A Chinese drywall town hall meeting was held in Newport News, VA last night with representatives from the CPSC.

According to Wavy.com, representative Jay Howell went over a the steps that the Consumer Product Safety Commission has taken over the last year in testing the defective drywall, as well as drafting remediation guidelines.

There were questions concerning water safety, health problems, and  foreclosure but there seemed to be no answers.

“There were no representatives from the Health Department or the Centers for Disease Control in the meeting. Del. Glenn Oder (R-Newport News) who co-hosted the event said he would reach out to those agencies for future meetings.”

Homeowners were not the only ones present last night.  Renters who signed leases in homes who have discovered that they have defective Chinese drywall also attended the meeting.  There concern seemed to be focused on getting out of the situation without ruining their credit.

In what is being thought of by many legal experts as a “small victory” for insurers, the ruling last week is sparking much conversation.  (View the source article here: “Drywall damage not covered for Va. Beach man, from The Virginian-Pilot, provided by hamptonroads.com)

U.S. District Judge, Robert G. Doumar ruled last week that the policy which existed between a homeowner and TravCo. Insurance Company does not cover damages caused by defective Chinese drywall.  The problematic issue for the homeowner in the case was reportedly specific exclusions that were in the policy.  While the case might be disheartening upon first glance for homeowners across the country, this area of law is in flux, as courts are coming down on both sides regarding this particular issue.

The homeowner in this case requested his insurance company fix his Chinese drywall problem.  His appliances were malfunctioning and other electronics were corroding and ceasing to work.  According to the Pilot, legal experts believe the decision is binding only on this specific homeowner’s situation and policy.  There is the chance that other courts in other jurisdictions may very well rule differently on insurance policies and their relation to Chinese drywall damage.

The insurance companies facing mounting claimants pointing to dangerous drywall are paying close attention to how case law develops.  While insurance companies involved in litigation will presumptively utilize this case to their advantage, other cases exist where the judge has sided with homeowners.  For example, a recent case in Louisiana ruled that the homeowner’s policy did have to cover the damages his home sustained resulting from Chinese drywall, because the exclusions in the policy were not meant to disallow persons from filing claims regarding products that cause or “emit” pollution.   Compare this with the case relied upon in the instant case by Judge Doumar – a case allowing avoidance of liability because the contaminants in a water supply came from another source – and it seems to be apparent that that case involved a much less scrupulous contaminant.  Chinese drywall, unlike water, would enable the maker, distributor, builder, even possibly insurer to be more likely to know of the defect.  In addition, defective drywall causes harm by its emission; invisible particles disperse through the air, whereas contaminated water only produces its effects once “used” voluntarily.

Regarding the uncertainty of law in this area, the Virginian-Pilot noted how Judge Doumar expressed the ambiguities: “The judge acknowledged that the exclusions used by the insurer to deny coverage had been the subject of numerous court cases and that different courts in different states had reached different conclusions.” (click here for source article).

Norfolk attorney Richard J. Serpe represented the homeowner in this case and plans to appeal.  He told the Pilot that “”The language of these policies is so confusing that you’re going to have a dozen judges going off in different directions,” Serpe said. “Under Virginia law, an ambiguity goes in favor of the policy holder.”

Taishan Gypsum Co. Ltd, the Chinese drywall manufacturer that was ordered to pay $2.6 Million in damages to seven Virginia homeowners, has for the first time yesterday responded to the lawsuit with an appeal.

In April, U.S. District Judge Eldon Fallon, who is overseeing the Chinese drywall multi-district litigation process in the Eastern District of Louisiana, awarded $2,609,129.99 for seven families affected by tainted drywallmanufactured by the Chinese-controlled company – Taishan.  If you missed that article, view it here.

“Because Taishan never responded to lawsuits, Fallon entered a default judgement against the company last fall.  The company’s appeal and notice of appearance this week renewed hope that the company might eventually pay damages to local homeowners” (Virginian-Pilot). 

