Norfolk Personal Injury Lawyer Blog

CPSC Releases Updated Remediation Guide for Homeowners

The Consumer Product Safety Commission (CPSC) and the Department of Housing and Urban Development (HUD), have released an updated remediation guide for homeowners with defective Chinese drywall.  The new guide lists the following to be replaced:

• all problem drywall
• smoke and carbon monoxide alarms
• electrical distribution components, including receptacles
• switches and circuit breakers
• but not necessarily wiring or fusible-type fire sprinkler heads

The two agencies believe that this guide will allow homeowners to remediate their homes at lower costs than previous guidelines.

Remediation Guidance for Homes with Corrosion from Problem Drywall as of September 15, 2011

Florida Residents May Opt Out of Banner Supply Co Class Settlement

On Monday, Broward County Circuit Judge Charles Greene, ruled that victims of defective Chinese drywall can file a separate lawsuit against the Miami-based distributor Banner Supply Co. if they are not satisfied with the $54 million Banner class settlement.  The Banner class settlement affects about 2,000 Florida homeowners, however the number of victims across the south who are entitled a share of the class  settlement is still unclear.

According to BizJournals.com, Judge Green’s order says that every plaintiff must file a notice about whether to be included in the settlement class or not.

Colson Hicks Edison, a Coral Gables-based law firm who is handling the settlement has warned that additional lawsuits against Banner Supply Co would cause the company into bankruptcy.  Ervin Gonzalez, an Attorney at Colson Hicks Edison, believes that it is unwise to opt out of the settlement.  On the other hand, Miami attorneys David Durkee and Victor Diaz believe that the class settlement will not provide enough money to each victim to repair their homes.

Banner Supply Co. supports the class settlement but opposes the option to opt out because this will mean more individual lawsuits for the company.  Banner is also suing the German company Knauf Gips for $100 million, alleging they knew about the odor and corrosive nature of the drywall.

$54.5 Million Chinese drywall settlement in Florida

Tuesday a Chinese drywall class-action lawsuit was settled for $54.5 million, which will cover the remediation of 2,000 to 3,000 homes in Florida.

According to the Miami Herald, Miami based supplier Banner Supply sold 1.4 million sheets of contaminated Chinese drywall to builders in Florida and has agreed to pay these homeowners in the settlement.

FL Judge rules Teachers Insurance Co. to cover Chinese Drywall damage

A Hillsborough County Circuit Judge ruled that a family’s home damaged by the defective Chinese drywall should be covered by their homeowners insurance policy.

According to an article in the Miami-Herald, Judge Robert Foster said that he found no exclusion in Craig & Melissa Walker’s insurance policy. The Walkers sued the Springfield, IL based company- Teachers Insurance Co. for refusing to cover their damages caused by defective Chinese drywall.

The Judge Foster said that the drywall was not “defective” because it served its purpose as drywall, however it also emits a corrosive gas. The policy covers smoke damage, and Judge Foster interpreted smoke to be the same as gas.

“The court finds that the ordinary meaning as found in a Merriam-Webster dictionary, defines ‘smoke’ as a ‘suspension of particles in a gas.’ “

He went on to say, “The court has applied the definition that allows coverage, which is at least as reasonable as the definition that might exclude coverage.”

CPSC updates Chinese drywall remediation guidelines no longer recommending replacement of wiring

The Consumer Product Safety Commission (CPSC) and the US Department of Housing and Urban Development (HUD) released revisions to their Chinese drywall remediation guidelines March 18, 2011. 

The most noteworthy change to their remediation guidelines is that the complete removal of electrical wiring in homes contaminated with the defective Chinese drywall is no longer recommended.  According to an article in NOLA.com, the decision came after the Scandia National Laboratories in New Mexico simulated 40 years of electrical wire exposure of the corrosive sulfide gases found in the problem Chinese drywall, but found no safety risks. This decision could greatly reduce the cost of remediating affected homes.

The replacement of receptacles, switches, ground-fault circuit interrupters, and circuit breakers is still recommended due to corrosion of exposed contact surfaces.

According to NOLA.com, it is unclear if the Chinese drywall homes chosen for the Knauf remediation pilot program, which calls for the replacement of all electrical wiring, will be affected by these changes. 

