Homeowners of Texas - 03/28/10: DRYWALL: Homeowners sue over Chinese (and any non-US) Drywall

A YouTube search for "Chinese Drywall" uncovered over 100 videos posted already, including these (newest to oldest):

Wall Street Fraud Watchdog warns Toxic Chinese Drywall [and tainted US & non-US Drywall] are game changers

The Wall Street Fraud Watchdog is warning Wall Street, investors, the insurance sector, fiance sector, pension fund advisors, and Washington to wake up to a brewing disaster called toxic Chinese drywall [and tainted US & non-US drywall] that was used in US residential construction/remodeling from 2001, to early 2009. The group is saying, “This is the absolute worst environmental disaster in US housing history, the 100,000’s of US effected US homeowners are completely innocent, and an asleep at the switch federal response is no longer satisfactory.”

The Wall Street Fraud Watchdog is saying, “If Wall Street thinks this Chinese drywall [and tainted US & non-US drywall] mess is just going to go away – that would be insanity. The health care insurance providers are already paying through the nose on this disaster, because they have failed to figure out you cannot treat chemical exposure issues- with an antibiotic.”

The Wall Street Fraud Watchdog is also saying, ”This is a game changer, that will have major impacts on housing, real estate, finance, insurance, healthcare, and numerous other sectors of our economy.”

The group is says, “We also appreciate that this is also a game changer for American-Chinese trade relations.” Translation: When they average US consumer sees what Chinese greed has done to 100,000’s of completely innocent US consumers, we think the average American will say, “Sell your cheap, toxic, and frequently counterfeited products to your pals in Iran – we need trading partners we can trust.”

The group seriously doubts the Chinese Government has bothered to tell its own people, that the imported toxic Chinese drywall used on completely innocent US homeowners, was also probably used on millions of innocent Chinese homeowners as well. For more information please contact the Wall Street Fraud Watchdog at 866-714-6466, or contact the group via its web site at Http://WallStreetFraudWatchdog.Com

Note: The Wall Street Fraud Watchdog is presenting this issue to Wall Street in the hopes that meaningful help can be obtained for 100,000’s of completely innocent US homeowners stuck in a home that is too toxic to live in, especially in the US Southeast. The group says, ”Over the holidays, we met an individual who represented a real estate vulture fund at an airport who was bragging about getting unbelievable residential real estate deals in Florida – we thought we just met the most stupid person on the planet.”

* Toxic Drywall off gassing: Toxic off gassing is what happens when toxic Chinese drywall [and tainted US & non-US drywall] is exposed to heat and humidity. The results of this include blackened and corroding copper pipes and electrical wiring, failed AC coils, and serious health effects for those who live in the homes or condominiums. This mostly applies to US States in the US South, or US Southeast. [HOT: But Texas attorneys have been warned that it’s entering our state too.]

* Inter-mixing: Having more than one type of drywall manufacturer in a home/condo. This also means that the State of Florida’s numbers of maybe 60,000 Chinese drywall [and tainted US & non-US drywall] homes could be off by hundreds of thousands. The group believes that many to possibly most US homes built between 2001-2008 may have intermixed drywall manufactures.

* Blanks: Many homeowners in Florida & other states have a type of drywall called Blank drywall. There is no ASTM number on it – or manufactures name – nothing. The Chinese Drywall Complaint Center calls these Blanks and assumes this garbage came from China. The group asks, “Why did major US homebuilders install blank drywall in their homes built from 2001-2008? Where was the city or county building inspectors?”

* Time Lines: For Toxic Chinese Drywall [and tainted US & non-US drywall]: 2001-to early 2009.

* What Is Tainted US Drywall: According to the Chinese Drywall Complaint Center,”We do not know what tainted US drywall is yet. We are not sure if it is counterfeit drywall from the world’s biggest counterfeiter – China – or if its US made drywall, that used really cheap Chinese gypsum-or-all of the above-we don’t know yet.”

[HOT: From a recent CLE (continuing legal education) webinar on Chinese Drywall, we learned that tainted non-US drywall, and possibly US drywall, has similar sulfur content and displays the same symptoms.]

