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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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

As states such as Florida and Virginia have been the source of enormous numbers of complaints from homeowners who are in apprehension regarding defective drywall fears, the Consumer Product Safety Commission is moving forward with plans to investigate sites in China, on-site.

Perhaps the efforts of proponents of diligent inquiry into Chinese drywall woes, like Senator Bill Nelson below, have paid off in some respects.

A recently developing story as reported by the news-press.com sheds light on a possible solution for some homeowners.  New York based company Sabre Technical Services held a press conference Monday at Bell Tower Park – the location where it tested its systems for defective drywall removal this summer.  The process entailed the utilization of chlorine dioxide gas, with the aim of eradicating air-borne sulfuric compounds.  Chief Technology Officer for Sabre commented that chlorine gas isn’t harmful to household structures or appliances.

Other methods previously planned have included the use of vacuums to remove particles, sometimes costing upwards of $100,000.  The price expected for Sabre’s methods is reported to vary depending upon circumstances, but will likely range from $15-20 per square foot.  More fine-tuning of the overall process is likelly needed before Sabre can implement the method, as some builders have expressed concern that a warranty agreement gauranting the work must be present before commitments can be made.

New York Times: The Drywall of China