The CPSC has received approximately 3,810 reports of problem drywall in 42 states.

Click here to see updated CPSC Chinese drywall remediation protocol

Inspectors travel to China; Chinese officials interfere with drywall investigation

According to an article published on ProPublica entitled “China Plays Tug-of-War with U.S. Inspectors over Drywall,” the United States’ investigation of defective Chinese drywall has been an everlasting “tug-of-war” battle between US investigators and the Chinese manufacturers and their government. It has even gone as far as a Chinese official attempting to force a piece of the drywall from an American inspector’s grasp.

The investigation into contaminated Chinese-made drywall is the largest product investigation the Consumer Safety Product Commission (CPSC) has ever conducted. Although it has been almost 2 years since this all began, the CPSC still does not know what causes the sulfur gases to be released.

A CPSC team traveled to China last year to investigate the manufacturing plants and gypsum mines. According to the Herald-Tribune, Chinese officials drastically interfered with the investigation. Chinese officials would rush the American investigators through sites, avoided questions, and even tried to stop attempts to take samples. They even went as far as ordering employees at a Chinese mine to encircle the Americans to block the entrance as an intimidation tactic.

The ProPublica article also stated that the team of investigators was denied even the most basic information about the chemicals and processes being used to manufacture the drywall. At one point, some of the team members went to vendors to purchase the drywall directly, and were told that a certain brand of drywall smelled so bad contractors refused to buy it.

Manufacturing Plant #1 – The team first stopped in a city located within the Shandong province where Taishan Gypsum Co. and Knauf Plasterboard Tianjin received some of their materials. This was also where Tiashan’s manufacturing plant is located.

During their visit, many of the team’s questions were avoided. The team also made a few disturbing observations. The plant was very dirty, equipment was not labeled, and it was very unclear as to how the quality of the material was being monitored.

Gypsum Mine #1 – Resistance to cooperate intensified during the second stop at a gypsum mine. When the American team of 5 stepped off of the bus they were encircled by at least 50 plant employees who proceeded to block the entrance and take pictures of the team. The team planned to be at this location for several hours, but was rushed through the site. They were only there for about 30 minutes.

Gypsum Mine #2 – The second gypsum mine they visited in Shandong province was overwhelmed by the smell of sulfur, as well as the smell of live-stock. The team asked where the live-stock smell came from and were told that there was a farm nearby however, there was no farm in sight.

The team was very displeased with the processes being used to separate the materials in the mine. The materials were being separated by hand which meant that the gypsum was not being properly tested to see if it was pure enough to be used to produce drywall. When the team of investigators asked for a sample, they were handed a piece of gypsum that looked nothing like the piles being sorted.

Manufacturing Plant #2 – This second manufacturing plant used a type of gypsum called flue gas desulfurization or FGD gypsum. This gypsum is produced from coal ash. This method is very popular in China and the United States because it is abundant and cheap.

The team wanted to know how the plant kept track of where the coal ash came from. In the US, deliveries come with certificates that specify the composition of the gypsum. What they were told was startling. They were told that the gypsum came from five different power plants and was dumped into one big pile and that there was no documentation on the materials.

Last Manufacturing Plant – The last manufacturing plant they visited was located in the city of Tianjin of Beijing. This is where Chinese subsidiary Knauf Plasterboard Tianjin, of the German based company was located.

This facility provided the team with a full list of chemicals used in their product, and this plant was significantly more modernized than the previous plants visited. However, despite these optimistic factors, this plant was also piling their materials together which did not allow them to keep track of its origin.

The End of the Investigation- During the last few nights of their stay, some of the investigators slipped into town to try and get more information. They went to vendors to purchase sheets of drywall to sample. The investigators also gathered valuable information from these vendors who did not know why they were being questioned by the Americans.

The CPSC has not received any additional information from the Chinese government since the trip 14 months ago.

On a more positive note, the Knauf Plasterboard Tianjin “pilot program” settlement to repair 300 homes in several different states is set to begin early next year.

Knauf Tianjin makes settlement to repair 300 homes in Florida, Louisiana, Alabama, Mississippi

Knauf Plasterboard Tianjin, one of the manufacturers responsible for producing defective Chinese drywall, has agreed to repair up to 300 homes in several different states as part of a remediation “pilot program.” If all goes well, this could be just the beginning.

