The Miami Herald reported on an issue that is causing some in Floridians to face dreadful financial difficulties: the Chinese drywall problem is hurting many in the midst of the poor economic times.

The pressure is mounting on Florida Governor Charlie Crist, who has at least addressed the possibility of declaring a state of emergency due to the Chinese drywall issue.  See this previous article here, for a description of that situation.  The article explains the Governor’s recent communication with citizens in dire straights. “Crist took a big step forward when he addressed a group of protestors and said that he would look into declaring a state of emergency to deal with this problem.”

Particularly, homeowners associations are finding themselves having to cling to hopes for legislation aimed at helping their situations.  Bankruptcy has become a common and unfortunate necessity for far too many Americans.  Luckily, there is actually quite a bit of legislation on the drawing boards of Congress, some more realistic than others.

The proposals differ in some respects, but all aim to help cash strapped homeowners, homeowners associations, and condominium owners.  Some legislative suggestions have that have been offered seek to take hard-nosed stances against lenders.  For example, one idea is that lenders should be accountable for assessments picked up during notoriously lengthy foreclosure processes. Still other solutions would aim to bolster the power of homeowners associations to keep bank-owned properties to pass the costs that come with them to lenders.  It seems as if the lenders are the targeted group of many legislative solutions.

For a look at some specific bills, check out our recent article here.

Adding to the numerous suits alleging that homes contain defective Chinese drywall, comes a class action filed in Las Vegas, Nevada.  The Las Vegas Sun has reported that two neighborhoods are allegedly the subject of the suit.  Unsurprisingly, the builder denies using Chinese drywall – however, American drywall has also been the subject of some consumer complaints.

Four homeowners comprise the plaintiff class, and named as defendants include subsidiaries of a builder from Miami and a manufacturer from Georgia.  The defendants have denied the use of Chinese drywall in Las Vegas.  Interestingly though, the Georgia-based manufacturer is a named defendant in a Florida suit which alleges certain drywall made in America are causing health and home issues as well.

As we reported recently, the Consumer Product Safety Commission (CPSC) has been fielding numerous complaints hailing from a variety of jurisdictions.  Presently, 24 states have sourced about 1046 complaints regarding defective drywall claims.  It should be noted that the Miami-based builder stated that Chinese drywall was implemented in nearly 400 Florida homes, and it has in turn filed suit against distributors of the drywall.

If you missed the most recent status report for August, see the CPSC information center for the update.  On-site investigations in China are underway, and scientific testing results are pending.  The purpose of the testing is to establish a link between the reported health woes and the drywall itself.  A recent breathe of fresh air came via news that levels of radioactive materials were not dangerous.

Homeowners or renters who believe they may be living in a home with defective drywall should consider speaking to experienced attorneys in this newly developing area of law.

In July, the Consumer Product Safety Commission (CPSC) released a status report which stated that the agency had received 608 incident reports across the U.S.  Recently released data portrays a sharp influx in reports, encompassing two new states.  Thus, consumers in 23 states and the District of Columbia are now possible victims of dangerous Chinese drywall.

The CPSC released a supplemental status report citing 202 additional reports, equating to a total of 810 nationwide.  Pennsylvania and South Carolina now are included in the list of states with residents complaining of potential toxic drywall issues.  According to the CPSC, the bulk of the reports persist in their origins; the majority coming from Florida, Louisiana, and Virginia.

The CPSC has publicly announced that the focus of their investigations are two-fold: First, scientific pursuits with regard to establishing a causal link between the health issues residents are experiencing with the drywall in fact, and second, tracing the “chain of commerce” of the potentially hazardous material.

Over the course of the past month, the CPSC has conducted and/or sponsored the following investigative endeavors:

• Testing various samples to specify specific emission compounds (The Lawrence Berkely National Laboratory)
• Indoor sampling program, studying 50 homes
• Drywall manufacturing facility site visits
• 44 incident investigations, viewable on the Drywall Information Center website
• Testing for radioactive phosphogypsum contamination

Currently, the CPSC and attorneys general of states affected are coordinating efforts to exchange information, agreements, and confidential data.  Notably, the CPSC has received permission to begin an investigative visit to China, scheduled to begin August 17.  Several sites will be investigated that have been selected based upon detailed research and previous investigation.

