Claims Against Taishan Continuing

This week, Judge Fallon heard arguments for and against certifying a class for damages against one of the Chinese manufacturers of corrosive drywall. The manufacturer is Taishan, a Chinese company believed to be mostly owned by the Chinese government. Recovering from Chinese companies has been extremely difficult for American consumers.

Litigation has been ongoing over the last six years, and Taishan has for the most part been an absentee party. Unlike homes with Knauf-manufactured drywall, where Knauf paid to remediate, homes containing Taishan drywall have been unremediated-unless the homeowner paid out of pocket for the repairs.

For more on the story, click here.

Taishan Indicates It Will Pay

Earlier this month at the monthly status conference for the Chinese Drywall MDL in New Orleans, representatives of Taishan Gypsum Company indicated to the Court that they would pay a judgment against the Chinese entity. The judgment dates to 2010, when the Court ruled that Taishan was liable for $2.6 million to fix the homes of the seven Virginia families. The seven families were plaintiffs in a bellwether case.

Taishan has never paid the judgment. While another Chinese drywall manufacturer owned by Knauf paid to remediate homes, Taishan filed multiple appeals and challenged the jurisdiction of the MDL Court. After the Fifth Circuit denied all of Taishan’s appeals, the company dismissed its lawyers and stopped showing up in court.

Last summer, U.S. District Judge Eldon E. Fallon, the presiding MDL judge, found Taishan in civil and criminal contempt of court, and barred the company, and its parent corporations, from doing business in the United States.

At the monthly status conference, when Judge Fallon was expected to hand down a judgment for the entire class of Taishan homeowners (potentially more than $1 billion in damages estimated by the amount paid out by Knauf) the company suddenly reappeared, along with a new set of lawyers from Alston & Bird.

It is estimated that about 4,000 houses nationwide were built with Taishan’s toxic drywall. The board emitts sulfur gases that corrode metal wiring and pipes, short-circuit electronics and can lead to numerous respiratory ailments.

Could this about-face signal Taishan wants to come to the table and fix the thousands of homes affected by its product? Could this be the beginning of the end for victims of Taishan drywall? I hope so, but it is too early to tell.

Government Releases Study Linking Health Defects to Chinese Drywall Exposure

A study released last week by the U.S. Agency for Toxic Substances & Disease Registry (ATSDR), found a causal link between exposure to tainted Chinese drywall and health issues. The most common reported problems were headaches, nosebleeds and sinus issues. Advocates of Chinese drywall victims have been saying for years that the toxic and corrosive drywall was responsible for victims' ailments. This study confirms what many have thought all along. 

The latest report also disputes the results of a "study" conducted by the Consumer Product Safety Commission (CPSC) released a few years ago that claimed there was no causal linkage, or more specifically, that the levels of toxins were not of a level allowable for a good test.

Sadly, many homeowners with Chinese drywall will probably never be made right as one of the major manufacturers of the corrosive board has thumbed their noses at the U.S. Justice System. Those victims will be lucky if they receive pennies on the dollar to remediate their homes. Also, the settlement money set aside for bodily injury claims is minuscule when compared to the monies set aside for other categories of damages. 

For more on the story, clink on the links below:

http://www.usatoday.com/story/news/nation/2014/05/02/chinese-drywall-adverse-health-effects-wallboard/8574707/

http://www.atsdr.cdc.gov/drywall/

http://www.wftv.com/news/news/local/action-9-government-report-links-some-chinese-dryw/nfnjd/

FRIDAY DEADLINE TO FILE CLAIMS FOR CHINESE DRYWALL SETTLEMENT

This Friday, October 25th, is the deadline to file claim forms for the Chinese Drywall settlement. The settlement is being administered through the MDL out of New Orleans. If you have not filed a claim by Friday, you will be barred from participation in the settlement.

Open Window For Those Who Failed To Register Before Deadline in CDW Settlement

If you did not register before the July 8, 2013 Registration deadline and still wish to participate in the Class Settlements, you may file a Provisional Registration on or before October 18, 2013. 