Homeowners whose homes meet the criteria agreed upon will have the insides of their homes gutted, their families will be relocated, and attorney’s fees shall be paid for by Knauf Tianjin and several other companies who settled on the negotiation.

The homes will be repaired according to the protocol developed by the U.S. District Court under Judge Eldon E. Fallon. Essentially, all of the drywall, wiring, air conditioning system components, and other components will be removed and replaced.

Eligible homes:

• Must contain “substantially all”, defined as 95% or more, of Knauf Plasterboard Tianjin (KPT)
• Must be located in Florida, Louisiana, Alabama, or Mississippi
• And must NOT contain any other type of contaminated Chinese drywall

Some Attorney’s are hesitant to take the agreement because homeowners in South Florida, specifically Miami-Dade County, may have difficulty meeting the 95%+ KPT drywall eligibility requirements due to the way drywall was distributed.

According to the Herald Tribune, the federal court has determined the remediation cost to be more than $80 per square foot for an average-size home. They hope to get a better idea of this cost once the remediation protocol has been implemented.

This settlement gives hope to many homeowners who thought their lawsuits would take years before they received any type of help. Knauf Plasterboard Tianjin is the only defective Chinese drywall manufacturer who has responded to U.S. court proceedings, reports the MiamiHerald.

1. View the actual “Settlement Agreement for the Demonstration Remediation of Homes with Knauf Plasterboad Tianjin Drywall“
2. HUD and CPSC Issue Guidance on Repairing Homes With Problem Drywall
3. ChineseDrywallClaims.com
4. Free 5 Step Guide to Determining if your home contains defective Chinese drywall

Chinese drywall tax relief from IRS

The Internal Revenue Service (IRS)  has announced that it will be providing a tax break for Chinese drywall victims, which will allow homeowners to make a deduction for the cost of repairs and damaged appliances.  The deduction will be considered a “casualty loss,” which is a claim usually made by those affected by events such as natural disasters. 

The tax break will provide some relief to those who have deicded to repair their homes on their own, however their are some restrictions:

• a deduction is allowed only if the amount exceeds $500
• deductions are allowed on amounts that exceed 10% of the taxpayers adjusted gross incomes
• if you do not have a claim or a pending claim for reimbursement through property insurace, litigation, or some other source, you may claim the full tax break
• if you do have a pending claim, you are eligible to claim a loss for 75% of the unreimbursed amount paid for damages

To review the actual policy and its procedures provided by the IRS, Click Here

Want to learn more about the Chinese Drywall Crisis?
Visit our Chinese Drywall Blog TheChineseDrywallLawyer.com

Chinese Drywall Signs & Symptoms

Chinese drywall is a devastating problem homeowners across the country are being forced to handle in this tough economic period. If your home is infested with toxic Chinese drywall, it is critical to get highly qualified representation to start an immediate investigation, so that you can make a recovery for your damaged home.  Don’t let your dream home become a permanent nightmare.

Chinese Drywall Signs & Symptoms
Frequent replacement of air conditioning systems or refrigerator components (such as air coils) may be a sign that your home is contaminated. DANGER: If you have experienced loss of “freon” or refrigerant from your a/c system, it may have leaked into your home from sulfur eaten pinholes in your equipment.

• a strong smell of sulfur / “rotten egg-like” odor
• frequent failure of electronics and appliances
• frequent failure of electrical and piping systems, such as air conditioning units (coils)
• Although not proven to be directly linked to defectice drywall, common health symptoms that were reported include:
  • nose bleeds
  • respiratory problems
  • headaches
  • sinus problems

Download our Free 5 Step Guide and investigate your home for Chinese drywall.
www.FreeChineseDrywallReport.com

Other Resources:
CPSC: Chinese Drywall Information Center
HUD: US Department of Housing and Urban Development

The Chinese Drywall Blog
Chinese Drywall Facebook

U.S. Senator Directly Questions Chinese President On Drywall

U.S. Senator Bill Nelson of Florida says that he raised the issue of imported toxic drywall with Chinese President Hu Jintao during a break in this week’s nuclear security summit in Washington, according to the Sarasota Herald Tribune.

