Tainted Chinese drywall must be removed from over 3000 homes in U.S.

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NEW ORLEANS " Thousands of U.S. homes tainted by Chinese drywall should be completely gutted, according to new guidelines released Friday by the Consumer Product Safety Commission.

The guidelines say electrical wiring, outlets, circuit breakers, fire alarm systems, carbon monoxide alarms, fire sprinklers, gas pipes and drywall need to be removed.

"We want families to tear it all out and rebuild the interior of their homes, and they need to start this to get their lives started all over again," said Inez Tenenbaum, chairwoman of the commission, the federal agency charged with making sure consumer products are safe.

About 3,000 homeowners, mostly in Florida, Virginia, Mississippi, Alabama and Louisiana, have reported problems with the Chinese-made drywall, which was imported in large quantities during the housing boom and after a string of Gulf Coast hurricanes.

The drywall has been linked to corrosion of wiring, air conditioning units, computers, doorknobs and jewelry, along with possible health effects. Tenenbaum said some samples of the Chinese-made product emit 100 times as much hydrogen sulfide as drywall made elsewhere.

The agency continues to investigate possible health effects, but preliminary studies have found a possible link between throat, nose and lung irritation and high levels of hydrogen sulfide gas emitted from the wallboard, coupled with formaldehyde, which is commonly found in new houses.

U.S. Sen. Bill Nelson, D-Fla., said now the question is who pays to gut the homes.

"The way I see it, homeowners didn't cause this. The manufacturers in China did," Nelson said. "That's why we've got to go after the Chinese government now."

Southern members of Congress have sought to make it easier to sue Chinese manufacturers and to get the Federal Emergency Management Agency to help homeowners pay for costs not covered by insurance. They also say the U.S. needs to pressure the Chinese government, which allegedly ran some of the companies that made defective drywall.

About 2,100 homeowners have filed suit in federal court in New Orleans against Chinese manufacturers and U.S. companies that sold the drywall. U.S. District Judge Eldon Fallon is expected to rule soon in a pivotal case against the Knauf Plasterboard Tianjin Co., the only Chinese company that has responded to U.S. suits.

Separate claims by thousands more homeowners against Chinese manufacturers are pending, said Jordan Chaikin, a Florida lawyer whose firm represents about 1,000 homeowners.

They are "continuing to live in their homes with Chinese drywall, patiently waiting for this thing to be resolved so they can move on with their lives," Chaikin said. "We're not waiting for the government to move quicker than we are in the courts."

In some cases, homebuilders have paid to gut and rewire homes. In others, homeowners who can afford it have paid for the work themselves. Knauf Plasterboard has offered to pay for remediation in homes where its defective drywall was installed.

Daniel Becnel, a New Orleans lawyer representing Chinese drywall plaintiffs, including Sean Payton, the head coach of the Super Bowl champion New Orleans Saints, said the government guidelines issued Friday were "word for word what our experts said."

He also said Congress should give homeowners grants to cover the cost of home gutting.

"Get these people out of this environment," he said. "You're making these people sicker and sicker and sicker. You will have long-term effects."

In Cape Coral, Fla., Joyce Dowdy, 71, and her husband Sonny, 63, plan to move out of their $150,000, 1,600-square-foot home while it is gutted to get rid of tainted Chinese drywall.

Joyce Dowdy said she suffers from nose bleeds and her husband has a persistent cough. They blame the drywall.

"We can't live like this anymore," Joyce Dowdy.

They're borrowing money to do the gutting, which means that instead of a mortgage-free retirement they will be paying monthly bills cover the costs of repair.

"It's costing us as much as we paid for the house," Joyce Dowdy said. "But we can't just walk away ... Our house is worth nothing at the moment."

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first heard the story about a year ago, despicable that his was allowed to happen

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that 3,000 number is certainly lowball. Suspect drywall went into about 100,000 homes, and it depends upon how bad is was how long before the problems begin.

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@hawkeye10,

my understanding was it was worse in areas where the humidity was high, as moisture reacts with the components used to produce the gypsum

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@djjd62,

worse as in the the smell and corrosion come out earlier.....but homes up north are more airtight so this stuff might be causing health problems right now but no one knows that it is the drywall. We will not know for years how many homes need to be stripped.