To file a provisional registration, you must go to https://www3.browngreer.com/Drywall/Un-Secure/RequestAccess.aspx and complete the Provisional Registration process.  You can email CDWQuestions@browngreer.com if you have any questions about the Provisional Registration process. 

If you do not have internet access, you may request a Provisional Registration Form by calling 1-866-866-1729 or by correspondence to U.S. Mail to P.O. Box 25401, Richmond, Virginia 23260. 

If you intend to file a Provisional Registration, you must do so on or before October 18, 2013. 

Judge Fallon Extends Deadline to File Chinese Drywall Claim Form

Judge Fallon has extended the deadline to file Chinese drywall claim forms in the global settlement. The deadline was supposed to be today, Monday September 30th, but the PSC filed a joint motion with Defense counsel on Friday asking that the deadline be extended to October 25th. Judge Fallon granted the motion and the deadline has been extended as requested.

One can still file their claims before this deadline as the review committee is expected to process the claims on a rolling basis as they come in.

Chinese Drywall Deadline Monday July 8th

The registration deadline for all Chinese drywall settlements administered through Judge Fallon's MDL Court in New Orleans is Monday July 8th. All claimants who wish to participate in any of the various settlements must register their claims by this date or they will be prohibited from receiving settlement monies or remediation. Claim forms are not due at this time, but to file a claim form you must register.

Chinese Drywall Registration Deadline Extended (Again)

Yesterday's deadline to register claims for any of the Chinese drywall settlements was again extended by Judge Fallon. The Order came through late yesterday evening.

The deadline to register a claim is now set for July 8th. If you do not register a claim, you will be excluded from receiving any benefits from the settlements, absent good cause shown.

DEADLINE TODAY FOR CDW REGISTRATION

Today, June 24th,  is the last day to register for any of the Chinese drywall settlements. The Registration is the first step. The second step is the submission of claims.  No claim form will be accepted absent a registration. The claims must be filed by August 26, 2013.

 

REGISTRATION DEADLINE FOR CHINESE DRYWALL CLAIMS FAST APPROACHING!!!

On March 27, 2013 the Honorable Eldon Fallon issued an Order governing the registration of claims for the 5 inter-related settlements involving Knauf drywall, and entities downstream from Knauf and their insurers.  A copy of the Order and the Registration Form are attached for your convenience.  Please note that the Registration Form is intended to be completed online. 

Further information regarding the Registration Form may be found on the Court’s website http://www.laed.uscourts.gov/Drywall/Drywall.htm, BrownGreer’s website https://www3.browngreer.com/drywall/, and at https://chinesedrywallclass.com.

Please note that there is a deadline of Saturday, May 25, 2013 to submit the Registration Form to register your client(s) in the settlement.  Since the title to the property must be submitted with the Registration Form, you should begin to collect them from your clients, if they are not already in your file.

If you are unsure if you should register, do so. We are registering all of our clients affected by Chinese Drywall-even those with Taishan board. In fact, I recommend registering even if you are not in the class of those folks who filed a claim on or before December 9, 2011.

 

 

 

Jury Verdict a Defeat for Chinese Drywall Homeowners

A federal jury last week ruled in favor of the New Orleans drywall supplier, Interior/Exterior Supply, that distributed the toxic and corrosive Knauf-brand imported Chinese drywall. Judge Fallon, the presiding judge over the Chinese drywall MDL, oversaw the week-long trial and found that the company did not know that the materials purchased from Knauf were defective.

Knauf Plasterboard Tianjin, a major manufacturer of problem drywall from China, agreed last year to pay hundreds of millions of dollars to repair 4,500 homes ruined with its product. That proposed settlement is still awaiting final court approval from Judge Fallon.

One of the major impacts of this verdict is how it affects other distributors of Knauf-brand drywall and Taishan-brand drywall in the MDL and the many other state-filed cases throughout the United States.

