out their options.

Just a reminder that Louisiana Senator Julie Quinn's committee meeting in regards to Chinese drywall and insurance companies is scheduled for tomorrow. Senator Quinn is hosting the meeting to discuss the issue of Chinese drywall in Louisiana and the insurance implications. The meeting will be attended by Insurance Commissioner Jim Donelon and representatives of various insurance companies and is an opportunity for those with Chinese drywall in their homes to explain their situations to those involved in the decision making process.

Details are as follows

LOUISIANA STATE SENATE INSURANCE COMMITTEE MEETING DECEMBER 2, 2009 6PM ST. TAMMANY PARISH COUNCIL CHAMBERS 21490 KOOP DRIVE

Our firm's lead attorney on Chinese drywall cases, Jeffrey Berniard our firm is handling, will be in attendance at the meeting and willing to go over the legal options for anyone who thinks they might have the problematic wallboard installed in their homes. Anyone who has an interest in the matter or fears they might have Chinese drywall in their home is encouraged to come.