In a pivotal development,  a Chinese manufacturer has settled its first suit – Knauf Plasterboard Tianjin Co. settled just days ago, on Friday.  Read the source article, from CBS, here.

The settlement was reached with a homebuilder in Atlanta, Beazer Homes USA, inc.  The settlement was reportedly first made known from an email sent by the law firm representing Knauf.  The article from CBS states that more information will be released to the public in coming days.

Knauf is facing numerous lawsuits from homeowners that claim the drywall installed within their home is defective.  Allegedly, the drywall causes corrosion, foul odors, and other issues including potentially health-related symptoms.  But Knauf is not the only company that has faced allegations of dealing in defective drywall.  Other businesses have been scrutinized (and will continue to be so), such as importers, exporters, builders, and so on.  The magnitude of the issue, monetarily speaking, is enormous.  The potential devastation to an already thrashed housing market is a scary thought.

Thechinesedrywalllawyer.com has been covering the multidistrict litigation taking place in New Orleans, as well as developments as they have become available.  One of the primary federal agencies addressing the defective drywall issue is the Consumer Product Safety Commission, which has received over 3,000 complaints to date.

Thus far, plaintiffs have been relatively successful in court. Judge Eldon Fallon ruled that Knauf must pay damages just over $160,000 to one family in Louisiana.  In addition, the same court held that seven Virginia homeowners were entitled to a combined total of over $2.6 million.

According to CBS, the email from Knauf lawyer included the statement, “the settlement with Beazer is part of [Knauf's] effort to get this issue behind them and move forward.”  The settlement shows at least some willingness to correct problems, which can provide at least some hope that other Chinese manufacturers will cooperate in future proceedings.

AL.com recently reported that more than 400 homes in the metro Birmingham area are affected by Chinese drywall. This has led to a large number of lawsuits, as well as a federal consumer products probe. As you can see, Alabama is having just as many Chinese drywall problems as other southern states including Florida and Louisiana.

Although Alabama has not been seen as one of the hardest hit areas, it appears that this trend may be changing.

At this time, no builders in the area have said that Chinese drywall has been found in their homes. Of course, this is bound to change in the near future. After all, somebody had to build the homes, right? It is safe to say that home builders in the area are keeping a close watch on this ever developing issue, as well as the many lawsuits that are being filed.

Stay tuned for more information on Alabama Chinese drywall, as well as how the story in Birmingham unfolds.

After months of scientific testing, the Consumer Product Safety Commission (CPSC) released the results of its investigation Thursday.  The results: federal investigators found higher than normal levels of sulfur and strontium in Chinese drywall samples.  As a caveat, the report did not conclusively link the health problems and reported damages that thousands of U.S. homeowners have reported to the agency with the drywall directly.  Instead of an outright assertion, the CPSC said additional testing was needed and that a new report should be released at some point in November.

Strontium and sulfur have been known to cause health problems though in other contexts.  It seems the CPSC seeks to have definitive test results before releasing a report directly connecting the drywall with health concerns.  Unfortunately, this report which lacked the nexus homeowners were hoping for, has Hampton Roads residents on pins and needles.  One couple reported to WAVY.com that they were essentially using their home as a “storage unit” because of the health problems and sulfur-like odor.

The family’s attorney, Richard J. Serpe (who is also representing other homeowners in a class action suit)  told WAVY.com that he doubted the CPSC will return new reports in several weeks.  He seemed to highlight the sense of urgency of the situation, given the fact that health concerns are implicated.  He said, “When Chinese drywall [and other] toxic substances get into your body, what does it mean?  [Homeowners] can’t [afford] to wait for the years for scientists to figure . . . out [the nexus,] we need to get to it now.”  Not only are homeowners facing potential health concerns, but the presence of Chinese drywall has imposed a dire financial strain on families who have had to vacate their homes, continue to pay the mortgage, and seek refuge in a temporary rental home.

The couple who spoke with WAVY.com is not giving up hope that the scientists will turn around results quickly, and that the situation will be ultimately resolved.  One homeowner, a pastor, told WAVY, “We’re people of faith and that matters for us…what was [released by the CPSC Thursday] was [an acknowledgement] that there is a terribly serious problem that is affecting homeowners in 30 states.”

Homeowners have reported almost 2,000 complaints according to the CPSC, and chairwoman Inez Tenenbaum has stated that the agency is working with the Department of Homeland Security to halt imports of more drywall from China.  Congressional leaders have also taken note of the situation, by seeking to help homeowners in proposing low interest loans.

CPSC October 29 Status Update

The America’s Watchdog group is currently investigating the corrosion of air-conditioning coils, specifically appealing to residents living in Florida since 2002.  The Group noted, “air conditioning coils are supposed to last for 15 years, yet they fail in Florida homes with toxic Chinese drywall once every two years, once a year, or even once every six months…If a homeowner in Florida, lives in a home with toxic Chinese drywall, we want you to call us if you have lost more than two air conditioning coils.”

