Lawsuits over Chinese drywall piling up

The results of a government investigation into symptoms linked to the product are expected later this month.

By Mai Ling at MSN Real Estate Oct 8, 2009 12:04PM

Bill Morgan had to abandon his newly built dream home after his family began suffering symptoms linked to tainted Chinese drywall. (© Casey Templeton for The New York Times)Closure simply can't come soon enough for the thousands of homeowners who fear they are living with symptoms caused by contaminated Chinese drywall.

 

As lawsuits linked to the issue pile up at state and federal courts, including a consolidated class action that will begin in January in Louisiana, the Consumer Product Safety Commission this month plans to release the results of its investigation into problems with the drywall, according to an article in The New York Times.

 

The results are expected to include reasons why the product has caused symptoms such as headaches and difficulty breathing, and outline possible remedies. But it will likely be too late for many of these homeowners and renters.

 

The Times follows the woes of one man, Bill Morgan, who blames the tainted drywall for forcing him to move out of his brand-new dream home in Williamsburg, Va., and for his eventual bankruptcy. All the signs were there: a noxious odor throughout the house, persistent headaches and nosebleeds, corrosion of indoor metals.

Morgan had no choice but to move out, but then he was unable to keep up with his mortgage and rent, especially now that he says the property his house sits on is worth more than the home itself.

 

Although the Consumer Product Safety Commission has received more than 1,300 complaints from 26 states, The Times writes that most of the complaints are from Florida, Virginia and Louisiana, which were in the middle of post-hurricane housing booms when domestic drywall began to run short in 2006 and 2007. From The Times:

 

"There could be 60,000 to 100,000 homes that are worthless and have to be ripped completely down and rebuilt," said Arnold Levin, a Philadelphia lawyer and co-chairman of the plaintiffs’ steering committee. 

 

But the class-action lawsuit could very well lead to a dead end, since China isn't exactly known for cooperating with the U.S. judicial system, much less the U.S. itself. And tracking down the source of the drywall is another problem entirely.

 

The Times writes that in 2006 alone, China imported nearly 7 million sheets of drywall to the U.S., and although the court that will be hearing the class-action suit has identified 26 brands of drywall, 11 others simply say some variation of "Made in China."

 

Even if the source is found, oftentimes the company has simply disappeared.

 

So what's America's solution? From The Times:

Homeowners, insurers, home builders, drywall suppliers and Chinese manufacturers, if they can be identified, are often suing each other.

 

Well, at least we've managed to put a stop to the importing of any more Chinese drywall to prevent even more Americans from putting each other out of business. After all, it's not nearly as easy to get rid of a product that is installed throughout homes, compared with the recent recalls of toothpaste and pet food that have put consumers on the alert.

 

The Times says estimates put the cost of ripping out and installing new drywall and the electrical equipment attached to it at $100,000 to $150,000, a high price that apparently some builders are ready to eat to save their reputations.

But smaller companies may not be able to do the same thing, and jeez, talk about timing. From The Times:

 

"This couldn’t have come at a worse time for the industry," said Jenna Hamilton, assistant vice president of government affairs at the National Association of Home Builders.
9Comments
Mar 11, 2010 8:57PM
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SOLUTION - The United States Department of Commerce and The United States Customs Service (a part of The United States Department of Homeland Security I believe) do their job!  Refuse 100% of all imports from China until the Chinese government compensates every affected U.S. homeowner and company enough to make the repairs and properly dispose of every bit of this toxic product. Let's quit beating around the bush and force the Chinese government to take responsibility. That's the only entity with the ability to sort out which Chinese companies are responsible - not the United States government, U. S. companies, or U. S. homeowners. To claim that the Chinese manufacturers are hard to locate, or likely out of business, is just passing the buck! 

Jan 26, 2010 7:04PM
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When it comes to pointing fingers, Americans are the BEST.   Who MADE the free trade agreement? The Congressmen you and I help elected; who imported the LOW priced foreign drywalls? The AMERICAN homebuilders.  Who demanded the low cost and "AFFORDABLE" homes? The AMERICAN CONSUMERS.
Oct 26, 2009 7:40PM
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It seems that the free trade agreement is causing us a lot of pain.

The only thing that can be done is to get the word out that . . .