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There is also no coverage under insurance policies. This peril was noticed some years ago and underwriters have been specifically excluded coverage for this on their insurance policies (just like lead paint and asbestos).

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@Heeven,

Quote:

There is also no coverage under insurance policies

Um, as soon as the insurance companies decide you have bad drywall you will find yourself without insurance.

1 Reply

http://www.newsinferno.com/archives/19223

Judge Hears Opening Statements in Chinese Drywall Test Case
Date Published: Thursday, March 18th, 2010

Chinese drywall has made the dream of home ownership a nightmare for one Louisiana family. That’s what the judge overseeing the first contested Chinese drywall trial in a New Orleans federal court was told yesterday during opening statements by the plaintiffs’ attorney. The case is intended as a bellwether, or test trail, to help determine property damage issues in other cases against manufacturers.

More than 2,000 families have claims pending in the Chinese drywall multidistrict litigation before U.S. District Judge Eldon Fallon. Since late 2008, the Consumer Products Safety Commission (CPSC) has received about 3,000 reports from residents in 37 states, the District of Columbia, and Puerto Rico regarding defective Chinese drywall. Gases emitted from Chinese drywall are being blamed for significant property damage, including damage to HVAC systems, smoke detectors, electrical wiring, metal plumbing components, and other household appliances. These gases also produce a sulfurous odor that permeates homes, and cause metals, including air conditioning coils and even jewelry, to corrode. People living with Chinese drywall have also suffered eye, respiratory and sinus problems that may be linked to the gases.

The drywall problems have forced many people out of their homes, and some families are dealing with the heavy financial burden of paying both rent and mortgage payments. Those unable to afford additional rent have no choice but to stay in their potentially hazardous homes. Homeowners insurance does not cover damage from Chinese drywall, and builders have estimated that remediating a home with Chinese drywall could cost as much as $100,000.

The first bellwether trial names Knauf Gips and Knauf Plasterboard Tianjin Co. as lead defendants. The lawsuit was filed on behalf of Tatum and Charlene Hernandez of Mandeville, Louisiana. The case is being heard by Judge Fallon without a jury.

The Hernandez family claims that their 1,688-square-foot home was ruined by 180 boards of defective Chinese drywall. Since moving into the home in 2006, members of the family have suffered from headaches and respiratory problems. Their insurer has denied their homeowners’ claim and the builder hasn’t offered any help. The family remains in the home because they can’t afford to pay both rent and mortgage.

While defendant Knauf acknowledges that its drywall was defective, the company disputes the amount of money the Hernandez family is seeking for remediation. According to a report in Business Week, all parties in the suit agree on the need for removing and replacing drywall, moldings, carpets, a granite countertop and electrical switches and outlets. Other claims, such as wiring, appliances and personal property and the cost of repairs are in dispute.

It will be up to Judge Fallon to determine the nature and the scope of the remediation and the cost of repairs. Questions of health issues from the drywall will be handled in a later phase of the litigation.

A decision on what needs to be done to fix the Hernandez home and how much it will cost could help establish values that will guide settlement discussions in the rest of the cases.

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@Heeven,

okay I've just noticed something (obviously have been oblivious to it before) but the ads at the end of this thread are to do with Chinese drywall and themes relating to the subject matter of this thread. Never paid any attention to the ads on this site before but that jumped out at me.

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Here's a link to the Consumer Protection Agency's Drywall Information Center, if anyone needs the info for their circumstances:

http://www.cpsc.gov/info/drywall/index.html

It also has a link to the CPSC's announcement so you can read the whole thing:

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I have always had this feeling, deep in the pit of my stomach, that tainted Chinese drywall would haunt us some day.

1 Reply

@hawkeye10,

Yep I know. When more than a few claims started to surface years ago, the insurance underwriters put it in their radar screen and started excluding it from their forms.

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@gustavratzenhofer,

Are you an insurance underwriter?

