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Another Chinese Drywall Suit Filed

Senate ponders what to do next

By Jon Hood
ConsumerAffairs.com

May 22, 2009

Chinese Drywall • Feds Hoping China Will Smooth Over Drywall Damage • Another Chinese Drywall Suit Filed • Bill in Congress Would Ban Substandard Drywall, Steel, Cement • Scam Artists Profit from Chinese Drywall Fears • Senator: Florida Faces Chinese Drywall 'Hysteria' • Senators Call for Halt to Drywall Importation • Chinese Drywall a Threat to Homeowners? --- • More Homeowners News

Another class action has been filed in the ongoing Chinese drywall saga, this one on behalf of three North Carolina homeowners who complained of illness and damage to their homes as a result of the wallboard.

Around 550 millions pounds of Chinese drywall was imported into the United States during the period between 2004 and 2006. This was in part due to a domestic shortage because of the housing boom, but construction in the wake of Hurricane Katrina also played a significant role.

The most commonly-cited culprit is Chinese manufacturer Knauf Plasterboard Tianjin Co., Ltd. (KPT), although other companies may also have imported defective drywall.

A number of other suits have already been filed in Florida, Virginia, Mississippi, Louisiana, and North Carolina. All in all, consumers in at least 16 states are affected. Florida and Louisiana appear to be the hardest-hit.

Lennar Homes, based in Miami, has already confirmed that some of its homes contain KPT drywall and has promised to take action. Lennar is the nation's second-largest homebuilder by volume.

The North Carolina suit alleges that the drywall caused several medical conditions, including nausea, sore throat, fatigue, and respiratory problems. The homeowners also say that metal products – including wiring, appliances, and utensils – were damaged by the noxious emissions from the drywall. These claims are similar to those that other homeowners have experienced.

The affected drywall tends to emit an egg-like sulfuric odor, which not only corrodes metal and leads to wheezing but which can also cause serious health problems like asthma and even pneumonia.

The suit asks the company to buy back the affected houses or pay to replace the drywall. Houses built with the defective drywall have become essentially worthless due to the hazards associated with them.

Meanwhile, the Senate Subcommittee on Consumer Protection, Product Safety and Insurance is seeking $2 million in emergency funds to expedite research relating to the problem. Additionally, an Environmental Protection Agency (EPA) study showed that Chinese drywall contains sulfur and other chemicals – including two associated with acrylic paint – not found in drywall manufactured in the United States. The EPA is now going to test both domestic and Chinese drywall under conditions similar to those in the pertinent states.

On Thursday, the Senate held hearings on the matter, hearing testimony from both federal officials and homeowners affected by the problem. While the hearing allowed senators the opportunity to understand the consequences of the epidemic, some were clearly concerned with the lack of consensus on what the next step will be.

“We’ve got to figure out what in the world these people are gonna do,” said Sen. Bill Nelson (D-FL), who has taken a leading role since the story broke earlier this year. “They can’t afford rent and paying the mortgage if they are still living in the house.”

Meanwhile, communities are taking preemptive action to ensure that homeowners in their area are not affected by the problem. The Nofolk, Virginia city council unanimously approved a measure banning the use of Chinese drywall in the city. This is the first ban approved in the United States, although more are almost certain to follow. The measure requires builders to provide proof that they are not using Chinese-made drywall; failure to do so will result in a denial of their building permit.

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