Recently the Consumer Product Safety Commission (CPSC) Drywall Information Center released a list of drywall manufacturers whose drywall produced high levels of hydrogen sulfide during testing. View the list here.

Judge Fallon awarded these damages based upon the relatively expensive and wide scope of remediating these homes.

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.

The recent ruling by Judge Eldon Fallon, who is overseeing the Chinese drywall multi-district litigation process in the Eastern District of Louisiana, awarded $2,609,129.99 for seven families affected by tainted drywall manufactured by the Chinese-controlled company – Taishan.  If you missed that article, view it here.   The lengthy issuance by Judge Fallon outlined how the amount of damages was derived.

Judge Fallon awarded damages based upon the relatively expensive and wide scope of remediation.  The process outlined below, as reported by chinesedrywall.com, details the components that must be removed, the cleansing process, and the final safety certification inspection.

-          Removal and Replacement of:

• drywall in the home;
• entire HVAC unit;
• Insulation;
• appliances (not all, but most…including refrigerators);
• electrical wiring;
• electronics including TV’s and computers
• copper pipes
• carpeting
• vinyl flooring
• hardwood flooring
• tile flooring (if can not be protected during)
• cabinets, crown molding, baseboards, countertops, trimming
• fixtures in the bathroom

-          After all the above components and drywall have been removed, the property must be cleansed:

• A device known as a “HEPA” vacuum must be used to clean the home, it must be power washed, or “wet-wiped.”
• The home must be vacated and allowed to “air out” for a period of around 2 to 4 weeks (15-30 days).

-          Once all the potentially affected components have been removed and the house has been aired out and cleansed, the property is subject to certification.  An engineering company must certify the home is habitable.

An upcoming case, Hernandez v. Knauf, will also inquire into the issue of property damages that Chinese drywall has allegedly caused to the plaintiff in that case.  These initial cases are vital to the development of how the courts will view Chinese drywall victims.

The multidistrict litigation in New Orleans has yielded a major development.  The initial trial’s aim was to determine the scope and nature of remediation for homeowners with defective drywall.

Judge Eldon Fallon awarded damages of $2.6 million Thursday to the owners of seven homes in Virginia, reported the Herald Tribune Friday.

It really cannot be emphasized enough how Judge Fallon’s decision may affect homeowners across the country.  It is no secret that thousands of homeowners in numerous states have reported to federal authorities the nature and symptoms of tainted drywall.

Judge Fallon is not presently hearing cases about health claims (as opposed to property damages, i.e., corrosion of appliances).  The Herald Tribune pointed out that he did comment on the possible health implications of tainted drywall – he stated, “[the tainted drywall is] . . . . clearly irritating and harmful to residents.”

This award of damages for the Virginia plaintiffs, while seemingly a large amount of money, is a small drop in the bucket when compared to all of the homeowners across the nations who are still seeking a remedy.

It only takes a bit of simple math to realize and appreciate the damage and devastation to homes that tainted drywall has inflicted in a monetary context; if almost three million dollars is the necessary remedy for seven homes, then the logical conclusion that follows is that since there are thousands of potential homes affected, then the nation-wide dollar damages must be enormous.   This leads to a concern that the trials have raised – how will the entities responsible pay for future judgments?  The Herald Tribune reported that Judge Fallon and some attorneys have suggested that if a foreign entity is unwilling to compensate those affected, one solution may be to seize U.S. assets as well as ships.

A Chinese drywall ruling was made on Thursday, April 8, by U.S. District Judge Eldon E. Fallon in New Orleans, awarding seven Virginia homeowners $2.6 million in damages. 

The seven Virginia homeowners were chosen as representatives of homes affected by the toxic Chinese drywall across the country- one Virginia Beach family, two in Newport News, and four in Williamsburg.

The Virginian Pilot reports that his ruling stated all of the drywall within the homes must be removed, including materials that were corroded due to the Chinese drywall, as well as anything damaged during the removal process.