The senator’s website reports on the exchange:

President Hu through a translator pledged to investigate – to “look into it” immediately, Nelson said. “If we can get the top government official of China working on this,” Nelson said, “then that’s where we’re going to get the money to make these homeowners whole.”

The website claims that interchange was the first time that the matter was broached directly with President Hu.

Homeowners in Virginia, Florida, and Louisiana have been particularly hard hit by toxic drywall. Last week, in the landmark first Chinese drywall lawsuit that was resolved in federal court, seven Virginia families represented by Attorney Serpe received a $2.6 million court judgment yesterday against Taishan Gypsum Company Ltd., a Chinese state-owned drywall manufacturer.

If your home contains Chinese drywall, or you suspect that it might, you need to know your legal rights immediately. Do not hesitate to contact the lawyers at the Law Offices of Richard J. Serpe, P.C. for a no-obligation Virginia Chinese drywall consultation, Toll Free 877-544-5323.

Virginia Chinese Drywall Homeowners Awarded $2.6 Million

The seven Virginia families who sued for Chinese drywall damage to their homes received a $2.6 million court judgment yesterday against Taishan Gypsum Company Ltd., a Chinese state-owned drywall manufacturer. This ruling was the first  of many pending cases from around the country that have been consolidated in New Orleans District Court under Judge Eldon E. Fallon.

As quoted by Virginia Lawyer’s Weekly, Attorney Serpe, who represented the Virginia plaintiffs, called Judge Fallon’s decision “monumental.” He also told the Wall Street Journal that it “gives tremendous guidance and…goes well beyond the seven families that were involved,” because it will serve as a template for the resolution of the many other pending toxic drywall cases.

The Wall Street Journal further explains:

Judge Fallon ordered Taishan Gypsum, which never answered the complaint nor appeared at any U.S. hearing, to remove and replace all the drywall, copper plumbing, air conditioning and ventilation units, insulation and electrical wiring, as well as flooring in affected homes.

The judge also ordered Taishan to pay for the relocation of homeowners for four to six months while their homes are being repaired, even in homes only partly built with tainted material. Judge Fallon set aside health claims for later trials.

In his 108-page decision, Judge Fallon wrote in part…

[T]o make the Plaintiff-intervenors whole, they must be awarded a remedy which replaces all drywall, the electrical, electronic, and HVAC systems in the home, copper pipes in the home, and other copper and silver components in the home. The remedy also must provide a written guarantee to the owner from a certified environmental company that the home is free of contamination and damaged corroded components. Furthermore, in order to make the plaintiff intervenors whole, they must be awarded compensation for damaged personal property and other compensable damages as specified herein.

Judge Fallon’s opinion also contains a detailed discussion of the harm each family suffered and how he calculated the specific damage awards.

Local Norfolk TV aired this report on this court ruling:

CPSC offers guidance: completely remove defective drywall

We recently reported on the issuance of a guidance release from federal authorities for homeowners affected by tainted Chinese drywall.  If you missed that article, you can review it here.  The release (from last Friday) can be viewed here.

Essentially, the guidance releases came from the Consumer Product Safety Commission (CPSC) and the U.S. Department and Urban Development (HUD) – two agencies at the forefront of addressing consumer remediation guidance.  We’ve also reported on legislative proposals that will aim to change policies in various aspects.

Our previous article primarily focused on HUD guidance and information dissemination; today’s article will focus on matters relevant or attributable to the CPSC.

In a joint release you may view here, the head of CPSC (Inez Tenenbaum) is quoted as referring to the guidance as evidence of a “clear path forward.”  She said, “We have shared with affected families that hydrogen sulfide is causing the corrosion.  Based on the scientific work to date, removing the problem drywall is the best solution currently available to homeowners.  Our scientific investigation now provides a strong foundation for Congress as they consider their policy options and explore relief for affected homeowners.”

The CPSC and other agencies have been involved in testing Chinese drywall samples for the presence of harmful compounds and continues to carry out such studies.  The federal agency has stated they will proceed to release scientific findings/studies as they become available.  One aspect that has surfaced thus far is that in the agency’s view, there is a relationship between some Chinese drywall and corrosion in appliances and household components.

For a detailed look at studies analyzing emission samples check out the CPSC staff report here.