Attorneys filed a class action lawsuit in New Orleans
federal court on December 10 against Chinese drywall
manufacturers Knauf Tianjin, Knauf Wuhu, and Knauf Dongguan
(subsidiaries of the German firm Knauf Gips). Named as
additional defendants alongside the German-owned Chinese firms
are dozens of U.S. importers, distributors, building material
suppliers, builders, and drywall installation contractors.
More than 2,000 homeowners are enrolled in the suit as
plaintiffs — at their head, New Orleans Saints head
coach Sean Peyton, whose Mandeville home was built with drywall
made by Knauf, according to the New Orleans Times-Picayune
("
New Orleans Saints coach Sean Payton is lead plaintiff in
Chinese drywall suit", by Rebecca Mowbray).
Peyton's high profile in New Orleans and nationally is only
one reason for selecting him as lead plaintiff. His particular
case also happens to be unusually well documented, the
Times-Picayune reports: "With more resources to get to the root
of the problem than many other people who have problem drywall
in their homes, Payton and his family moved out of their house,
then systematically took it apart. They took photos of the
evidence along the way, then stored the damaged components in a
warehouse, where KPT, the manufacturer, was able to inspect
it."
The formal complaint in the case (available
here) runs to 591 pages. Most of those pages, however, are
devoted to a long list of the parties to the suit —
383 pages just to list the 2,068 plaintiffs, and another 120
pages to introduce the defendants. Along with Knauf Gips and
its three Chinese affiliates, the suit breaks out 43
distributor and supplier defendants (listed in alphabetical
order, from 84 Lumber to Venture Supply Company), a handful of
brokers and distributors, and nearly 500 builders, developers,
and subcontractors, from Aburton Homes to Wellington Drywall
(both Florida companies).
Additional pages are taken up with a list describing which
of the smaller defendants are linked to which of the 2,000-plus
plaintiffs. Although every plaintiff in the case is suing
Knauf, only one or a few may be suing a particular drywall
contractor or builder named in the suit.
As a class action suit, of course, the case will not examine
every house involved. Instead, a handful of "bellwether" trials
are planned to establish basic facts relating to the material
and the damage it causes. The first case, a "bench trial" with
no jury set to begin in January, involves seven Virginia
homeowners whose drywall was allegedly made by Taishan Gypsum
Co. Ltd., a Chinese-owned company, reports the Sarasota Herald
Tribune
("
First Chinese drywall trial is set for January", by Aaron
Kessler).
Taishan, which is owned by the Chinese government, shows no
indication of intending to participate in the trial, reports
the Herald Tribune. "However, because of the high stakes, Knauf
Plasterboard Tianjin Co. Ltd., one of the other Chinese
manufacturers, is expected to intervene on Taishan's behalf to
present the defense," the paper reports. "Knauf Tianjin itself
will be the subject of the next bellwether trial -- the first
with a jury -- in late February."
It's too early to tell what recourse homeowners whose
drywall was made by other Chinese manufacturers may have in the
court. But Judge Eldon Fallon, who presides over the New
Orleans court where the thousands of federal cases are being
consolidated, is clearly aware that the case involves many more
drywall makers. On the court's website for the Chinese drywall
"Multi-District Litigation" is a
page of links to photos of the distinctive identifying
markings for 26 different versions of Chinese-made drywall
— including 11 types whose makers are
unknown.