Chinese Drywall Class Action Lawsuit
A judge recently ruled that families that are part of a class-action suit against Chinese drywall manufacturers should receive damages of nearly $2.6 million. The suit could possibly set a precedent as many other cases are also making their way to trial. But, the effects are not so easy to predict, as the defendant, Taishan Gypsum Company, did not appear to defend itself.
The U.S. Consumer Product Safety Commission’s announced last week that all homes fitted with the Chinese drywall need to have all drywall removed, as well as all wiring or plumbing that has been corroded. Many homeowners affected by the drywall problems are left in a house that is possibly hazardous to live in and unmarketable. Many insurance companies have refused to pay for repairs due to the drywall claiming it is a manufacturer’s defect.
The fact that many homeowners cannot pay for the repairs themselves has created an issue of its own. In March of 2010, one lawsuit resulted in the insurance company being forced to pay for repairs, but it’s possible that the case will only apply to Louisiana.
In the meantime homeowners have been forced into one of three decisions. First, stay in the home, have the repairs made at their own cost and hope to be reimbursed. Second, stay in the house at risk of possible health and safety dangers. The third choice is to move out of their home and find another place to live while still paying for the first one. None of these choices are appealing to the home owners and they are stuck with unsellable homes in the meantime.