The group has directed consumers to file complaints at their site, www.chinesedrywallcomplaintcenter.com

The Chinese Drywall Complaint Center has stated that it does not believe major home builders or air conditioning repair servicemen were not on notice of the problems associated with Chinese drywall, dating back to 2004.  The group has also said that due to the health issues widely reported, it is urgent that not just residents – but also builders and inspectors contact the group to report complaints.

The Group has manifested a desire to view homeowner warranty paperwork – specifically if it involves air conditioning coil, electrical, or health issues.  The Chinese Drywall Complaint Center is NOT solely interested in fielding complaints from Florida residents.  They also are “just as interested” in hearing and talking with residents in Virginia, Alabama, Louisiana, Mississippi, and Texas.

The Chinese Drywall Complaint Center has issued a release to healthcare providers, stating that they should stop treating victims of exposure to drywall with flu or cold remedies.  Rather, patients should have tests for sulfide blood levels and be treated accordingly

In a pre-trial hearing in New Orleans, United States District Judge Eldon Fallon ruled against Chinese drywall manufacturer, Taishan Gypsum Co. Ltd., because the company failed to respond to a suit filed by an Alabama homebuilder.

Attorney Ervin Gonzalez commented, “The bottom line is: If you want to do business in the U.S., you have to hold companies accountable. If they’re not willing to appear in a court of the U.S., you shouldn’t be able to do business here.” Ervin Gonzalez is the co-chairman of the trial committee for the MDL panel.

While this may not sound like a big deal, it is an early win for the many homebuilders and homeowners that have been affected by this problem.

What does this mean? Well, for right now the company does not have the ability to defend itself in court. Obviously, this puts the homebuilder in good position to win the case and hopefully receive compensation for all of the troubles that have been caused by this defective material.

At this time, more than 100 homeowners have filed suit against Chinese drywall manufacturers. All of these suits have been brought together to form one “master case” of which Judge Fallon is presiding.

So just how much defective drywall did Taishan Gypsum Co. Ltd. import to the United States? Records show that as much as 7.5 million pounds made its way into the US, through Florida and New York, between the years of 2006 and 2007.

For more information on this news story, as well as other important details check out this story: Judge Rules against Chinese drywall maker.

The U.S. Consumer Product Safety Commission (CPSC) has issued a press release that provides some basic goals of the current investigations pending, with regard to imported Chinese drywall.  Other agencies taking part in the drywall inquiry include the U.S. Environmental Protection Agency, the Agency for Toxic Substances and Disease Registry, the U.S. Department of Housing and Urban Affairs, and the Centers for Disease Control and Prevention.  The press release expresses that the primary focus is upon protecting the health of families living in potentially affected homes.

While the aforementioned agencies are all taking part in the investigation, the CPSC is leading the efforts to identify any possible health risks.  The agency has stated that the investigation will yield data that will then need to be assessed intensely, as the conclusions drawn from the process are likely to have broad implications.

The process, while far from simple, has fundamental aims – to measure the levels of gases that may be emitted from the drywall.  One example of the investigation in progress is the EPA’s involvement in performing air sampling and home monitoring in Louisiana and Florida.  The CPSC is using 50 homes as a test population in Virginia, Alabama, Mississippi, Louisiana, and Florida, to gain samples from a broad array of possible sources.

Homeowners who wish to obtain private inspections may do so, to gain the peace of mind associated with knowing the home is safe to reside in.  While many inspectors exist, residents of Virginia Beach may want to consider this source as a possible starting point.  Additionally, obtaining the advice of an experienced attorney can help homeowners determine the best course of action.

The Consumer Products Safety Commission has received more than 800 Chinese drywall complaints. This may not seem like a big number, but it is growing by the day and causing more problems than most people realize. At this time, problems related to Chinese drywall have popped up in 23 states as well as the District of Columbia. It is only a matter of time until more states are added to this group.

Most recently, homeowners in Alabama have been complaining about Chinese drywall problems. The largest number of cases are coming from those in the cities of Birmingham and Mobile. With its close proximity to Florida, a state that has been severely affected, it was only a matter of time until Alabama residents began to realize that they are victims of this serious issue.

Most of the homes in Alabama affected by Chinese drywall were built in 2006 and 2007. This is when new homes were being built at a very fast pace. One of the reasons for this torrid pace in the south was to rebuild after damage from hurricanes. Unfortunately, construction companies decided to use Chinese drywall as a way of keeping up with demand. This may not have been a problem at the time, but has turned into a big issue.

Between the years of 2004 and 2008 it is thought that more than 500 million pounds of Chinese drywall was imported into the United States. A report by the Associated Press estimates that this much drywall could build roughly 100,000 homes. These numbers alone show you that more Chinese drywall cases are bound to pop up in the near future.