 

Chinese Drywall Fairness Hearing Heard Today

Today, the much anticipated fairness hearing occurred in Judge Fallon's courtroom in New Orleans. Judge Fallon is the presiding judge over the Chinese drywall MDL. A call-in line was not set up, so attorneys outside of the courtroom could not monitor the hearing. Judge Fallon was urged to accept the proposed settlement agreements between the Plaintiffs and the Defendants.

What complicates matters is that the different agreements ultimately affect different categories of Plaintiffs. Also, the deadlines for the Defendants to opt-out of the agreements have been extended past today's date. Below are two links to stories covering the hearing. Of note is the figure that 300 or so Plaintiffs have opted out of the proposed settlements.

http://www.chron.com/news/article/Judge-urged-to-approve-Chinese-drywall-settlements-4033488.php

http://www.myfoxal.com/story/20086215/judge-urged-to-approve-chinese-drywall-settlements

New York Times Article on Latest Taishan Ruling

The New York Times published an article last week on the latest jurisdictional rulings over Taishan. It points out the difficulties in ever recovering from Taishan, a Chinese manufacturer. It also touches on a recent post I wrote regarding Federal legislation and the importation of Chinese-manufactured drywall. Click on the link below to get the entire story:

http://www.nytimes.com/2012/10/13/business/chinese-drywall-lawsuits-at-a-turning-point.html?pagewanted=all&_r=0

Legislation Passes House to Ban Sale of Toxic Chinese Drywall

The Bradenton (FL) Times reported, "US Rep. Vern Buchanan, (R-FL), co-sponsored legislation that passed the US House, which would ban the sale of toxic Chinese drywall and offer relief to thousands of Florida homeowners who've been victims of its use." The Times noted that "the Contaminated Drywall Safety Act makes Chinese-manufactured drywall a banned hazardous material under the Consumer Product Safety Act, meaning it cannot be imported into the US, and requires the Consumer Product Safety Commission to issue guidelines to ensure that existing drywall is properly disposed of." Also, the bill "calls on the Secretary of State to demand that Chinese manufacturers comply with any legal decisions and remedies for affected American homeowners." The legislation has passed the House and now moves to the Senate for consideration.

The Daily Press (VA) reported, "The toxic drywall has affected thousands across the United States, including hundreds in Hampton Roads, such as the Hollymeade neighborhood in Newport News. The defective drywall was used during the mid-2000s building boom when there was a shortage of American-made drywall." The story added that "many homeowners have complained of health problems resulting from a strong 'rotten eggs' smell, including headaches and respiratory problems."

I am not sure what this legislation will accomplish. The information that is out there shows toxic drywall was imported into our country between 2005 and 2008. I have seen no information indicating that toxic Chinese drywall is still being imported for use in the U.S. This legislation appears to be more of a way for politicians to say they are doing something in an election year, when the problem is already out of the bag. I do think that the part of the bill calling for the Chinese manufacturers to comply with any verdicts against them is interesting, but do not see how it could be enforceable.

Judge Fallon Rules U.S. Courts Have Jurisdiction Over Taishan

Judge Fallon, the presiding federal judge over the Chinese drywall cases consolidated in an MDL, has refused to dismiss claims from homeowners against one of the major manufacturers of the toxic and corrosive product. Taishan Gypsum Co. Ltd. argued that U.S. courts do not have jurisdiction over claims against the Chinese company, but the Court rejected that argument.

Judge Fallon also refused to vacate a $2.6 million default judgment he entered against the company after it initially refused to respond to the suits. Taishan Gypsum manufactured and sold more than 1.8 million sheets of drywall that were shipped to Virginia, Florida, Louisiana and other parts of the U.S. from 2005 to 2009.

The company claims it did not know the ultimate buyer or user of its drywall in Virginia, but the 5th U.S. Circuit Court of Appeals has concluded that "such lack of knowledge does not insulate a foreign defendant from personal jurisdiction in the forum," Fallon wrote.