The damages awarded also include costs to relocate the families while the remediation work is in process, and other expenses such as bankruptcy or foreclosure caused by the drywall.  Judge Fallon also awarded damages for the loss of use of the properties, according to the Virginian Pilot.

Attorney Richard Serpe of Norfolk,Virginia who represented these seven homeowners states, “The judge went right down the line in adopting the scope of remediation and loss of property.  We think it was a sober and fair decision.” 

The ruling was against the Chinese manufacturer Taishan Gypsum Co. Ltd., who did not respond to the lawsuit forcing Judge Fallon to enter into a default judgement.  Unfortunately, this ruling means little, as far as compensation, if Taishan ignores the judgement. 

“Serpe plans to ask Fallon for a judgement against Taishan for more than 80 other clients in Hampton Roads whose properties were built with Chinese-made drywall.  Serpe is also representing local homeowners in Norfolk Circuit Court cases against the construction supplier, Norfolk-based Venture Supply, Inc., and against multiple builders and subcontractors.”

The New York Times: Judge Awards Families $2.6M Over Chinese Drywall
WSJ: Judge Awards Families $2.6 Million in Chinese Drywall Case

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Homeowners target ‘toxic’ Chinese drywall

“After millions of sheets of Chinese drywall were imported into the U.S. after mass destruction from the 2005 hurricane season caused a shortage of U.S materials, a federal lawsuit is now demanding that a Chinese manufacturer pay damages for what they say were toxic materials. NBC’s Mark Potter reports” 

It goes without saying that Chinese drywall has destroyed thousands of homes from Virginia to Florida to Louisiana and many places in between. But if you have not been personally hit by this disaster you may not realize just how much of an effect it has on homeowners.

WDBJ7.com recently ran a story on this problem: Chinese drywall destroying homes and lives in Virginia. The title says it all. Not only is Chinese drywall destroying homes, but it is taking down many people in the process.

To this point, there are hundreds of families in Virginia alone who have been chased out of their home due to Chinese drywall; most of them are between Williamsburg and Virginia Beach.

Recently, Governor Bob McDonnell appointed a task force that will attempt to work with the federal government to help the many Virginians who have been affected.

Newport News Delegate Glenn Oder sums up this story by saying, “It’s not just the sheetrock in their home. It’s not just the heat and ventilation systems. They’ve lost their furniture. They’ve lost their appliances. They’ve lost their computers. They’ve lost their clothes. They are homeless and nobody has stepped up to help them yet.”

The Consumer Product Safety Commission (CPSC) has seen complaints flow in surrounding toxic Chinese drywall from numerous states and even the District of Columbia; but some states specifically have been hit the harder than others.

WDBJ7 News recently reported on the devastation Chinese drywall has caused homeowners in Virginia.  Other states suffering more-so than others include Louisiana, Florida, and Alabama among others.

According to WDBJ7, more than 100 families in eastern Virginia allege that Chinese drywall is causing them to “[live] a nightmare…”

One homeowner that was interviewed by the above news source elaborated on the symptoms she first noticed.  She mentioned that as soon as her family vacated the Chinese drywall laden home, her young child immediately ceased to experience bloody noses.  While living at the residence, the young child suffered almost constant nosebleeds.

The primary area that seems affected the most is in southeastern Virginia.  Specifically, there are about 150 families who have alleged defective drywall is ruining the atmosphere within their homes.  Williamsburg to Virginia Beach seems to be the main region that has been sourcing complaints.

Some Virginia families were plaintiffs in a multi-district litigation process held in the Eastern District of New Orleans.  In that trial, Judge Eldon Fallon presiding, and set to determine what the costs will be to fix these affected homes.  The trial is important and will have far reaching impacts upon other harmed families, looking to the trial for guidance and how the courts will handle their cases.  The case resulted in a finding that the proper way to fix a home affected is to “gut it” – this entails removing all components possibly contaminated.