Upcoming Chinese drywall lawsuits March 8, 2010

The federal litigation that was held in the Eastern District of New Orleans – aimed at determining what it takes to fix homes damaged by defective drywall – wrapped up recently.  While the detailed ruling is expected soon, other suits are taking place.

The Bradenton News source reported that a lawsuit is heading to trial soon, which involves four Florida (Manatee County) houses.  The trial is expected to begin next week.

In the suit, home builders are suing an insurance company.  Specifically, Taylor Woodrow Homes and Taylor Morrison Homes, have filed suit against Scottsdale Insurance Co.  The builders are asserting that the insurance company ought to bear the burden of paying for the costs associated with replacing the problematic and dangerous drywall.  The subdivisions in question are known as Aberdeen, Crystal Lakes, Oakley Place, and Greenbrook.

Hundreds of cases have been consolidated into part of the federal proceedings in New Orleans.  An initial trial just wrapped up that involved seven Virginia homeowners.  Around the corner, on March 15, a family from Louisiana is scheduled to begin trial against a Chinese owned entity/manufacturer.

While these cases are heading to trial, and homeowners across the nation are watching closely, federal authorities also have their hands full.  Some key agencies that have investigated Chinese drywall allegations include the Consumer Product Safety Commission and the Environmental Protection Agency.  (CPSC and EPA). Testing was performed to determine whether the drywall was causing reported symptoms.  After lengthy studies that are still ongoing, it seems clear that there are at least elevated levels of some dangerous compounds in tested samples.