The judge said Taishan "possessed more than mere awareness or expectation that its drywall would be delivered, sold, and installed in Virginia." Fallon presides over more than 10,000 claims involving Chinese drywall. His ruling also could benefit homebuilders, brokers, sellers and installers who have been sued for using Chinese drywall and are seeking to recoup millions of dollars they have spent to repair damaged homes.

A different Chinese company, Knauf Plasterboard Tianjin Co., agreed in December to pay hundreds of millions of dollars to resolve related drywall claims. That company is in reality a German corporation who owns manufacturing plants in mainland China.

Chinese drywall was used in the construction of thousands of homes, mainly in the South, after a series of hurricanes in 2005 and before the housing bubble burst. The drywall contains unusually high levels of sulfur that emits foul-smelling gases, corrodes HVAC coils, copper pipes and electrical wiring, and tarnishes other metal items in the home. Homeowners also complain of aggravation of allergies, asthma, nosebleeds and other maladies.

The litigation against Taishan "has not followed the same trajectory or enjoyed the same measure of success" as the Knauf cases, Fallon wrote in his Order. Judge Fallon had to travel to Hong Kong earlier this year to supervise a series of depositions of Taishan executives after an initial round of depositions, hamstrung by a language barrier and other problems, dissolved into "chaos."

What does this all mean to the thousands of homeowners who have Taishan board in their homes? That answer is not at all clear. It is not yet known if Taishan will appeal the ruling. Taishan could ultimately ignore the Court’s ruling by not satisfying any monetary judgments against it, as many other Chinese manufacturers do in our country.

The problems created by Taishan’s legal tactics lead Senators Sheldon Whitehouse (D-RI) and Jeff Sessions (R-AL) and Representatives Betty Sutton (D-OH) and Mike Turner (R-OH) to introduce the “Foreign Manufacturers Legal Accountability Act of 2011” (S.1946/H.R.3646).  The bill would force foreign manufacturers to play by the same rules as American manufacturers by requiring foreign manufacturers to have a registered U.S. agent that would accept service of process for civil and regulatory claims.

Chinese Drywall Pilot Program In the News

The Birmingham News published a story by Dawn Kent this week on the pilot program in the Birmingham metro-area. Nothing much new to report, but overall, a good story on the hardships of living with toxic Chinese drywall and the benefits of the pilot program. See below for a link to the article posted on al.com:

http://blog.al.com/businessnews/2012/05/after_drywall_dilema_a_new_beg.html

AUGUST 26TH DEADLINE FOR FILING KNAUF CHINESE DRYWALL CASES

         

            The Plaintiffs Steering Committee has decided to file another Complaint for those homeowners who have drywall manufactured by the Knauf entities. The deadline to be submitted into the Multi-District Litigation out of New Orleans is Friday August 26. This may be the last chance to be included into the MDL. We believe that filing Knauf claims through the MDL is the most practical option for those homeowners affected by toxic and corrosive Chinese drywall.

            Knauf Plasterboard Tianjin is one of the biggest manufacturers of defective Chinese drywall. Most of the defective and toxic drywall was imported into the United States between 2005 and 2007. Due to the large scale rebuilding efforts on the Gulf Coast after Hurricanes Katrina, Rita, Ivan and other storms, builders imported drywall from China because there was not enough domestic drywall for their needs. However, corrosive Chinese drywall is not limited to only the Gulf Coast States, but has been found in places such as Virginia. Unfortunately, most of this Chinese drywall is toxic, corrosive and defective.

            Evidence of homes containing toxic Chinese drywall includes repeated AC coil failures, electrical issues, appliance failures, corroded wiring, tarnished fixtures and sulfur odors. Many toxic Chinese drywall homeowners are also afflicted with respiratory issues, nose bleeds, headaches and/or unexplained rashes. Those homeowners who previously experienced asthma or allergy problems have reported that their symptoms are much worse than before they moved into their Chinese drywall homes.