1 Reply

@Heeven,

Quote:

March 26, 2010

As of late, home insurance companies have been making it a habit to cancel policies on those who have had issues related to Chinese drywall. If not cancel coverage, at the very least they are increasing rates. Under two proposed laws in Louisiana, this would no longer be allowed.

http://www.thechinesedrywalllawyer.com/chinese-drywall-and-home-insurance-problems/

gotta love insurance companies....builders carry insurance for defects and liability, but of course insurance companies are refusing to pay on those as well. A homeowner could sue a builder but with the economy that is like getting blood from a stone. That is why we are going after the Chinese government. If the Chinese dont pay, Uncle Sam will have to.

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@hawkeye10,

The same folks who decried government involvement in their health insurance issues will now be complaining that the government is not involved enough in their homeowner's insurance issues.

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@hawkeye10,

I know, I am in the industry and every time an issue like this comes up - quick! exclude it! I used to work for a large construction company and it was ridiculous trying to get cover that actually covered our operations! We finally had to set-up our own captive insurance group and self-insure. The Chinese government are never going to pay out to rectify or make whole the injured parties - there is nothing to threaten them with as punishment if they don't and besides they don't care. Currently the NFIP (National Flood Insurance Program) has lapsed and just when there have been incomparable floods around the country. What excellent timing! The government is feeling the pain from stop-gapping where insurance companies refuse to provide cover - from terrorism cover to flood cover, however some perils are just not insurable. The trick is to know what is and isn't covered. I recommend an All-Risks/Special Risks Policy where any exclusions HAVE TO BE written. That way, everything is covered unless they specifically exclude it on the policy form/endorsements. Of course, doesn't stop them from later endorsing the policy to exclude something or cancelling cover. It's like everything else. They will take your money until you have a claim and then they don't want to know you.

Anyhoo, off to sell some insurance to some unsuspecting poor bastard!

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@Butrflynet,

Quote:

The same folks who decried government involvement in their health insurance issues will now be complaining that the government is not involved enough in their homeowner's insurance issues

I am not so sure....in my experience even hard core conservatives tend to agree that product safety is a critical task of government. My guess is that the universal take away will be that government failed.

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@Butrflynet,

What a double-whammy for these people. First they have to replace their walls, etc., etc., then someone will get rather high medical bills for the illnesses and pain caused by this crap. A pox on those Chinese factories, and so much for providing jobs for other countries through "outsourcing."

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Actually in defense of insurance companies, they underwrite each renewal (or are supposed to) which means they get new applications each year and re-review a properties exposures to create the renewal premium. It is at that time that they are introducing property owners to their renewal policy form that specifically excludes Chinese Drywall. The insurance carrier is not required to provide cover as expiring to each and every policy holder. It is very unlike healthcare insurance in that respect. The insurance companies often update and change their policy forms from one year to the next so it is not unusual to see something added or something taken away since the last year or the year before. They do an analysis of claims reported/filed/paid out over the past years and update their forms in incorporate those areas they are losing money. Makes sense from a business standpoint.

Given the fact that insurance companies are in business to make money (a profit) it is simply stupid of them not to try and mitigate their risks. What bothers me is, the reputation that insurers have - of denying every claim (some true some not so true). I would prefer the industry be fair and pay out where coverage really was paid for by the consumer.

To their credit, most insurers stepped-up after 9-1-1 and paid out some humongous claims where they had not really provided the coverage for. It was in their reputations best interests to do so. After 9-1-1 insurers but a terrorism exclusion in their policies and uncle Sam stepped in to "back" claims caused by terrorism so the carriers would add the coverage back into the policies for an additional premium.

Given the enormity of that incident, it is unlikely that Uncle Sam can step in to help out for each and every peril. Even our government have to draw the line somewhere.

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@Heeven,

Quote:

Given the fact that insurance companies are in business to make money (a profit) it is simply stupid of them not to try and mitigate their risks. What bothers me is, the reputation that insurers have - of denying every claim (some true some not so true). I would prefer the industry be fair and pay out where coverage really was paid for by the consumer.

you have got to be kidding me.....the purpose of insurance is to pool risk and then we have a homeowners insurance system that is specifically set up so that the insurance companies can shed pre existing conditions risk EACH YEAR.

This is Nuts!

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Tainted Chinese drywall must be removed from over 3000 homes in U.S.

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