Contaminated Drywall RenovationChinese Drywall Remediation & Litigation - Breaking News

March 18, 2011

WASHINGTON, D.C. - The U.S. Consumer Product Safety Commission (CPSC) and the U.S. Department of Housing and Urban Development (HUD) are issuing an updated remediation protocol (pdf) for homes with problem drywall.

Based on this study, CPSC and HUD staff, representing the Interagency Task Force on Problem Drywall, are no longer recommending the removal of all electrical wiring in homes with problem drywall. This change in the government's protocol may reduce the cost of remediation for many homes.

December 16, 2010

As time passes and more light is shed on the Chinese drywall problem, litigation of Chinese drywall ("CDW") claims has escalated. Already, at least four builders have filed for bankruptcy protection under Chapter 11: WCI, Levitt and Sons, Tousa Homes and South Kendall Homes.

Chinese drywall is still a big issue but that country may no longer have a monopoly on a stink-producing, metal-corroding, health-endangering building material. U.S.-made drywall is now the target of investigations and lawsuits. Ninety-seven homeowners in four states have joined lawsuits against U.S. drywall manufacturers in the past year.

Plaintiffs in the largest lawsuit, involving 93 Florida homes, attribute the problems to drywall made by National Gypsum, one of the nation's largest drywall manufacturers.

November 29, 2010

Last week, WCI Communities sold one of its developments affected with large amounts of Chinese drywall -- Parkland Golf & Country Club to Toll Brothers. Previous to the sale, it was acknowledged that over 100 home in that community were affected by tainted drywall. The sale forced the disclosure that 25 more "unsold" homes were also contaminated.

November 24, 2010

This week, November 24, 2010, Drywall manufacturer Knauf Plasterboard Tianjin agreed to pay to repair dozens of houses and cover attorneys' fees and other expenses in Homestead that were part of a class-action suit.

November 22, 2010

In June, a jury awarded  over $2.47M to a Miami homeowner, with  $1.7M just  for loss of enjoyment. Drywall supplier Banner Supply Company was hit with 55 per cent of the liability, the drywall importer who connected the Chinese manufacturers to the Florida market was assessed five percent and is likely to become a target in more cases.

It was revealed at trial that Banner Supply Company had advised Knauf that two major builders, WCI and GL, had forced it to remove CDW and replace it with domestic product. But that disclosure is just the tip of the iceberg for Banner.  Banner has been named in over 2800 individual suits.

This week, November 22, 2010, Banner Supply Company agreed to settle its part of a class-action lawsuit brought by 79 South Florida homeowners. Banner Supply Corp. agreed to pay a confidential amount to the homeowners. That means four cash settlements have been reached with defendant companies in the case, for a total of $9 million. Other companies sued in the class-action case are; South Kendall Construction and an affiliate, Palm Isles Holdings, agreed to pay $4 million. Keys Gate Realty settle for $2.6 million. Atco, the installer, paid $375,000.

On September 24, 2010, Palm Beach County Judge, Glenn Kelly, ruled in favor of the dedendent, homebuilder Centerline Homes, based on the Economic Loss Rule (“ELR”).  The ELR limits the types of damages that can be recovered.  As a result of this ruling, homeowners in Palm Beach County are now limited to the remedies contained in their purchase contracts and cannot recover for damages to personal property.

Another aspect of Chinese drywall losses is insurance litigation. The claims of homeowners has spawned litigation with insurers. As of May 2010, the coverage cases include 25 under CGL policies, with 15 in Florida alone. The LexisNexis Community blog has a recent in-depth posting worth reading on Chinese Drywall Litigation, Settlements, and Insurance Claims

IICRC support

Whether you are a Treasure Coast area property manager, commercial general contractor, or home owner, One Call Properties Service will provide quality work, timely service, and reasonable pricing for all tainted drywall renovation projects. We pride ourselves on the high standards we have established and maintained as a Treasure Coast area contractor. We will gladly provide references if you are considering us for your next damage restoration project.


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