We are keeping a close eye on several cases in
federal court in Louisiana, where a judge recently awarded $164,000 for
the costs of removing Chinese drywall from a home and replacing the
wiring, plumbing and appliances that had been ruined by the defective
product.
This decision sent a clear signal to the manufacturers,
suppliers and builders that the courts are going to impose stringent
requirements for the remediation of the homes that have been affected.
This ruling comes weeks after a $2.6-million judgment for seven
Virginia families – more than $370,000 per homeowner – against a
different drywall manufacturer from China that refused to participate in
the trial.
It appears that KPT, the Germany-based company that manufactured the
drywall in China that was involved in the Louisiana case, is now
considering the possibilities of appealing the ruling and attempting to
settle with some of the builders that used its defective drywall. For
the builders, settlement offers from this or other manufacturers could
be enticing, as the funds would be paid upfront before the remediation
work is performed. However, it appears that the repairs for each
affected home are going to be costly, and relocation costs for the
residents will also add significant sums.
Some construction industry experts have estimated that as many as
100,000 U.S. homes have the defective Chinese drywall, the majority of
which are located in Florida and Louisiana