* Symptoms of Toxic Chinese Drywall [and tainted US & non-US drywall]: One question the Chinese Drywall Complaint Center gets asked frequently is what are the symptoms or indicators of toxic Chinese drywall in a home? The group says, “In Florida, the U.S. Southeast, Virginia or other states known to have toxic Chinese drywall, the four biggest symptoms/indicators of toxic Chinese drywall we hear are air conditioning coil failures, failed electrical appliances/flickering lights, black copper, combined with health side effects that include nonstop upper respiratory problems, to severe headaches, to nose bleeds, to all sorts of strange rashes.” But what about that sulfur smell? The group says, “Some homes have the sulfur smell, some do not. We do not think that the smell of sulfur is necessarily the best indicator for toxic Chinese drywall. We think a far better indicator for homes, at least in Florida, Louisiana, Alabama, Georgia, Southeast Texas, Mississippi, Virginia or other humid, warm states are air conditioning coil failures, electrical problems, combined with all, or some of the homeowner’s family are sick.”

* Toxic or Tainted Drywall In All Other US States: The group is now saying, ”As far as finding toxic Chinese drywall [and tainted US & non-US drywall] in other US States – like Arizona, California, New York – we think the best solution for homeowners is to carefully go up to their attic & see what is written on the back of the drywall — write the information down. Also check in your laundry room and see if the copper - or stainless steel plumbing connections to your washer-dryer have turned black, or corroded. Laundry rooms in US homes may have enough humidity to give signs of bad drywall. If this is the case – in combination with the homeowner & their families are sick – please contact the Chinese Drywall Complaint Center at http://ChineseDrywallComplaintCenter.com

The Wall Street Fraud Watchdog is saying,”Whatever happened to Wall Street looking six-to-twelve months out? Toxic Chinese drywall [and tainted US & non-US drywall] is a really, really big deal. Not knowing about it will not be an excuse for CEO’s, COO’s or CFO’s. Pretending like it is not there — would also be a cataclysmic mistake for Wall Street.” The group says,”What happened to Countrywide Home Loans, Washington Mutual, and Wachovia bank for selling pay option mortgages, is about to happen to the US homebuilder sector. Think we are wrong? Stick around.”

Chinese Drywall Liability: Who’s on the Hook?

Legal action is heating up in lawsuits over defective Chinese drywall. Imported mostly during the boom years of 2004 through 2006, the material emits offensive-smelling sulfurous gases that blacken copper wiring, damage or destroy air conditioner coils, and irritate the eyes, nose, and throat. The damage and complaints are most widespread in Florida, but they’ve sparked lawsuits in other states as well. Many of those suits have now found their way to a class-action “multidistrict litigation” process in the U.S. District Court for Eastern Louisiana, presided over by U.S. Judge Eldon Fallon.

Assigned to the case in June, Fallon has focused on a handful of suits in which the plaintiffs allege only property damage — not health problems. These “bellwether” cases are intended to quickly establish the basic common facts about the drywall and its emissions and to determine where the law assigns responsibility — with the homeowners themselves, the builders, the drywall installers, the drywall distributors, the importers, the original manufacturers in China, any of their various insurance carriers, or some combination of parties. Trials could begin as soon as January.

To organize the process, Judge Fallon has appointed two attorney “steering committees,” one each for the plaintiffs and the defendants. And because home builders have unique interests both as defendants (sued by homeowners) and as plaintiffs (suing drywall manufacturers, installers, importers, or insurance companies), Fallon took the unusual step of appointing a third “home-builder steering committee” to advocate the builder point of view.

“The only true defendant in these cases is going to be the manufacturer,” Miami attorney Robert Brown III told a New Orleans lawyers conference in June. “Every other participant is going to be either a pure plaintiff, like the homeowners that my firm represents, or a combination of plaintiff and defendant. Everybody upstream from the homeowners is going to be looking to move the ball uphill as a plaintiff to get money, and also downhill as a defendant.” Basically, everybody is hoping that the responsibility will fall with the Chinese — but in building-defect lawsuits, it’s not unusual for the cost to get spread around. Here’s a quick look at the various stakeholders and the ways they are exposed to loss.

Homeowners. Although homeowners are plainly the victims in this case, the remedies available to them vary in complex ways, depending on state law. One option is to file an insurance claim with the homeowners’ insurance carrier. But in Florida, insurance companies have denied the claims, saying that defective construction is not covered. Some homeowners have even had policies terminated or renewals refused after filing a claim for Chinese drywall damage.