            To be included in this Complaint, a homeowner must obtain evidence or indicia of Knauf Plasterboard (Tianjin) Co. Ltd. (“KPT”), Knauf Plasterboard, (Wuhu) Co. Ltd. (“Wuhu”), or Guangdong Knauf New Building Materials Products Co., Ltd (“Dongguan”) as the drywall manufacturer (photos, inspection reports, etc.). Typically, these Knauf entities marked their drywall with the words “Knauf” or “Knauf-Tianjin” in dot matrix print markings.

            If you believe you have defective Chinese drywall manufactured by Knauf in your home and you suffer from the above mentioned home and health problems, please contact me immediately. This may be your last chance to be included in the MDL and you must act now. Although the Steering Committee is not filing claims for Taishan manufactured drywall, they are considering doing so in the future.

FOR A FREE CASE EVALUATION, CONTACT BOOTH SAMUELS AT BOOTHS@PITTMANDUTTON.COM OR CALL TOLL FREE 1-866-515-8880

Banner Settles In Chinese Drywall Litigation

Judge Fallon last week gave preliminary approval to a $54.5 million settlement between Banner Supply and thousands of homeowners the company supplied with defective Chinese drywall. Most of the affected properties are located in Southwest Florida. Judge Fallon presides over more than 10,000 drywall cases merged in multidistrict litigation in New Orleans. However, like the Inex “settlement”, the preliminary approval does not mean it is a done deal.

Banner, based in Miami, purchased about 1.4 million sheets of Chinese drywall, but says it didn't know of defects. It is estimated that 3,000 homes in Florida have Chinese drywall supplied by Banner.

Meanwhile, some attorneys believe the settlement as it stands is full of unanswered questions and looks like a raw deal. Unless those questions are answered, they will advise their clients to opt out.

There have been many criticisms of the settlement including:

- An estimated payout of $4,000 to $6,000 per homeowner, way short of the amount of money needed to fix drywall-damaged homes.

Homeowners won't be told what amount they will receive until the deadline passes for them to decide whether to take the settlement. The deadline will be in mid-August.

- The settlement terms allow for attorney fees of as much as 32 percent of the $55 million, and no limit on administrative costs.

- Banner is not required to contribute its corporate assets to the settlement fund. The $55 million would come only from four Banner insurers: Chartis, FCCI Insurance Co., Hanover American Insurance Co. and Maryland Casualty Co.

Attorney fees are actually in the control of Judge Fallon. The amount fluctuates from hourly fees to percentages of 40 percent or more among the law firms involved. What Fallon has indicated is that he will not approve any fee that is more than 32 percent.

As to unanswered questions, Fallon will hold a fairness hearing before the settlement is finalized so anyone with objections can have them addressed.

In a statement provided by a spokesman, Banner attorney Michael Peterson of Miami said that Banner "has been severely harmed by misrepresentations made to it."

The toxic and corrosive drywall, imported mostly between 2005 and 2008, emits sulfur compounds that corrode air conditioning coils, electrical wiring, plumbing fixtures and other metal items in the home. Homeowners complain of health problems from respiratory illness to nosebleeds.

There are some dangerous consequences for those Plaintiffs who opt out of the proposed settlement. The biggest problem would be if Banner filed for bankruptcy and Plaintiffs had to pursue their claims through bankruptcy court, which could take years and yield nothing. Plaintiffs would be left holding the bag if no other defendants settles or if any judgment was uncollectible.The alternative of taking some money, no matter how little, looks like a much better decision than opting out of this settlement.

Partial Settlement in Chinese Drywall MDL

A partial “settlement” has been reached with Interior/Exterior Building Supply LP, the New Orleans company that distributed the Knauf-brand imported Chinese drywall from Texas to Alabama, and its insurers. It appears that the settlement is broken down into two groups-“Louisiana homeowners” and “Non-Louisiana homeowners”. No details are available yet on how and when money could be distributed to eligible homeowners.