The process of investigating the chain of commerce is complicated, but at this point, the CPSC has conclusively stated that it has confirmed 6,211,200 sheets of Chinese drywall imported into the United States.  To aid in the investigation, the agency is hiring temporary staff to help with the monumental task of providing consumers with more information – information which will eventually determine whether liability exists, and on whose shoulders it shall be placed.

Homeowners in Virginia have the opportunity to attend a free town-hall style informational session, headed by pioneer attorney Richard J. Serpe.  At the meeting, Mr. Serpe will discuss relevant topics relating to local investigations, remediation updates, court hearings and the Virginia class action, and upcoming scientific testing of Virginia homes.  This  meeting is open to the public, and will be held Monday, August 24 from 6 to 9 p.m., at the Mary D. Pretlow Anchor Branch Library.

The meeting will take place at 111 W. Ocean View, Norfolk, Virginia 23503 – homeowners are urged to attend for free information.  Additionally, there will be the opportunity to interact via a live question and answer session.

We represent Virginia accident claims in Alexandria, Bedford, Bristol, Buena Vista, Charlottesville, Chesapeake, Colonial Heights, Covington, Danville, Emporia, Fairfax, Falls Church, Franklin, Fredericksburg, Galax, Hampton, Harrisonburg, Hopewell, Lexington, Lynchburg, Manassas, Martinsville, Newport News, Norfolk, Norton, Petersburg, Poquoson, Portsmouth, Radford, Richmond, Roanoke, Salem, Staunton, Suffolk, Virginia Beach, Waynesboro, Williamsburg,Winchester, Accomack County, Albemarle County, Alleghany County, Amelia County, Amherst County, Appomattox County, Arlington County, Augusta County, Bath County, Bedford County, Bland County, Botetourt County, Brunswick County, Buchanan County, Buckingham County, Campbell County, Caroline County, Carroll County, Charles, City County, Charlotte County, Chesterfield County, Clarke County, Craig County, Culpeper County, Cumberland County Dickenson County, Dinwiddie County, Elizabeth City County, Essex County, Fairfax County, Fauquier County, Fincastle County, Floyd County, Fluvanna County, Franklin County, Frederick County, Giles County, Gloucester County, Goochland County, Grayson County, Greene County, Greensville County, Halifax County, Hanover County, Henrico County, Henry County, Highland County, Isle of Wight County, James City County, King and Queen County, King George County, King William County, Lancaster County, Lee County, Loudoun County, Louisa County, Lunenburg County, Madison County, Mathews County, Mecklenburg County, Middlesex County, Montgomery County, Nansemond County, Nelson County, New Kent County, Norfolk County, Northampton County, Northumberland County, Nottoway County, Orange County, Page County, Patrick County, Pittsylvania County, Powhatan County, Prince Edward County, Prince George County, Prince William County, Princess Anne County, Pulaski County, Old Rappahannock County, Rappahannock County, Richmond County, Roanoke County, Rockbridge County, Rockingham County, Russell County,Scott County, Shenandoah County, Smyth County, Southampton County, Spotsylvania County, Stafford County, Surry County, Sussex County, Tazewell County, Warren County, Warwick County, Washington County, Westmoreland County, Wise County, Wythe County, York County

WHY ISN’T THE GOVERNMENT LIKENING CHINESE DRYWALL

RECOVERY TO DISASTER RELIEF?

Let’s think about this a minute, in a very basic sense….

1.         In August of 2005, Hurricane Katrina hits the Gulf Coast, among other similar storms during the 2005 hurricane season, destroying and severely damaging thousands of US homes in the southeastern region of the country.

2. Homeowners must abandon homes and find alternative or temporary housing to survive, while they are still being asked to pay their mortgages on their damaged and destroyed properties.

