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Chinese Drywall News Roundup
AP: La. family with drywall-tainted home awarded $164K
“The award he gave is going to be more than sufficient to remedy the Hernandez home,” said plaintiffs’ attorney Christopher Seeger.
Wall Street Journal: Chinese Drywall Maker Says It Is in Talks With Builders
The homeowner will also receive money for damaged property and be reimbursed for living expenses and attorney and court fees, said Chris Seeger, the attorney representing the Hernandez family.
This “creates a problem in that [KPT is] not going to get out cheap like they want to,” he said.
Wall Street Journal Law Blog: Justice Near for the Prisoners of Chinese Drywall?
“Seeger…dramatically compared the drywall to a ‘poltergeist’ taking over and slowly destroying the Hernandez’s Mandeville, La., home.”
Miami Herald: Court ruling gives boost to victims of bad drywall
“These initial decisions in Louisiana are hugely important for thousands of homeowners who have been living with the poltergeist effects caused by this defective material in their midst,” said the Hernandezes attorney, Christopher Seeger.
The previous ruling for six Virginia families was for $2.6 million. But the judgment was found against a Chinese manufacturer that has not responded to any U.S. court proceedings. The homeowners may never collect their award.In the Hernandez case, drywall manufacturer Knauf Plasterboard Tianjin conceded that its product was problematic. At issue was how much the Hernandezes should be paid to fix their house.
“It’s a more significant victory because Knauf [Plasterboard Tianjin] appeared in the case and presented their case at trial and had a full opportunity to depose and cross examine our witnesses,” Seeger said.
Many federal lawsuits targeting those in the drywall supply chain have been condensed and are being heard in Fallon’s court.“With additional trials set to begin this June, Judge Fallon has sent an unequivocal signal to drywall manufacturers, suppliers, builders and others in the construction industry that they will be held responsible for total repairs caused by this horrendously inferior product,” Seeger said.
Forbes: Wallboard Decision Could Bite U.S. Companies
That’s good news for lawyer Christopher Seeger of New York’s Seeger Weiss, who incidentally won a $4.9 billion settlement of Vioxx claims before the very same judge in 2008.
Seeger says he’s going to try and “seize ships, companies,” anything he can from Taishan, but admits that might be a fruitless search. As detailed in the judge’s order, the manufacturer appears wrapped in a cocoon of state-affiliated Chinese companies. U.S. lawyers are likely to hit a wall of sovereign immunity when they try to seize assets linked to the Chinese government.
But Seeger tried a second case against German wallboard manufacturer and distributor Knauff, which ended in mid-March. A decision in that case is expected any day, said Seeger, and unless Knauff’s defenses were more successful than Taishan’s, damages could be severe. Knauff tried to intervene in the Taishan case and argue for lower remediation requirements, Seeger said, but withdrew the day before trial began. Knauff representatives weren’t immediately available for comment. Other defendants include wallboard distributors and homebuilders such as Lennar, Pulte and U.S. Home. They, in turn, are suing the Chinese manufacturers that supplied the allegedly defective wallboard.
Seeger said he and other lawyers involved in the multi-district litigation have 7,000 cases teed up, and he figures another 20,000 homes might have sulfurous wallboard that needs to come out. At $200,000 per home, that’s $5.4 billion.
Judge Fallon didn’t leave much room for discussion about what to do with a sulfur-infected home. In the Taishan ruling, he cited reports from experts including Sandia National Laboratory showing that sulfur fumes escaping the tainted wallboard can cause pitting in wires and copper pipe as well as heating and air conditioning systems. All of it comes out, the judge said. Oh, and electronic gear and appliances need to be replaced as well. Typical cost: $232,000 for a house worth maybe $350,000.
Seeger said there are several trials tentatively scheduled for mid-June. Homebuilders like Lennar and Beazer are trying to fix homes as fast as they can and thus halt further suits before they are filed. But there are probably plenty of deep pockets around to negotiate a settlement with, even if the Chinese are out of reach. Judge Fallon’s ruling, by setting out in excruciating detail all the ramifications of installing smelly wallboard in a house, has set a very high opening bid for the plaintiffs.
Bradenton Herald: Judge awards $164K to Louisiana family for Chinese Drywall
Fallon went down the middle, awarding $136,940 in remediation costs to the couple. He also awarded $5,357 for damaged personal property and $19,069 to cover the family’s living expenses while it moves out during remediation.
“The award he gave is going to be more than sufficient to remedy the Hernandez home,” plaintiff attorney Christopher Seeger said.
CBS: Judge Awards $164K in Chinese Drywall Case
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