Hard information remains elusive on the causes of the
off-gassing problem associated with imported Chinese drywall.
But the story is far from over, and it continues to attract
national attention. In one recent report, CNN tells the story
of a family whose doctor has instructed them to move out of
their nearly new, million-dollar dream home because of
continual respiratory complaints
("
Get out of house with Chinese drywall, doctor tells
family," by Rich Phillips). The health issue adds a whole
extra layer of potential liability onto what appears to be a
clearly established pattern of damage to wiring and air
conditioning coils.
There's also a troubling claim, so far unconfirmed, that the
problem may extend to drywall made in the United States. A new
class-action lawsuit names Georgia-Pacific and 84 Lumber as
defendants, and points to drywall made in the U.S. with
synthetic gypsum (which contains calcium sulfate derived from
power plant stack scrubbers, rather than mined from underground
mineral deposits). According to the suit, G-P's synthetic
gypsum drywall has excessive levels of sulfate, and can off-gas
and cause the same problems that have been linked with
Chinese-made imported drywall. So synthetic gypsum, previously
touted as an earth-friendly recycled product, may now have to
cope with a stigma because of this newly alleged defect. Hanley
Wood's EcoHome covers that story
("
Florida Lawsuit Claims GP, 84 Sold Dangerous Drywall," by
Craig Webb).
And in another mysterious development, at least one Florida
homeowner is alleging that domestically-produced drywall
— this time, a National Gypsum product — is
causing similar damage even though, according to one expert,
samples of the drywall do not release sulfur compounds in
laboratory testing. Sarasota's Herald-Tribune covers that story
("
Another drywall mystery inside the walls?" by Aaron
Kessler).
In an
advisory
brief for builders facing legal action, attorneys Stephen
Henning and Patrick Schoenburg, of the California law firm Wood
Smith Henning and Berman LLP, urged defendants to mount an
active, detailed defense of any tort claim. Health-related
claims, in particular, should be challenged case by case at the
level of the evidence, argued the attorneys:
"Whatever procedures are put into place, defendants
cannot allow their right to demand individualized proof of
exposure, causation and injury to be taken away, even if
plaintiffs are not alleging serious injuries. Allowing this
to occur plays into the hands of plaintiffs' attorneys, who
want to take the easiest, cheapest route to obtaining a
settlement. Every plaintiff has a unique health history and
vulnerability to injury. The duration, level and
circumstances of each plaintiffs' alleged exposure is
particular to that individual. It is each plaintiff's
burden to produce evidence on each of these points. If the
cost to obtain such proof exceeds the potential recovery,
the claims will end. However, if defendants allow claims to
be made and settled easily, on a mass basis, the claims
will certainly continue."
Louisiana attorney Scott Wolfe's Chinese Drywall Blog took a
closer look at one vulnerability for defendants in Chinese
drywall lawsuits: the "pollution exclusion" that insurance
companies may rely on to avoid covering builders for liability
in off-gassing situations. A Texas court recently ruled in
favor of the insurance company in a case involving carbon
monoxide where coverage was denied, reports Wolfe. But Wolfe
says the issue could play out in various ways depending on the
state, and also depending on the facts of the case. Read more
in
"
Pollution Exclusion at Center of 5th Circuit Decision this
Week," by Scott Wolfe.
Meanwhile, the drywall problem is attracting increased
attention at the national level. Senators from Florida and
Louisiana have called for a nationwide recall of Chinese
drywall, reports the Palm Beach Post
("
Sens. Nelson, Landrieu call for recall, temporary ban on
Chinese drywall imports," by Allison Ross). And the U.S.
House of Representatives voted to order a Federal probe of the
impact of the Chinese drywall problem on foreclosures and on
homeowners' insurance coverage
("
House to probe drywall fallout," by Gary Taylor).
Louisiana Senator Landrieu has also requested hearings by
the Senate Commerce Committee, according to the New Orleans
Times-Picayune
("
Landrieu calls for Senate hearing on Chinese drywall," by
Kate Moran). And Chinese drywall may have been a factor in a
shake-up at the U.S. Consumer Products Safety Commission:
President Obama has announced plans to increase the
Commission's size from three members to five, and to replace
current chairwoman Nancy Nord. The Sarasota Herald-Tribune
covers that story here
("
Obama aims to oust chief of consumer safety over drywall,"
by Aaron Kessler).
And if the drywall problems themselves aren't enough trouble
for Floridians, homeowners run the risk of being burned twice
— once by the drywall itself, and once by fraudulent
offers to "fix" the problem. The Florida Attorney General's
office has warned about scam artists offering bogus solutions
to the drywall problem, costing thousands of dollars, that
won't actually help. The Miami Herald has this report on the
scam problem
("
Consumers
warned of drywall repair scams," by Nervi Shah and Patrick
Danner).
Stay tuned for Coastal Connection's continuing coverage of
the Chinese drywall story.