When homeowners turn to builders for a repair, they could run into other problems. Florida, for example, has a “right to repair” home warranty law in effect that allows builders a six-month grace period before a homeowner can sue (even if the builder is in bankruptcy). But when a builder has gone bankrupt, the deadline for filing a claim in the bankruptcy proceeding may expire before the builder’s “right to repair” grace period does, leaving homeowners in the lurch.

Lennar Homes, a major national builder with a large presence in Florida, has addressed its Chinese drywall problem head-on, moving homeowners into temporary lodging while the drywall is removed and replaced and other damaged building components are repaired. But attorneys have cautioned that it’s not clear whether any remediation will pass muster in the long run — to date, there is no established standard for remediating contaminated homes.

Some attorneys have argued that removing bad drywall before a court has acted destroys evidence in the lawsuit; homeowners who want someone else to pay, they suggest, should leave the drywall in place. But if you don’t remove the bad drywall, the damage to metals in the home is progressive — meaning that a defendant could try to argue that the homeowner, builder, or anyone else who could have acted to remove the drywall is partially to blame for any damage. It’s a dilemma for homeowners. However, California attorney Patrick Schoenburg says courts will likely give homeowners plenty of slack on that point: “You could certainly preserve enough of the drywall to protect the evidence. And there is a duty to take reasonable steps to limit the ongoing damage — the question there is what’s ‘reasonable.’ I think that while damage to copper wire and things may be happening, reasonable steps probably would not include having to remove all the drywall from your house, unless you clearly have the means to do so and there was some easy, well-known, accepted way to do it — which there is not.”

Even after the damage does get fixed, real estate appraisal expert John Kilpatrick told the New Orleans conference, repairing a defective home usually leaves behind a loss in value called “stigma,” a perceived inferiority that reduces the repaired home’s market price compared with other homes on the market. And in fact, Kilpatrick said, further repairs often can make a stigmatized house more expensive to own and live in. Ultimately, homeowners may have to eat at least part of that so-called “diminution of value.”

Builders. For the most part, builders are likely to be held responsible to homeowners — at least for repair costs and possibly also for the loss of market value. In turn, the builders can try to collect on general liability insurance policies (as Lennar Homes has said it plans to do). But insurers are trying to avoid paying based on what’s known as a “pollution exclusion” — language in many policies that excludes coverage for things like toxic chemical spills or acid rain, and that has been stretched in some cases to deny coverage related to building-product off-gassing.

“The absolute pollution exclusion is where the fighting is going to be most heavy with respect to whether a builder’s or contractor’s liability for Chinese drywall is covered by its commercial general liability policy,” said Pennsylvania attorney Robert Stickley at the conference.

Subcontractors. Home builders — along with homeowners — could also turn to drywall installers for relief. Ordinarily, trade contractors don’t represent a deep pocket for product-defect lawsuits; furthermore, many drywallers — like many builders — have gone broke in the current recession. Nevertheless, the insurance coverage wrinkle could make the subs a fat target in this case: Their policies often name the builder as a “named insured,” and depending on the language, this coverage for the builder may not involve any pollution exclusion. Even if a sub has gone out of business, his insurance company may not have — and his old policy might still pay off. “Some of my clients have made the most money suing subcontractors,” Dallas attorney Sandy Esserman told the conference. “Why? They usually have fantastic insurance programs.”

Whether a sub’s insurance policies will cover builders or homeowners in drywall cases will depend on the policy language and the facts of the particular case. But the legal issues involved will also be treated differently by courts in different states, thanks to the legal concept of “choice of law”: When you sue an insurance company, the suit could be tried under the law of the insurance company’s home state, the law of your home state, the law of the state where the damage occurred and the claim arose, or even, if the court so chooses, the law of some other state that is involved in some way.

Manufacturers. Ultimately, it’s a handful of Chinese [and now extended to other non-US] manufacturers who created this problem when they manufactured drywall using minerals, chemicals, and organic materials that U.S.-made drywall typically does not contain. But like everyone else, Chinese companies are acting to protect their assets. One company, Taishan Gypsum, has simply stonewalled — failing even to show up in court to answer the complaint. Judge Fallon in September issued a “default judgment” against Taishan, essentially finding the company guilty in absentia.