Under the deal, which is still subject to court approval, Interior/Exterior's two primary insurers will put up the $8 million limit of their insurance policies to compensate homeowners. Sadly, this amount is but a drop in the bucket to cover remediation and health care costs related to the toxic drywall. That is why later this year, the plaintiffs will proceed to trial against Interior/Exterior's excess insurers, who have another $72 million in coverage.

Drywall was imported from China from 2004 to 2008 because the domestic drywall industry couldn't keep up with the demands of the housing boom and massive rebuilding efforts in the Gulf South after the 2004 and 2005 hurricane season. The drywall releases sulfuric gases that corrode metal appliances and components in homes, and residents of homes with problem drywall complain that it gives them headaches and respiratory ailments. They have been stuck living in houses they can't afford to fix and are unable to sell because insurers won't cover Chinese drywall related damages.

Today's settlement builds upon a deal that was reached in October with Knauf Plasterboard Tianjin, a Chinese manufacturing unit of the German company Knauf Gips. Knauf and other entities that dealt with the problem drywall, including Interior/Exterior, agreed to pay for a pilot program to remediate 300 homes with Knauf-brand drywall in Louisiana, Mississippi, Alabama and Florida. The program launched in February with homes in Florida, and in March with homes in Louisiana. Moss & Associates, the Florida contractor hired to run the program, has said that all 300 homes should be enrolled in the program by the end of June, and all work should be completed by the end of the year. The pilot program has been slow and there were some delays to begin the program.

The goal of the program was to get a more realistic sense of what it costs to repair a home with bad drywall, and use it to confect a larger settlement. But it only touches 300 homes in four states, while the U.S. Consumer Product Safety Commission has received complaints from about 6,300 homeowners in 38 states, and some estimates say tens of thousands of homes are affected. Louisiana has the second highest number of complaints on file at the CPSC, behind Florida. It also appears that more and more Knauf homes are being discovered in Alabama, and particularly in the mid-to-northern counties of the State.

Knauf is believed to be the largest company that manufactured bad drywall, and it is the only manufacturer that has voluntarily stepped up to try to resolve problems. Interior/Exterior, based out of New Orleans, is Knauf's primary distributor in the South.

Our firm is currently investigating Chinese drywall claims. If you or a loved one have been injured by toxic Chinese drywall, please contact Booth Samuels at (toll free) 1-866-515-8880 or at booths@pittmandutton.com.

Florida Judge Rules in Plaintiffs' Favor Against Builders in Chinese Drywall Suit

Judge Glenn Kelley of the 15th Judicial Circuit in Palm Beach County, Fla., said that builders and installers can only be held liable for “negligence” in faulty drywall cases if they had actual or implied notice of a defect in the Chinese manufactured drywall at the time of construction. Plaintiffs must prove that the builders and others should have known the drywall was defective.

While the ruling affects only Palm Beach County, Plaintiffs hope it will sway court decisions being made across Florida and the country, particularly in the MDL out of New Orleans, which consolidated federal drywall cases brought by thousands of aggrieved homeowners.

During the devastating hurricane seasons of 2004-2005 combined with the large home construction boom, drywall, which is gypsum pressed between paper and used in walls and ceilings, was imported from China to fill a domestic shortage. A growing number of homeowners complain of egg-like odors and corrosion that tarnishes metals and causes appliances such as air conditioners to fail. The government recommends consumers remove any possibly faulty drywall.

While several court settlements and decisions have been reached, the role and liability of home-building companies and the distributors of the drywall  remain unclear. Last year, Knauf Plasterboard Tianjin, one of the biggest suppliers of the problematic wallboard, along with suppliers and commercial liability insurers, agreed to remove and replace drywall they made and sold, as well as all electrical wiring, gas tubing and appliances, at 300 homes in four states. That pilot program is still being implemented, but not quick enough for the homeowners.