Chinese Drywall Ruling Awards $2.6 Million, Expands Repair Liability

By Jim Greene

Published on April 12, 2010

In a ruling that could affect thousands of pending cases, a federal judge in New Orleans last week set a new level of responsibility for damages in awarding $2.6 million to seven Virginia families whose homes were rendered unlivable by Chinese drywall used in construction. While pleased with the rulings, the families are unsure how they will be able to collect.

U.S. District Judge Eldon Fallon went beyond the standard set earlier by the U.S. Consumer Products Safety Commission (CPSC), by ruling that peripheral damage to the affected homes must be repaired, along with primary damage from corrosion.

Toxic Gases from Chinese Drywall Cause Corrosion

Chinese drywall has been shown to emit toxic gases, especially corrosive sulfur compounds, due to its high content of fly ash, a waste byproduct of coal burning. Fallon ruled that Chinese drywall contains a significantly higher level of fly ash than American products.

The CSPC ruled that homeowners were entitled to have the drywall replaced, as well as repair or replacement of corroded items, including electrical wiring, plumbing, and air conditioning system components.

In his decision, Fallon expanded the list of items eligible for repair or replacement to include electrical appliances, carpets and flooring, cabinetry, trim, and other items that might be affected by a remediation project.

Further Legal Action May Be Needed to Recover Damages

Plaintiffs must now address the issue of collecting damages from the defendant, Taishan Gypsum Co., since U.S. civil lawsuit rulings are not legally binding in China. The company has not responded to legal actions and chose not to have legal representation at the trial.

Some plaintiffs' attorneys have suggested legal action to seize shipments of Taishan products to the United States. Others have suggested action against U.S. companies involved in the sale, distribution, and installation of Taishan drywall.

If your home has been damaged by Chinese drywall, contact an experienced defective products liability attorney. Now that a precedent has been set in this crucial issue, you may have an excellent chance of receiving financial compensation to help you deal with the disastrous effects of this toxic building material.

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