3.         FEMA steps in, though with much criticism on their timing, to help homeowners recover from the damage to their homes by providing funds to repair and rebuild, as well as providing temporary housing to those who had no where to go.

4.         2005 and 2006, US businesses and importers increase their purchase of large amounts of toxic Chinese drywall, knowingly or not, to meet the demands of repairing and rebuilding so many homes at one time when the supply on-hand and available from US markets is insufficient.

5.         The drywall overstock, purchased to rebuild homes in the hurricane damaged regions, gets circulated to other areas of the country and/or businesses see an opportunity to cheaply replenish their stock in areas other than those hit by the main event…the hurricanes.

6.         Late 2008 and 2009, US homeowners in many states start to realize their homes have been built with the Chinese drywall that was imported during the recovery of Hurricane Katrina.  Homeowners experience tremendous costs to replace air conditioners, appliances, TVs, computers, silver, jewelry, fixtures and other items.  But, most importantly, these homeowners are experiencing serious health issues and paying thousands of dollars to try and find out why they are suddenly having so many health problems.  Most doctors have no idea they should be looking into problems caused by their patients’ homes, and are reaching to find answers.  And, no one in the government seems to want to put potential health damage alerts on a fast track.

7. Homeowners must abandon homes and find alternative or temporary housing to survive, while they are still being asked to pay their mortgages on their damaged and destroyed properties.

8.         Where is FEMA this time?

Long story short…the Chinese drywall issue has ultimately been caused by a natural disaster.  These people have no where to go, and are acquiring serious long-term health damages.  This is something totally out of their control…just like the devastation of a hurricane or any “natural disaster.”

Who, of ultimate power in the administration, will step up to the plate, realize and admit that the horrific Chinese drywall problems being experienced should be considered a natural disaster or caused by same, and appropriately apply FEMA’s policies to the bleak situations thousands of innocent home owners now face?   I don’t recall having to wait for the CDC, EPA, or CPSC to file their reports on the damages caused by Hurricane Katrina before FEMA stepped in to offer relief to homeowners.

These people deserve to go after those who manufactured, built and supplied builders with this terrible product through the legal system.  But, they also deserve immediate relief from our own government, that has sworn to protect and serve their constituents, just as was done after Hurricane Katrina and other disasters.  These US Citizens want to have a life while they address those responsible!  Give them relief from mortgages, give them temporary housing and pay to move them, realize they have to abandon most of their property because it’s contaminated and offer compensation to replace their property lost to the devastating damages this has caused!

Come on government, wake up and realize this is a natural disaster and these people can’t wait!

Numerous homeowners in Hampton Roads and around the country have discovered their homes were constructed with drywall that contains toxic levels of sulfur and strontium.  Both elements present extremely harmful gases when they come into contact with water molecules, such as atmospheric humidity or rain.

Are our physicians paying attention to the potential health problems stemming from homes with toxic drywall?  Are they educated enough to realize their patients may be severely compromised by elements that exist in a product that few homes in today’s market are built without?  Can homeowners living in homes built with toxic drywall feel confident that their family physician will find the answer to their problems by considering they could be affected by drywall “off-gassing?”  Or, will people continue to be diagnosed with commonly known problems that present the same symptoms that are being blamed on drywall problems, such as Sinusitis or upper respiratory problems, simply because of the lack of education of our healthcare providers?

Some homeowners have been diagnosed with Lupus and other problems that are commonly considered when a physician can find no other logical reason for their symptoms.  The symptoms being reported by homeowners whose homes have been proven to contain drywall run the gamut from headaches, allergies that didn’t exist before living in the home, and rashes to severe respiratory, mucosal and systemic health problems.  It appears those more susceptible are children, the elderly and others who have existing immuno-compromised health.  But, otherwise healthy individuals are also having “light bulb moments” when physical symptoms started not long after moving into a home built during the years where builders and contractors in the U.S. were importing drywall from China on a regular basis (broadly said to be between 2003 and 2007, but peaking in 2006), and they have realized their home may be causing the problems after further investigation.

