Insurance Dispute Lawyer Blog

Toxic chinese drywall that was installed in many Louisiana homes has been discovered to emit sulfur, methane, and other toxins. The drywall is thought to be responsible for homeowner's health problems and a variety of damage to household appliances. Just recently, a federal judge in New Orleans awarded several homeowners $2.6 million against Chinese drywall manufacturer Taishan Gypsum Co. However, collecting this judgment may prove difficult. If you considering litigation as an option to obtaining the money you need to repair the damage Chinese drywall has caused your home, you are not alone.

While Chinese Law Makes Collecting Judgments Against Toxic Drywall Manufacturer Difficult, there are Options for Homeowners

According to Gordon Gao , a partner in a Beijing firm, it is often very difficult to collect judgments against Chinese companies that were awarded to plaintiffs in US courts.

"'In general, collecting on a U.S. judgment [in China] is difficult if not impossible,' says Gordon Gao ... Chinese law, he explains, only permits the enforcement of foreign judgments through bilateral treaties. But China doesn't actually have any such treaties with other countries."

This means that US courts do not have the power to reach across our nation's boundaries and force Chinese companies to pay out the damages awarded to US plaintiffs in US courts. However, there are options for New Orleans homeowners hoping to collect from Chinese companies. It is possible that plaintiff's attorneys can try to have ships carrying Taishan Gypsum Co. products seized. Doing so would allow the courts to decide if the ships may be claimed for their value and sold in order for the plaintiffs to collect their judgments. The ships must be located in US waters at the time of seizure.

If You Installed Tainted Drywall In Your Home, You May Be Able to Sue the Manufacturer for Breach of Implied Warranty or Negligence

Even if you do not have a written warranty from the drywall manufacturer, you may still be able to establish a breach of the implied warranty of "Merchantability."

Implied Warranty of Merchantability

The Uniform Commercial Code provides that any sales contract that involves a merchant/seller implies a warranty of merchantability without the need for an express contractual agreement. However, in order for this theory to apply, a seller must not have disclaimed it in a written sales contract.

In order to be "merchantable" good must meet several requirements including that the goods must be fit for the ordinary purpose for which such goods are used. Therefore, if you have bought tainted drywall, you may have a case against the manufacturer under a theory of "Implied Warranty of Merchantability." The drywall you purchase should be "fit" for the purpose of installing in a building. Drywall that exposes occupants of the building to toxins would likely fail to meet this standard.

All the same, it is important to note that the Implied Warranty of Merchantability does not guarantee that the goods must be of the highest quality. Instead, the goods must be of a high enough quality to make them suitable for the purpose for which they were designed. In order to bring a lawsuit, the defect in the good must be a result of a manufacturing flaw, a design defect, or fail to give adequate warnings. Thus, if the toxins in the drywall originated due to an error or negligence on the part of the Chinese manufacturer, you may be able to show a breach of this implied warranty.

Negligence

Generally, a seller can be held liable for negligence if the seller's product is defective and can be reasonably expected to cause substantial harm to any foreseeable product users. In order to establish a claim for negligence, you must be able to show that the Chinese drywall seller owed a specific duty to you, that the seller breached that duty, that there is a causal connection between the sellers conduct and the injury, and that you suffered damage or injury from the breach.

Under products liability law, a seller has the duty to provide a reasonably safe product in design and manufacture. Thus, the sale of toxic drywall that must be removed from a home due to health concerns likely establishes a breach of this duty to provide a "reasonably safe product." In addition, if you establish that the defendant's sale of the defective drywall has caused you damage. Damage may include things such as negative health effects from exposure to the drywall's toxins, money expended to replace the drywall, and potentially costs associated with finding housing during drywall replacement.

