Chinese Drywall Makers May Ignore Lawsuits - Who Will be Liable for Damages?

By Michele Wallace

Published on October 13, 2009

Attorneys representing homeowners who live in the southeastern United States are suing Chinese companies that manufactured and shipped defective drywall to the United States in the 2000s during the housing boom. It is alleged that the drywall is defective and easily corrodes copper and metals, and discharges dangerous chemicals and fumes that cause health risks.

However, Chinese companies are ignoring hundreds of lawsuits filed against them in U.S. courts. According to lead plaintiff lawyer, Russ Herman, this isn't the first time that the Chinese have disregarded legal action from the United States. Now, attorneys involved in the 300-plus lawsuits must determine who is liable for damages.

The lawyers indicated that Chinese companies are protected against liability in U.S. suits since suing them through international court is expensive and time-consuming. Additionally, civil judgments in the U.S. courts are not enforced in China.

One tactic being considered is filing suits against the U.S. investment bankers who financed the Chinese companies, and seizing ships that brought the drywall to the United States. However, attempting to seize the vessels that delivered the drywall may be challenging since identification of the ships would be near impossible. Further, a ship owner could sue if the seizure were deemed too aggressive.

U.S. distributers and construction companies that supplied the drywall may also be found liable for damages in these cases.

 

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