 

Surprise!  Deregulation isn't always a good thing.

Now we are exposed to numerous hazards that would not be a problem if we bought locally.

 

 

Oct 26, 2009 10:59AM
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One must be sure the odor is coming from the dry wall.  We had our house of 32 years professionally remodeled last year.  No new drywall, just removed the 'popcorn ceilings' and retextured the majority of the house.  The evening after the application of the 'texture', you could smell the horrible odor even in the front yard.  After several days, this rotton egg, dead body smell could be detected halfway down the street!  You cannot imagine what our neighbors thought was going on.  The drywall contractor sprayed 'bad' texture.  This happens when they do not clean and bleach their equipment between jobs.  The contractor just wanted to spray a sealer on the walls and have them painted.  He said "This will go away.  It happens all the time.  We just paint over the odor.  You will never know."  He said if this were a new house that we were not living in at the time, we would never know.  The painter said he would not do the job with the odor.  We contacted the texture manufacturer and a lawyer.  He explained the odor is from the remnants of a bacteria that grew and multiplied in the texture material left in the equipment.  The longer it sits in the tank, the more bacteria, the worse the odor.  The order doesn't go away with paint or sealer.  It has to be removed.  Our contractor made us wait six weeks to see if it would dissipate.  He bleached the walls. He deodorized the walls... nothing worked.  With great pressure, he finally sanded all texture off the walls and ceilings, then retextured with uncontaminated material.  We waited six months before we painted to be sure the odor was gone.  It has been over a year.  Our home is painted and odor free.  What a stressful experience for us.  If the sanding did nor remove the odor, the walls and ceilings would have had to be removed.  I feel the contractor has to own the responsibility for poor practices.

 

 

 

Oct 26, 2009 7:53AM
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t seems as though China can get away with anything! Baby formula, lead paint, bad wall board, ect. With thier record, NO CHINESE PRODUCT should be importrd to this country. Whats next, germ warfare?
Oct 26, 2009 6:46AM
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Why is that USA can't seem to get the message to China that we will no longer let this type of incident go unpunished. Such as we will no longer accept any dry wall products from China as a result of there attempt to pass off bad or contaminated products to the USA. Even the lead based paints they use on our children's toys, maybe even the paints they use on our plates, coffee cups who really knows what type of contaminates or Hazardous waste products are mixed into there export products that don't get inspected.  The Asian country's do know and don't respect or obey other countries laws. Take a good long look at all the birth defects we have in this country, there must be and underlying source don't you think?
Oct 13, 2009 12:05PM
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we are all going to pay for our appetite for cheap imported goods over moderately expensive but much safer American made product. Yes the initial investment in made in America could be more expensive, but it the long run is worth it. From Drywall to tires, to food, China is poising us all with all the cheap stuff....Heck they are poisoning their own people, villages are being contaminated left and right. What makes us think that they will not protect people in their back yard, but protect us their rival?
Oct 9, 2009 7:57AM
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That really sucks for all the homeowners who probably unknowingly had this inferior product installed into their otherwise safe new homes, but there is no mention of the drywallers who worked day in and out with this product possibly for years.  When you cut drywall for light and outlet openings A LOT of dust becomes airborne.  I imagine these workers must be most at risk for long term health problems.  Who's gonna foot the bill for their healthcare. Not China, I know that much.

As far as I'm concerned, not a single one of their products should be allowed to be imported into North America until proven safe.  What may seem cheap initially could end up costing PLENTY more in the long run.  What's that saying, In for a penny  in for a pound? 

Oct 9, 2009 3:27AM
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My home at Grand Harbor, Vero Beach, FL has Chinese Drywall. It was discovered by the builder , Grand Harbor, who initiated an inspection. Grand Harbor has provided me with and moved my family into a comparable home to reside in while they completely rebuild mine, inside.

They couldn't have been more fair, so far and we have no evidence of lasting health issues.  

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About Teresa Mears

Teresa Mears

Teresa Mears is a veteran journalist who has been interested in houses since her father took her to tax auctions to carry the cash at age 10. A former editor of The Miami Herald's Home & Design section, she lives in South Florida where, in addition to writing about real estate, she publishes Miami on the Cheap to help her neighbors adjust to the loss of 60% of their property value.

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