Continue reading "Shreveport Homeowners with Chinese Drywall Have Options for Collecting Judgments" »

In a sign of progress for those homeowners who have found themselves buried under the burden of defective Chinese drywall installed in their home, recent court rulings have shown a lot of hope. The federal judge in charge of consolidating and creating a general premise for rulings involving the faulty imported wallboard, Judge Eldon Fallon, has found in favor of homeowners in a variety of locales. This is a marked improvement of where those who own affected property found themselves for the past years that the faulty material has been a problem and demonstrates that hope may be around the corner.

The Herald Tribune reports the ruling has yielded a quality judgment for the plaintiffs

A couple affected by the drywall - Tatum and Charlene Hernandez of Mandeville, La. - are entitled to $164,000, plus attorneys' fees and court costs.That money includes about $5,400 to pay the Hernandez family for damaged personal property and close to $20,000 to pay for somewhere to live while the repairs are made.

This ruling is progress for the homeowners and provides a roadmap for recovery that begins to approach the problems that the imported wallboard have provided. The article goes further to detail the ruling, stating

U.S. District Court Judge Eldon E. Fallon, who is overseeing the massive combined Chinese drywall litigation in New Orleans, ruled that:

A couple affected by the drywall - Tatum and Charlene Hernandez of Mandeville, La. - are entitled to $164,000, plus attorneys' fees and court costs. That money includes about $5,400 to pay the Hernandez family for damaged personal property and close to $20,000 to pay for somewhere to live while the repairs are made.

Their house is to be gutted down to the studs - replacing all drywall.

Ductwork, the entire electrical system, all copper and silver components and the heating-and-cooling system are to be replaced.

All damaged appliances and consumer electronics are to be replaced as well.

Fallon's decision on the Hernandez home, and his earlier findings on a Virginia case, may set a standard that could help thousands of other homeowners, including many in the Sarasota area and elsewhere in Florida.

This ruling seems to make a clear indication that defective property is the key element of this case and provides those affected a variety of assistance. That the ruling goes so far as to cover appliances and electronics means that the judgment covers almost everything that property owners could hope for in the matter.

What does not appear to be clear is the elements of personal damage and the effects the faulty wallboard has had on the health of those living in the homes. The basis of product defects is complicated and can be better understood through our sister blog's section detailing Product defect, located here. In general, product defects deal with three major issues: manufacturing defects, dealing with product imperfection occurring during the manufacturing process; design defects, dealing with product design; failure to warn, or marketing defects, deals with a failure to warn users of product problems or non-obvious dangers.

While Fallon holds a lot of control over the proceedings, the rulings will likely be appealed. What's important is that the trial, to this point, has indicated positive things for those wishing to prosecute the distributors and manufacturers that have brought Chinese drywall into the homes of many. An experienced attorney is essential when dealing with matters such as this and hiring the right one is crucial for getting the judgment you deserve.

Toxic Chinese drywall that was installed in many Orleans Parish homes has been discovered to emit sulfur, methane, and other toxins. The drywall is thought to be responsible for homeowner's health problems and damage to household appliances. If you have been forced from your home due to toxic Chinese drywall and are now suffering to repair the damage while balancing your mortgage costs and rent payments, you are not alone.

Three Senators Fighting to Obtain Mortgage Break for Chinese Drywall Victims
Just recently, three U.S. senators attempted to enter into negotiations with Fannie Mae and Freddie Mac in order to obtain 6 months of mortgage relief to homeowners fighting the damage of Chinese drywall in there homes. One of these senators was Mary Landrieu, a democrat from Louisiana. Landrieu was joined in this effort by Bill Nelson, a Florida senator. The senators state that the 6 month grace period will help "folks struggling to keep their heads above water" . The U.S. Consumer Products Safety Commission has receieved more than 3,000 allegations of toxic Chinese drywall. Just weeks ago, a similar plan was approved by Fannie Mae to help out Virginia home owners.

