The state of Louisiana is the latest to wade into the Chinese drywall battle, as Louisiana Attorney General Buddy Caldwell filed suit today in Orleans Parish against multiple entities associated with Knauf Plasterboard Tianjin (KOT), the Chinese company that manufactured most of the drywall at issue.
Caldwell's suit also names other international and domestic manufacturers, distributors, importers of toxic Chinese drywall as well as several builders, alleging the State of Louisiana has and will continue to suffer economic loss because of the defective and toxic Chinese drywall.
Caldwell said gases released by the drywall are causing various health problems, including difficulty breathing, asthma attacks, respiratory problems, coughing, recurring headaches, heart disease, neuron-behavioral problems, sore throats, throat infection, eye irritation, irritated and itchy skin, bloody noses, runny noses, allergic reactions and sinus infections.
Additionally, Caldwell said, the corrosive effects of the drywall on wiring and household appliances is creating potential fire hazards.
He alleged that the drywall creates fire hazards in two different ways. First, the corrosion of electrical wiring, in electrical equipment and gas lines can result in electrical or gas fires. Second, the corrosive effects of the drywall is damaging the wiring in smoke detectors, fire alarms, and sprinkler systems, possibly causing them to malfunction.
Over 1.1 million sheets of Defendants drywall imported through the Port of New Orleans was used in the construction, repair, or rebuilding of Louisiana homes and buildings after Hurricanes Katrina and Rita since 2005 as well as in new home construction.
The suit alleges the state has suffered the loss of expected state income tax, sales tax, property tax and other revenues as well as costs related to remediation and disposal of contaminated drywall.
Caldwell noted that his suit was not filed to pursue private claims of homeowners. He said individual homeowners should contact a private attorney of their choice should they believe they have Chinese drywall in their home.
Lots of litigation
Caldwell's lawsuit is the latest in a virtual blizzard of litigation. A gargantuan class action complaint was filed in a Louisiana federal court in December. It is being brought on behalf of approximately 2,100 individual residents of Alabama, Florida, Louisiana, and Mississippi, represented by a number of firms.
The action's lead plaintiff is none other than Sean Payton, head coach of the New Orleans Saints. The 45-year-old coach had to move his family out of their house in Mandeville, a suburb of New Orleans, after computers and other electronics in his house began to fail and his family came down with mysterious illnesses. Payton was one of the first people in the state to report drywall-related problems, which factored into his being named lead plaintiff.
Daniel Becnel, one of the plaintiffs' attorneys, said that Payton had to deal with the issue while gearing up for training camp and the 2009 season, compounding already considerable stress.
Payton's house, like most affected by the problem, was built in the wake of Hurricane Katrina. The storm led to a construction boom that left American-manufactured drywall in short supply, opening the door to cheap foreign wallboard. The defective drywall emits an egg-like sulfur smell, corrodes metal fixtures, and can cause health problems ranging from wheezing to asthma and even pneumonia. The bulk of affected homes are those built or remodeled between 2004 and 2008.
KPT's lawyer, Kerry Miller, maintains that no one outside of Alabama, Florida, Louisiana and Mississippi is affected, because the drywall was shipped exclusively to ports in Louisiana and Florida. But complaints have been lodged in no fewer than 32 states, and an investigation by advocacy group America's Watchdog indicates that the drywall has been imported to "potentially all regions" of the country.
America's Watchdog suggests that complaints have so far been concentrated in the Southeast because of that region's high humidity, which could accelerate the wallboard's tendency to deteriorate metal and human health. The group thinks the problem is so widespread that it needs to be dealt with under the federal Superfund statute, which sets aside money for cleanup of toxic sites and then seeks reimbursement from responsible parties.
The complaint includes 15 counts, including negligence, breach of contract, breach of express and implied warranties, nuisance, unjust enrichment, and violation of several Louisiana consumer protection laws.
