2.6 Million Awarded in Chinese Drywall Suit

A federal judge recommends that homeowners living with the corrosive drywall gut their homes to the studs.
Posted by Mai Ling at MSN Real Estate on Friday, April 9, 2010 8:14 AM

A federal judge is recommending that plaintiffs awarded $2.6 million rip out their Chinese drywall and remaining interior to the studs. (© J Pat Carter/AP)The suffering may soon be over for some homeowners living with Chinese drywall.



A judge on Thursday awarded $2.6 million to seven Virginia families for damages to their homes caused by the sulfur-emitting drywall that corrodes electrical wiring, metals and more.



But the New Orleans federal judge took the case one step further by not only recommending that the drywall be removed, but also that the homes be gutted down to the studs, according to the Sun Sentinel.

* 6 surprising findings from the Chinese drywall report

Earlier this month we wrote about the federal government urging residents living with Chinese drywall to replace the drywall as well as any other corroded household items, such as electrical components and wiring, gas service piping, fire suppression sprinkler systems, smoke alarms and carbon-monoxide alarms.



U.S. District Judge Eldon Fallon added air-conditioning systems, insulation, carpeting and most appliances to the list.

USA Today says that this is the first in a series of lawsuits concerning Chinese drywall that Eldon is presiding over, and that thousands more will be decided at the state level.



But it's still unclear how the plaintiffs will collect the the $2.6 million they've been awarded since foreign companies aren't subject to decisions made in U.S. courts.

* It's too late for families driven to bankruptcy because of Chinese drywall

Plaintiffs' lawyers have said they would try to seize U.S. vessels from the drywall company named in the suit, Taishan Gypsum Co., which USA Today says hasn't responded to lawsuits.



However, a company named in another case that Eldon presided over in March but has yet to rule in, Knauf Plasterboard Tianjin Co., has been cooperating with U.S. courts. From USA Today:


In a statement, Knauf Plasterboard said Fallon's findings in the Virginia case were "distinct from the cases against KPT." The company said it would work with federal and state regulators and others "in evaluating the concerns about drywall manufactured in China."



Despite plaintiffs' expected struggles to collect their award in the suit decided Thursday, they still could be considered among the luckier victims. At least they know where their drywall came from.

* Who are the prisoners of drywall?

According to an earlier article in The New York Times, many of the drywall sheets imported from China simply say "Made in China," and that even if homeowners could track the company that produced or imported them, many since have disbanded or simply cannot be found.



That hasn't stopped homeowners, homebuilders, contractors, drywall installers and others from filing lawsuits against Chinese drywall manufacturers as well as each other. And homeowners also are suing American drywall suppliers, insurance companies, distributors and homebuilders.

* 5 of the craziest Chinese drywall stories

But, in the meantime, The Times writes that many of the bigger homebuilders have been proactive at gutting homes of the tainted drywall, even at a cost estimated at more than $100,000.



And this is just the beginning. So far, the court cases are only dealing with the corrosive qualities of the Chinese drywall. Later this year or in early 2011, USA Today said courts could start hearing cases regarding the health effects of the drywall, which have included nosebleeds, headaches, difficulty breathing and a pervasive rotten-egg odor.

* Will Chinese drywall make you sick?

It's also expected that Congress could step in with relief for Chinese drywall sufferers after the new guidelines to rip out the drywall were issued last month by the Department of Housing and Urban Development and the Consumer Product Safety Commission.