Louisiana Bill Addresses Victim's Concerns with Home Insurance Cancellations
On April 22, 2010, a proposal for a bill to help victims of Chinese drywall was introduced in the Louisiana Senate. The bill was introduced by Julie Quinn, and would bar home insurers from cancelling, refusing to renew, or increasing premiums or deductibles due to toxic Chinese drywall at a home. Quinn has received dozens of complaints from homeowners who say they are going to lose home insurance because they filed a claim related to the drywall. In addition, some homeowners are suffering added financial burdens from the drywall because they are afraid of reporting it to their insurer. See the full article by clicking here.

Ways to Help Lower Your Mortgage Payments in Response to added Expense of Chinese Drywall Damage

Temporary Interest Rate Reduction
If you don't have the option of waiting for Freddie Mac or Fannie Mae to provide you with mortgage relief, you still have options available to you. A temporary interest rate reduction may help you stay afloat long enough to avoid foreclosure. A temporary interest rate reduction can help individuals who are facinging financial problems that are likely temporary in nature, but who cannot provide full payments for a foreseeable time period. A temporary interest rate reduction can reduce your interest rates to market rate, or some cases, below market rate. Fannie Mae, may be willing to lower the rate to 3% in some instances.

Loan Modification of Securitized Loans & Special Plans
Most mortgage securities are issued by or guaranteed by Ginnie Mae, Fannie Mae, or Freddie Mac. Both Fannie Mae and Freddie Mac's servicing guidelines permit loan modifications.

Treasury Secretary Paulson, along with the mortgage industry, created "Hope Now," a voluntary program that helps consumers who have securitized subprime adjustable rate mortgages to avoid foreclosure by temporarily freezing their interest rate at the initial level. This plan has a clear procedure for processing loan modifications for those people who are up-to-date on their loan payments but are in danger of defaulting after the initial interest rate resets. These homeowners may be given a limited modification under which their interest rate will remain the same for a give period, often 5 years.

Treasury Secretary Paulson also implemented "Project Lifeline" for more dire cases. This program gives eligible participants a 30 day delay in foreclosure proceedings. In order to qualify, you must be at least 90 days late on payment and no more than 30 days from a scheduled foreclosure sale.

Addressing Orleans Parish Homeowner Credit Concerns
If you are deciding what path to take in regards to your toxic drywall problem and are concerned about impacting your credit, this information may help you. While you may not want a foreclosure avoidance plan of any type on your credit, these plans have been shown to be better than having a complete forclosure on your credit history. A foreclosure avoidance plan at least shows that you are attempting to make an effort to repay your mortgage.

Continue reading "Financial Assistance Emerges in Chinese Drywall Disaster" »

In a sign that indicates positive news for those looking to the stock market in the wake of the Chinese drywall problem, Travelers Insurance has shown limited exposure to the faulty import market. According to the Nasdaq news line, the company has only seen a little over 50 claims tied to the toxic wallboard.

The site reports

Travelers Cos. (TRV), the insurer of businesses, homes and cars, said Friday its customers have reported 52 claims tied to faulty drywall manufactured in China.

The insurer said it has no direct liability exposure to the companies that made the drywall, and no general liability policies on 37 of the 38 major public residential contractors in the U.S. Both the makers of the drywall and the contractors have faced a flood of lawsuits over the defective product. The 52 claims to date aren't considered significant, Travelers said in a slideshow prepared for a conference call with analysts and investors.

While this might not seem too significant for homeowners, the fact that such a major company is not facing problems means less pressure on the government by those with big pockets on the matter. While one would believe the government would work for the greater interest, the less money being spent to face the issue is better. What's more, this would also imply that less people have been harmed. By this, any less suffering is better.

The complexities in Chinese drywall are numerous and vary widely. As seen in our section dedicated to the matter, a variety of defenses are being utilized by the distributors and manufacturers of the faulty product. It is important for those affected to contact experts in a variety of fields, be it medical or legal, in order to move forward in what is becoming quite a confusing and difficult issue.

Should you see damage to a variety of appliances or problems with the health of any residents in your home, do not wait in contacting specialists in the matter. Our attorneys would happily discuss your rights with you while helping you handle any matters dealing with this issue. Time is of the essence in matters not only dealing with the health of those who might be living in a home with Chinese drywall installed but also because of time limits that exist with litigation.

