Thursday, April 2, 2009

Chinese drywall spurs lawsuits and problems

ORLANDO, Fla. – April 2, 2009 – Drywall imported from China continues to make headlines nationwide, and a growing number of lawsuits have been filed in Florida. In response to the problem, FAR’s Business Forms Forum Task Force is considering a new form that addresses Chinese drywall problems. Task force members are slated to discuss the issue again on April 6.

Attorneys with Higer Lichter Givner, The Blumstein Law Firm and Podhurst Orseck have filed a federal class action lawsuit on behalf of Florida homeowners Janet Morris-Chin and Dajan Green. They’ve targeted Knauf Plasterboard Tianjin Co. Ltd., and the foreign company that distributed that company’s drywall within the United States, Rothchilt International Ltd.

Drywall manufactured in China was used in U.S. homes between 2004 and 2007. According to the lawsuit, toxic chemicals that emanate from the drywall have damaged houses, fixtures and personal property. Members of the class action are also seeking medical monitoring for any adverse effects of prolonged exposure to the toxic chemicals.

“We have filed a national class action because more than 60,000 homes in 13 states are believed to have defective Chinese drywall,” says Victor M. Diaz with Podhurst Orseck. “We anticipate that when the Consumer Products Safety Commission completes its investigation, this product will be recalled across the country. This could be potentially one of the largest product liability cases related to home construction in U.S. history.”

Morris-Chin and Green purchased their home in Homestead, Fla. Shortly afterward, they noticed damage from the defective drywall: an air-conditioning coil was black and iced over when it should have been copper-colored and ice-free; and two home computers stopped working and the nearby wiring was covered in black soot. The family also developed physical problems, including respiratory ailments and headaches.

So far, the Florida Department of Health has received more than 100 complaints concerning the Chinese drywall and health concerns. Lawsuits are being filed in Florida, Alabama and Louisiana, while residents in Mississippi, Virginia and California have also reported problems.

On Monday, U.S. Sens. Bill Nelson, (D-Fla.), and Mary Landrieu, (D-La.), proposed legislation seeking a recall and an immediate ban on tainted building products from China.

© 2009 FLORIDA ASSOCIATION OF REALTORS®

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