U.S. product liability attorneys usually shy away from pursuing overseas defendants, because suing in international courts is expensive and slow, and foreign governments such as China will not enforce damage judgments reached in U.S. domestic courts. But lawyers in this case say that a range of options are being considered to get the attention of the Chinese — seizing foreign vessels in U.S. ports that have transported the drywall, for instance, and suing U.S. investors who have an ownership stake in the Chinese manufacturing firms. Plaintiffs attorney Russ Herman, for one, seems to think that Chinese manufacturers are not immune. “I think we can bust the dam in this case,” he recently told The Associated Press. With tens of thousands of homes affected by the problem drywall, and with repair estimates running at $100,000 per house and more, there are countless homeowners, builders, and subcontractors who hope he’s right.

Drywall complaints: stench, sickness

Building material from China upsets & sickens residents, corrodes pipes & wires

PARKLAND, Fla. - At the height of the U.S. housing boom, when building materials were in short supply, American construction companies used millions of pounds of Chinese-made drywall because it was abundant and cheap.

Now that decision is haunting hundreds of homeowners and apartment dwellers, who are concerned that the wallboard gives off fumes that can corrode copper pipes, blacken jewelry and silverware and possibly sicken people.

Shipping records indicate that imports of potentially tainted Chinese building materials exceeded 500 million pounds during a four-year period of soaring home prices.

The drywall might have been used in more than 100,000 homes, according to some estimates, including houses rebuilt after Hurricane Katrina.

"This is a traumatic problem of extraordinary proportions," said U.S. Rep. Robert Wexler, D-Fla., who introduced a bill in the House calling for a temporary ban on the Chinese imports until more is known about their chemical makeup. Similar legislation has been proposed in the Senate.

The drywall apparently causes a chemical reaction that gives off a rotten egg stench, which grows worse with heat and humidity.

Researchers don't know what causes the reaction, but possible culprits include fumigants sprayed on the drywall and material inside it. The Chinese drywall is also made with a coal byproduct called fly ash that is less refined than the form used by U.S. drywall makers.

Dozens of homeowners in the Southeast have sued builders, suppliers and manufacturers, claiming their walls are emitting smelly sulfur compounds that are poisoning their families and rendering their homes uninhabitable.

"It's like your hopes and dreams are just gone," said Mary Ann Schultheis, who says she has suffered burning eyes, sinus headaches and a general heaviness in her chest since moving into her new, 4,000-square-foot house in this tidy South Florida suburb a few years ago.

She has few options. Her builder is in bankruptcy, and the government isn't helping.

"I'm just going to cry," she said. "We don't know what we're going to do."

Builders have filed their own lawsuits against suppliers and manufacturers, claiming they unknowingly used the bad building materials.

The Consumer Product Safety Commission is investigating, as are health departments in Virginia, Louisiana, North Carolina, Florida and Washington state.

"Based on the amount of material that came in, it's possible that just in one year, 100,000 residences could be involved," said Michael Foreman, who owns a construction consulting firm. The company has performed tests on about 200 homes in the Sarasota, Fla., area and has been tracking shipments of the drywall.

Companies that produced some of the wallboard said they are looking into the complaints but downplayed the possibility of health risks.

"What we're trying to do is get to the bottom of what is precisely going on," said Ken Haldin, a spokesman for Knauf Plasterboard Tianjin, a Chinese company named in many of the lawsuits.

Dr. Phillip Goad, a toxicologist hired by Knauf Plasterboard Tianjin, sampled drywall from 25 homes, some of which contained the company's wallboard.

"The studies we have performed to date have identified very low levels of naturally occurring compounds," Goad said. "The levels we have detected do not present a public health concern. The chemicals are naturally occurring. They're produced in ocean water, in salt marsh air, in estuaries."

But those who are living with the drywall are convinced that something is making them sick.

So far, the problem appears to be concentrated in the Southeast, which blossomed with new construction in the housing boom and where the damp climate appears to cause the gypsum in the building material to degrade more quickly.

A Florida Department of Health analysis found that the Chinese drywall emits volatile sulfur compounds and contains traces of strontium sulfide, which can produce the rotten egg odor and reacts with air to corrode metals and wires.

But the agency says that it "has not identified data suggesting an imminent or chronic health hazard at this time."

"We're continuing to test," said Susan Smith, a spokeswoman for the department, which has logged 230 complaints on drywall from homeowners.

Tainted Chinese drywall shows up in Katrina homes

CHALMETTE, La. - Thomas Stone and his wife rebuilt after their home was flooded by six feet of water during Hurricane Katrina, never dreaming they would face the agony of tearing it apart all over again.