In what appears to be a promising development for those who have found themselves the victim of Chinese drywall installed in their home, the government has taken steps to insure that insurers will back their policy holders. As the faulty imported wallboard has been a serious problem for many, insurance companies have begun dropping those with policies to limit their coverage requirements in the event of a suit or claim. Doing so has left many concerned on what will develop if the providers are left to their own interests.

By dropping those who may have Chinese drywall in their homes, insurance companies limit their liability in a way that mirrors their approach to storm damage and the like. In the wake of Hurricane Katrina, many insurance companies claimed that, instead of wind damage, the damage incurred by homes was the result of flood damage. The problem with this was that far too many homeowners possessed wind coverage but not flood coverage and thus were facing little to no payment from their insurance company. This is the same plight faced by those whose polices have been threatened by their providers in the wake of this drywall matter.

The Associated Press reports

A prohibition against insurance companies dropping coverage for homes or businesses that contain corrosive, Chinese-made drywall advanced Wednesday in the Louisiana Senate.

The bill by Sen. Julie Quinn, R-Metairie, would bar property insurers from canceling, refusing to renew, or increasing premiums or deductibles because of Chinese drywall at a property.

People who rebuilt their south Louisiana homes after Hurricane Katrina claim the imported drywall emits sulfur, methane and other chemical compounds that have ruined homes and appliances and harmed residents' health. The contaminated wallboard is costly to replace.

Quinn said she's received dozens of complaints from homeowners who say they will lose their insurance because they filed a claim related to Chinese drywall or who are afraid to report their drywall problems to insurers for fear they will be dropped by the company. She didn't, however, have specific numbers of homeowners who have lost coverage or faced a threat that they will lose coverage.

The acts of government officials to protect homeowners in this matter is important. The cooperation that is going on right now seems to support developments that will help those concerned and affected by the problematic materials that make up their walls and the structure of their homes. The problem with Chinese drywall is it is not only a faulty construction material but also taints appliances, not to mention causing health defects.

Product defect is an intricate issue that requires careful analysis not only for the judges involved but also the attorneys prosecuting the matter. While those affected by the toxic import might feel tying the problems incurred by its use is obvious, the courts have a series of procedures that require careful analysis and expert testimony to successfully win the case.

Should you suspect that you have Chinese drywall in your home, it is important for you to contact a legal expert as soon as you have contacted your builder or contractor to inquire about the materials used. A medical expert may be required as well given the health problems that have been described by those with the faulty wallboard in their home. Contacting an attorney will allow you the freedom to prosecute the matter while getting experts to inspect your residence and find all of the problems that the Chinese drywall may have caused.

For more information on product defects, click here or contact our offices as soon as you can. To read more about Chinese drywall, click here.

For those Louisiana residents, whether you live in Lake Charles, Shreveport, Baton Rouge, New Orleans, Kentwood or any other of the great cities across this state, looking for more information on their possible personal injury claim, check out our blog dedicated to these legal matters:

Louisiana Personal Injury Blog

This blog discusses the legal issues relating to Admiralty/Maritime law, Animal/Dog Bites, Car Accidents, Chemical/Industrial Spills, the intricacies of Expert Testimony, Insurance Disputes, employee rights under the Jones Act, Legal Duty, Civil Lawsuits, Criminal prosecution, Medical Malpractice, Mesothelioma/Asbestos, Motorcycle Injury, Negligence, Offshore Accidents, Product Defects, Chinese Drywall, Strict Liability, Workers' Compensation and Wrongful Death. All of these issues are crucial to citizens rights and residents of Louisiana.

To better understand the complexity of the law, contacting an attorney is crucial. However, to get a better understanding of the general issues, we hope this resource is invaluable. Feel free to browse this legal resource dealing with a variety of harms or damages you may have suffered in order to understand how your issue matches up with the law.

