Judge Awards $2.6 Million in Chinese Drywall Suit
A federal judge in New Orleans ruled that a Chinese company that made defective drywall must pay $2.6 million to fix seven Virginia homes.
Palm Coast, FL – April 8, 2010
By Bob Van Voris and Allen Johnson Jr.: (Bloomberg)
A federal judge in New Orleans ruled that a Chinese company that made defective drywall must pay $2.6 million to fix seven Virginia homes.
U.S. District Judge Eldon Fallon today ruled that Taishan Gypsum Co., which didn’t contest the suit, must pay to “remove all drywall in their homes, all items which have suffered corrosion as a result of the Chinese drywall and all items which will be materially damaged in the process of removal.”
More than 2,100 homeowners in the U.S. have filed federal suits claiming their homes were damaged or ruined by defective drywall that gives off noxious odors and chemicals that can corrode wiring, plumbing and heating equipment.
Fallon, who is overseeing federal drywall cases nationwide, has said that his ruling in this suit may provide guidance for determining the extent and cost of home repairs required in defective drywall cases.
Toby’s Commentary: The Palm Coast area dodged this bullet. Only two local homes have tested positive for Chinese drywall.
Uncontested does not mean they will pay
The next step is getting the money to the homeowners. That can be like getting blood from a rock or in this case sheet rock. What other imports are not being checked? The US Government should have a portion of the awards payable by them for not inspecting the product.