They tapped Lauren Stone's 401(k) retirement savings and saved $1,000 by installing Chinese-made drywall throughout their two-story home. Now the Stones are among hundreds of Katrina victims facing another, this time unnatural, disaster.

Sulfur-emitting wallboard from China is wreaking havoc in homes, charring electrical wires, eating away at jewelry, silverware and other valuables, and possibly even sickening families.

"The bathroom upstairs has a corroded shower-head, the door hinges are rusting out," said 50-year-old Thomas Stone, the longtime fire chief of St. Bernard Parish, outside New Orleans. And then there's the stench, like rotten eggs, that seems to get worse with the heat and humidity.

"It makes me wish there would be another flood to wash it out," said his wife Lauren, 49.

Chinese manufacturers flooded the U.S. market with more than 500 million pounds of drywall around the same time Katrina was flooding New Orleans, an Associated Press review of shipping records has found.

The boom in imported China-made building materials peaked in 2006, driven by domestic shortages created by the nationwide construction boom, as well as a series of Gulf Coast hurricanes.

That year, enough wallboard was imported from China to build some 34,000 homes of roughly 2,000 square feet each, according to the AP's analysis and estimates supplied by the nationwide drywall supplier United States Gypsum. But experts and advocates say many homes may have been built with a mixture of Chinese and domestic drywall - which could push the number of affected homes to 100,000 or more, by some estimates.

The drywall apparently causes a chemical reaction that gives off the rotten-egg stench and corrodes metal. Researchers do not know yet what causes it, but possible culprits include fumigants sprayed on the drywall and material inside it. The Chinese drywall is also made with a coal byproduct called fly ash that is less refined than the form used by U.S. drywall makers.

The Chinese ministries of commerce, construction and industry and the Administration of Quality Supervision Inspection and Quarantine did not respond to repeated requests for comment from the AP, although Chinese media have reported that AQSIQ, which enforces product quality standards, was investigating.

The U.S. Product Consumer Safety Commission and a number of states are investigating the extent of the problem, what's causing it, and whether it poses serious health risks. But it could be years before the full extent of the problem is known.

Meanwhile, the moist climate of the South has meant the impact is being felt here first - at least 350 people in Louisiana have already complained to the state health department in yet another unexpected twist for hurricane victims who have lived through more than three years of hardship.

"We've been through the storms, we heard about the formaldehyde," Louisiana Department of Health and Hospitals spokesman Renne Milligan said, referring to a previous housing nightmare in which tests showed elevated levels of formaldehyde in hundreds of FEMA-issued trailers.

"Some of our residents are still living through that, and now we're talking about this drywall," Milligan said.

Governors in Louisiana and Florida are asking for federal assistance, and members of Congress are calling for a recall and a ban on future imports.

Like hundreds of other homeowners from Florida to Texas, the Stones have signed on to a class-action lawsuit directed against the manufacturers, suppliers and builders of the drywall. The defendants in the Louisiana cases include Knauf Gips KG, Knauf Plasterboard Tianjin Co., Taishan Gypsum Co., L&W Supply Corp. and USG Corp., a major U.S. drywall supplier.

"What we're trying to do is get to the bottom of what is precisely going on," said Ken Haldin, a spokesman for Knauf Plasterboard Tianjin.

The lawsuits contend the Chinese drywall is emitting sulfur, methane and other volatile organic chemical compounds that are ruining plaintiffs' homes and harming their health.

Some of the companies told AP they are looking into the complaints, but downplayed the possibility of health risks.

Attorney Daniel Becnel has filed about 15 lawsuits in federal court in New Orleans on behalf of hundreds of homeowners.

"And we're getting more in every single day," he said. "People are just distraught."

Mississippi attorney Steve Mullins has also joined the cadre of court actions.

"Bloody noses, headaches, respiratory infections," Mullins said, ticking off the list of health problems reported by his clients. "Over and over like a broken record."

"But let's ignore the personal injury aspect for a moment," he added. "You know what, this stuff's got to come out anyway."

He said his research indicates the problem could exist in hundreds of thousands of homes nationwide, a conclusion echoed by other experts.

David Sides, manager of River City Materials, a drywall supplier based in Jefferson, La., remembers when the Chinese product began saturating the U.S. market.