If you would like to speak with an attorney, check out our contact information. We represent Louisiana residents across the state and would be happy to discuss with you how to move forward with your unfortunate circumstances.

The enormous need to rebuild houses after Hurricane Katrina and the end of the housing boom caused American homebuilders and companies to search for cheaper alternative materials to build houses with. The simplest and cheapest solution to this problem for these homeowners was to purchase imported drywall from China. That plan seemed great at the time, until homeowners complained about headaches and respiratory problems along with corroded electrical wiring, appliance outages, rotting walls and damage to personal belongings. An estimated 4,000 to 7,000 Louisiana households have been affected by this problem; however, only 800 Louisiana residents have reported these problems to the Louisiana Recovery Authority. Overall, 3,700 individuals across the nation have reported problems to the CPSC. Many residents are facing large medical and rebuilding fees and are not sure what to do.

Chinese drywall contains significantly higher levels of strontium and sulfur compared to most drywall manufactured in America. It was commonly used as a cheap substitute to American drywall for builders looking to cut costs and expenses. The corrosive problems that have been associated with Chinese drywall are fairly new. American researchers have been conducting several scientific studies for the past year to try and isolate the problem, and finally released the results of that study on April 2nd for Congressional officials and for civil litigation purposes. However, the problems for homeowners who have Chinese drywall in their house go much deeper than that. Those that have filed insurance claims have almost all been denied based on policy exclusions for latent defects or pollution in materials. Other homeowners who have chosen to go the legal route have been told that the 1996 tort reform legislation will likely prevent them from making a full financial recovery because the manufacturers of the defective goods are overseas.

Before 1996, a consumer in Louisiana could pursue a claim against a company and receive full compensation of damage from that company, even if the company was only liable for a small portion of the consumer's injuries. Applying the old Louisiana law to the situation here, a homeowner who was affected by the Chinese drywall situation would sue the party that installed their drywall. That party, in turn, would then sue companies up the chain until the biggest pockets were reached.

Then, in 1996 the Louisiana Legislature passed one of the nation's most aggressive tort reform acts in an attempt to improve Louisiana's business climate as promised by newly elected Governor Mike Foster. The new system of tort reform was a very pro-defendant, pro-corporate change in the law and only forced defendants to pay damages for the portion of fault that was assigned to them. That is exactly where the problem lies with the current Chinese drywall fiasco.

Under the law today, if a homeowner decides to sue the builder of his/her house who used the defective material and a court determines that the manufacturers are responsible for 90 percent, the American companies are only liable to pay 10 percent of the damages award. The other 90 percent would have to come from the Chinese company. However, American courts do not have the jurisdiction to force those companies to attend trial or pay damages allotted to them. Thus, you may ask, what are homeowners in Louisiana and across the nation to do?

Some lawyers have decided to pursue claims against the homebuilders who have chosen to substitute American drywall for the cheaper substitute through the Louisiana New Home Warranty Act; others have decided to file suits against the suppliers who handled the drywall, hoping to get a high percentage of contributory damages awarded against the supplier and not the manufacturer.

The best chance for victims in Louisiana to be compensated may be under a state law that allows victims to take "direct action" against the insurers of these companies that harmed them. This appears to be the only legal way homeowners can force the insurers to take some responsibility, and might even cause these companies to seek damages up the line like the pre-1996 days. This tactic turned out great for New Orleans attorneys in 1997 when they pursued claims against insurers when the Chinese-owned Brightfield ship slammed into the Riverwalk.

Currently, Congress is considering a law that would require foreign companies to participate in litigation if they sell products in the United States. That law is pending still and is not something Louisiana residents can rely on for immediate assistance and relief. The fact that these manufacturers are outside the realm of U.S. product liability law poses a minor problem. However, attorneys for some homeowners in Louisiana and around the nation are finally breaking through and have found some success.

