Chinese Dryall Appeal

Chinese drywall maker appeals federal judge's ruling

The Virginian-Pilot
By Josh Brown
June 11, 2010

The manufacturer that shipped more than 150,000 sheets of drywall to a local supplier has appealed a federal court decision awarding $2.6 million in damages to local homeowners.

Taishan Gypsum Co. Ltd.'s filing on Thursday marks the first time that the company owned by the Chinese government has responded to any lawsuit filed against it in the United States.

In April, U.S. District Judge Eldon E. Fallon in New Orleans ruled that all drywall in the homes should be removed, along with all items that have suffered corrosion as a result of the drywall as well as anything damaged in the process of removal.

The judge awarded the damages to seven Hampton Roads homeowners whose properties were built with Chinese-made drywall. Attorneys had selected seven homes in Virginia - one in Virginia Beach, two in Newport News and four in Williamsburg - to serve as a cross section of homes affected by the drywall across the country.

Because Taishan never responded to lawsuits, Fallon entered a default judgment against the company last fall. The company's appeal and notice of appearance this week renewed hope that the company might eventually pay damages to local homeowners.

When supplies of U.S.-made drywall became scarce in 2005 during the building boom, now-defunct Norfolk construction supplier Venture Supply Inc. imported enough Taishan-made drywall to build more than 300 homes. The drywall has since has been found in scores of homes across the region.

In the fall, the U.S. Consumer Product Safety Commission found that the wallboard emits higher levels of volatile sulfur gases than typical U.S.-made drywall and is likely causing metal corrosion in homes. Homeowners claim the product also causes respiratory illness.
The commission later recommended that homeowners rip out the problem wallboard, electrical wiring and natural gas piping.

However, the judge's ruling went further, stating that all drywall should be removed, along with appliances, carpet and hardwood flooring, cabinets and trim. Fallon stated in his ruling that it is neither cost- effective nor scientifically possible to remove just the tainted wallboard in a home where both domestic and Chinese drywall was used.

The damages Fallon awarded also took into account the expense of relocating while remediation work is being done, as well as other expenses caused by the drywall, such as bankruptcy or foreclosure.

http://hamptonroads.com/2010/06/chinese-drywall-maker-appeals-federal-judges-ruling