It's official: Chinese drywall attacks and severely damages
copper and silver components of homes where the drywall is
installed, and to correct the problem, all the drywall in the
home must be removed and replaced, along with wiring, plumbing,
air conditioning equipment (including ductwork), and interior
finish components such as trim, flooring, cabinetry, and
carpeting. That's the ruling from U.S. District Court Judge
Eldon Fallon in the first "bellwether" trial in the
Multidistrict Litigation proceedings for homes containing
Chinese drywall. In houses where Chinese drywall is mixed with
non-corrosive U.S.-made drywall, the judge ruled, all drywall
from whatever source must be stripped, and all wiring,
plumbing, and air conditioning systems throughout the house
must be replaced.
The case is called "Germano, et al. v. Taishan Gypsum Co.
Ltd., et al., case no. 09-6687," and pits seven Virginia
homeowners against the Chinese government-owned manufacturer
Taishan Gypsum.
Judge Fallon's decision in the case is posted at the
court's website. In the published ruling, the judge walks
through a point-by-point description of the damage the drywall
causes to various home components, explaining why the only
appropriate remedy is to completely remove and replace the
affected building materials. The court rejected all suggestions
by drywall manufacturer Knauf Tianjin, appearing on behalf of
the absent Taishan Gypsum, that the problem might be solved by
removing only certain pieces of drywall or by cleaning copper
components rather than replacing them; this partial fix, the
judge determined, would be ineffective as well as too
expensive, and would not suffice to make the homeowners
whole.
The judge issued a finding of fact that Chinese-made drywall
creates a "severe industrial" corrosive environment inside the
home, as defined in a standard created by Batelle Laboratories
— the most severe of four levels of corrosion risk set
forth in that standard. The corrosive gases emitted by the
drywall can penetrate wiring insulation, he stated, and once
the process has begun, corrosion caused by deposits on original
wiring, plumbing, and air conditioning coils would continue
even after all drywall has been replaced. Furthermore, the
judge ruled, replacement of selected portions of wiring,
plumbing, and air conditioning is not practical or
cost-effective. Accordingly, the judge ordered, remediation in
affected homes must extend to replacement of all the vulnerable
building materials. "The only economically feasible option, at
least at the present time," the judge writes, "is to totally
gut the structure, take it down to the studs and remove and
replace all wiring."
Other elements in the home that have to be removed in order
to gain access to the drywall, wiring, plumbing, and air
conditioning elements are likely to be damaged in the process,
the judge ruled, and should be replaced as part of the
remediation. This requirement applies to cabinets, carpeting,
and wood or vinyl flooring — all must go. Some tile
flooring, the judge ruled, might be able to be protected and
left in place. Wall or ceiling insulation, however, must be
replaced. Same for kitchen and bath fixtures, the judge ruled:
"Sinks, toilets and shower enclosures generally must be removed
when the drywall is removed because they are installed on top
of drywall or to enable the remediation workers to move freely.
It is more cost-effective to replaced these items than to
gently remove, safely transport and store, and reinstall at a
later date."
After removal of drywall and components, the judge ordered,
homes must be vacuumed with HEPA vacuum equipment, wet-wiped or
power-washed, and allowed to "air out" for several weeks.
The judge ruled that loss of value in the homes after
remediation could not be firmly established, calling these
economic losses "speculative." However, he ruled that
homeowners were entitled to reimbursement of their living costs
outside the home while remediation is accomplished.
The dollar damages awarded in the case apply only to the
seven homes involved in this "bellwether" example case. After a
detailed discussion of the experience of each homeowner in the
case, Judge Fallon awarded damages to each based on their
particular circumstances. In total, the seven families are
entitled to collect $2,609,129.99, he ruled.
However, there's no telling whether these families, or any
homeowners whose drywall was provided by Taishan Gypsum, will
ever collect a dime from the manufacturers. Taishan Gypsum did
not appear in court, and there is no indication so far that the
Chinese government, which owns the firm, intends to recognize
the U.S. court's authority. To date, diplomatic efforts by the
U.S. have not produced any tangible result. On the other hand,
the precedent set in the Taishan case will apply to other homes
with Chinese drywall, including drywall supplied by Knauf
Tianjin. And the parent company, German-based Knauf, may be
accountable in the U.S. because of the company's extensive
business here, which involves a wide range of building
materials. The court appears ready to consider all Chinese-made
drywall as essentially equivalent in terms of its harmful
effects: wrote the judge, "The Court was presented evidence by
both [the Plaintiffs' Steering Committee] and Knauf experts
that the chemical and physical properties of
Chinese-manufactured drywall do not differ significantly from
region to region or state to state."
Judge Fallon has already heard evidence in a second case
involving Chinese drywall supplied by German-owned Knauf
Tianjin; a ruling in that case has not yet been handed down,
but the judge has promised to act quickly.