This past Friday, April 9th, U.S. District Court Judge Eldon Fallon of the Eastern District of Louisiana ordered a Chinese manufacturer to pay seven Virginia families a total of $2.6 million for damages to their homes attributed to drywall problems. This was the first judicial ruling on a Chinese drywall case and is very important for future litigation because the Judge ordered that homeowners be made completely whole for the damages resulting from the defective drywall. Judge Fallon specifically stated that this included repairs to wiring, heating and air conditioning, floors, closets, kitchen cabinets and other fixtures ruined by the drywall.

This decision is great news to thousands of homeowners around the country, as it offers them some peace of mind while they await help from the CPSC, Congress, and other creative solutions from their attorneys. Should you believe you have Chinese drywall in your home, contact an attorney immediately.

The first bellwether case for Chinese drywall litigation began yesterday. The case is important because of the potential precedent for culpability it will establish for Chinese manufacturers and importers over the faulty wallboard brought into the country in the wake of a variety of hurricanes and home development. While more than 2,000 families have claims pending on this issue, the effects may even be more far-reaching.

News Inferno reports

The first bellwether trial names Knauf Gips and Knauf Plasterboard Tianjin Co. as lead defendants. The lawsuit was filed on behalf of Tatum and Charlene Hernandez of Mandeville, Louisiana. The case is being heard by Judge Fallon without a jury.

The Hernandez family claims that their 1,688-square-foot home was ruined by 180 boards of defective Chinese drywall. Since moving into the home in 2006, members of the family have suffered from headaches and respiratory problems. Their insurer has denied their homeowners’ claim and the builder hasn’t offered any help. The family remains in the home because they can’t afford to pay both rent and mortgage.

While defendant Knauf acknowledges that its drywall was defective, the company disputes the amount of money the Hernandez family is seeking for remediation. According to a report in Business Week, all parties in the suit agree on the need for removing and replacing drywall, moldings, carpets, a granite countertop and electrical switches and outlets. Other claims, such as wiring, appliances and personal property and the cost of repairs are in dispute.

There is not a lot of more information on this item that has not been covered by our blog in the Chinese Drywall section. Until Judge Fallon determines the scope and manner in which these companies will handle the damage caused by this toxic wallboard, attorneys on both sides of this issue will look intently on this issue.

This blog will be updated as more information becomes available.

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.

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.

Promising news emerged at the end of 2009 that provides some hope for those homeowners with Chinese drywall in 2010. The United States government, in an effort to provide local assistance for those who have unfortunately been struck with the toxic wallboard, allows for funding to be used to help with the removal and replacement of the drywall. This to say the least, is extremely helpful and an important development on this issue.

The Times-Picayune reports

The U.S. Department of Housing and Urban Development cleared the way Tuesday for the Louisiana Recovery Authority and local governments to use Community Development Block Grant funds to help people with toxic drywall in their homes.

"That is very big news," said Christina Stephens, spokeswoman for the Recovery Authority.

This fall, the Louisiana Recovery Authority set aside $5 million to help Road Home applicants with problem drywall. Many homes that were built or repaired after Hurricane Katrina were constructed with wallboard that emits sulfuric gases that many people believe are making them sick and are corroding metal fixtures and appliances in homes. Insurers so far have been rejecting claims for damage, leaving homeowners without a source of money to fix the damage.

[The] announcement takes a major step toward making funds available to help drywall victims, but money cannot be disbursed until the federal government comes up with protocols on how to test for drywall and agrees on the proper way to remediate damage. Those decisions are expected to be made early [2010].

As the article says, these funding options will be emerging early this year and begin to provide financial relief for those who qualify. Funding may be an issue, as it often is with these matters, but progress is important. Reporting the toxic wallboard in your home may be a requirement of funding. To do so, here is some information:

Reporting the problem to the Recovery Authority will help the state document how big the problem is and make the case for federal assistance. Anyone who hasn't yet registered with the Recovery Authority should complete a form online at lra.louisiana.gov/drywallform or call the state's contaminated drywall hotline at 1.866.684.1713.

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.