Class Action Settlements: Chinese Drywall
Drywall is a method of constructing interior walls and ceilings using gypsum plaster that is pressed between two thick sheets of paper and then dried. Fiberglass is also used in lieu of paper to prevent mold. This manner of finishing construction is superior to the use of plaster as it is faster and requires less labor.
Because of shortages in the American market in the mid-2000s, a number of Florida building companies imported drywall from China to use in new home construction. Complaints about the drywall began escalating when homeowners noticed that air conditioning units and wiring were corroding. Also, many residents with Chinese-made drywall were experiencing symptoms of respiratory problems including nose bleeds, coughing and sinus irritation.
In February 2009, a class action suit was filed against the manufacturers and distributors of Chinese drywall, including Knauf Plasterboard Tianjin Co, of Ltd. of China, alleging that the defective drywall was made from waste materials called fly ash from Chinese power plants, which could leak into the air and emit harmful sulfur dioxide and hydrogen sulfide. This results in a rotten egg odor and can lead to extensive electrical problems in addition to endangering the health of anyone exposed.
The suit alleged that up to 2000 homes could have had the defective drywall installed in them.
On April 8, 2010, a federal court in New Orleans overseeing multi-district litigation, ruled that the owners of seven Virginia homes constructed with Chinese drywall that proved to be toxic, were entitled to $2.6 million in damages caused by drywall gases that caused offensive odors rendering the homes unlivable. The judge also found the Chinese drywall had significantly higher concentrations of strontium than American-made drywall, exceeding safe levels.
In May 2010, the Consumer Products Safety Commission reported that over 3000 complaints had been received nationwide over the use of Chinese drywall. Many communities in the Gulf Coast have been affected since new home construction following the Hurricane Katrina disaster included installation of the imported drywall.
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