Another consideration is that there are areas of the country where there is, obviously, more humidity or rain than others.  This also needs to be something considered by physicians across the country, because people in areas not widely known to be affected by drywall issues, where humidity or rain levels only peak at certain times of year, may only present symptoms associated with exposure to toxic levels of sulfur and strontium during those seasons.  How do we educate health professionals around the country that just because their patient didn’t present with specific symptoms all winter, for example, but are visiting the doctor on multiple occasions in the summer months for sinus problems, Bronchitis, rashes, and other issues associated with drywall, when the humidity is worse, that they should look to the potential of damages caused by drywall?  There could be people in areas where it has not been widely publicized who are being wrongly diagnosed and may continue to live in homes that, unknowingly, have toxic drywall.

Will doctors simply provide treatments for these illnesses without considering toxic drywall exposure?  Will a physician’s intake questions include, “Does your home contain toxic drywall?”  If not, how do these people find real answers to their problems?  When will the CDC or EPA finish their investigations of the true affects of the toxic components of some drywall so as to educate medical professionals so they will regularly check for the ultimate cause of the wide range of symptoms being presented by people living in toxic homes?  Our medical community must take note that more and more people could be presenting problems because they live in a toxic home and just don’t know it.  Or, many people may be treated for something in error.

Because this is such a new phenomenon to the country and to the medical trade, doctors have had no choice but to try to correlate the symptoms presenting in their patients to known illnesses and diseases.  But, that could all change if physicians are notified and educated by medical and governmental agencies that regulate the industry.  Additionally, because this issue is so new, there is no firm answer about long-term affects on those who have lived or are living in homes built with the toxic drywall.  This issue should be aggressively addressed and considered as important to those agencies in the same manner as issues related to lead paint, asbestos, Agent Orange and exposure to other components previously found to cause unforeseen damages to individuals.

The toxicity of the gases being produced in homes with contaminated drywall is still being investigated and rates of exposure will range depending on the atmosphere where the home is located.  But, a revolution in training of physicians is more than necessary to keep up and should remain ongoing until definitive answers can be found.

Between the years of 2004 and 2007 the United States domestic drywall supply ran short forcing builders and suppliers to import from China.  The drywall was made by fly ash waste, which contains high levels of sulfur compounds. 

Homes built with this defective drywall have now been found to emit these sulfuric gases, which causes noxious smells and corrodes all types of metals within the home.  Many homeowners have also reported health related issues such as nose bleeds, sinus infections, headaches, coughing, and respiratory problems. 

Several U.S. lawmakers are requesting to see a special tax deduction to help homeowners, who have been affected by defective drywall, recover losses.

Senators Mark Warner, Jim Webb, Representative Glenn Nye of Virginia, have all teamed up with Senator Bill Nelson of Florida to request that the IRS clarify if homeowners are eligible for a casualty loss deduction due to the side effects of Chinese drywall. 

Section 165(h) of the Internal Revenue Code “allows taxpayers to deduct casualty losses if the property was not connected with a profit-making venture and if the property was partially of fully destroyed due to an unforeseen, sudden and unusual event.” 

The tax deduction is far from a solution to the Chinese drywall problem. However, it does give some relief to the families affected by this crisis.  Many homeowners will need to have the defective drywall stripped out of their homes and replaced.

Some victims in Florida have tried to look into homeowners insurance for some type of compensation, but many insurers exclude coverage for damages caused by construction defects. This may be also true for insurers in other states.

Chinese drywall lawsuits have been filed by many homeowners against the manufacturers, importers, suppliers, retailers, and builders seeking compensation for their damages and losses.  A resolution to this problem may take years, and homeowners will be stuck in difficult financial positions having to pay for repairs, their current mortgage, and possibly an alternate place to live.  

The defective drywall lawsuits were recently consolidated by the Multidistrict Litigation panel in New Orleans, and will be handled by Judge Eldon E. Fallon.