"Florida got hit with four hurricanes and that's what started the importing from overseas," said Sides, who says his company did not sell the tainted drywall. "So many people purchased board from overseas. So many people tried to cash in on shortages here."

Mary Haindel's home near Lake Pontchartrain was destroyed by Katrina's floodwaters, so she bought a new, $320,000 town-home in an area known as the North Shore, where many hurricane victims relocated. Soon, the coils on her air conditioning system went out, and copper slowly turned black - telltale signs that the tainted wallboard was used.

Haindel, a 45-year-old real estate agent and jewelry appraiser, moved out. She is now renting a condominium and says it will be difficult to sell the home.

"As I was leaving, I noticed downstairs that a stainless-steel chandelier I have is turning black," she said. "You can't live in it. Your lungs get congested. Would you stay in a house eating pipes?"

The town home's builder, Leroy Laporte of Southern Star Construction Inc., declined to comment.

"It's Katrina all over again," Haindel said. "It was an immediate: You got to go, you pick up, and you leave."

"I don't see them protecting us at all," she said. "I don't know what's right or wrong anymore."

Chinese Drywall Update: Federal Class Action Filed Against Manufacturer, Distributor

MIAMI, FL (04/02/2009) -- Attorneys with Higer Lichter Givner, The Blumstein Law Firm and Podhurst Orseck have filed a federal class action on behalf of Florida homeowners Janet Morris-Chin and Dajan Green against the foreign manufacturer of defective Chinese drywall, Knauf Plasterboard Tianjin Co. Ltd., and the foreign company that distributed it in the United States, Rothchilt Int'l., LTD.

Drywall manufactured in China was used in thousands of homes built in the United States during the building boom between 2004 and 2007. The lawsuit claims toxic chemicals that emanate from the drywall have damaged houses, fixtures and personal property rendering the homes unsafe and uninhabitable. In addition to receiving relief for the damages to their property, members of the class action are seeking medical monitoring for the adverse effects of prolonged exposure to the toxic chemicals.

"We have filed a national class action because more than 60,000 homes in 13 states are believed to have defective Chinese drywall," said Victor M. Diaz with Podhurst Orseck. "We anticipate that when the Consumer Products Safety Commission completes its investigation, this product will be recalled across the country. This could be potentially one of the largest product liability cases related to home construction in U.S. history."

Morris-Chin and Green purchased their home in a Homestead, Fla. community developed by a national builder in 2006. Shortly after, they began noticing damage from the defective drywall around the new house. An air-conditioning coil was completely black and iced over when it should have been copper-colored and ice-free. Two home computers suddenly stopped working and the wiring in the nearby outlets was found to be covered in black soot. The family developed physical symptoms including respiratory ailments and headaches.

"When certain chemical compounds in the drywall are exposed to moisture and react with other chemicals found in the houses, they create noxious chemicals that overwhelm the homes with unpleasant odors and lead to costly damages," said Jacob Givner with Higer Lichter Givner. "For many homeowners this situation has become dire. They have been forced to flee their homes and secure rental housing. They are falling behind in their mortgage payments and worried about the unknown health effects from being exposed to the toxic chemicals."

Members of the class action claim they have incurred economic damages and are entitled to recover monetary damages for the replacement and repair of their homes; the removal and replacement of all of the drywall; the replacement of other property (air conditioner and refrigerator coils, microwaves, faucets, utensils, copper tubing, electrical wiring, computer wiring, personal property, electronic appliances, and other metal surfaces and household items); and the repair and replacement of any material contaminated or corroded by the drywall.

The class members have also incurred significant costs to move out of their homes and find temporary housing until their homes are remediated, said Mark Blumstein of The Blumstein Law Firm.

"Not only are these families unable to enjoy their new homes, but the properties have lost value due to the stigma of having defective drywall," he said. "For some members of the class action, the consequential damages include the loss of the home to foreclosure because they've been unable to pay their mortgages while also paying for safe-haven housing."

In February 2009, the law firms of Higer Lichter & Givner and The Blumstein Law Firm were the first to file a class action in state court on behalf of Florida residents who purchased new homes constructed with the defective drywall. A special phone line has been set up for those seeking information on the issue: 305-356-7549. Information also is available online at www.chinesedrywallawsuits.com

Drywall from China blamed for problems in homes

Sulfur gases given off by the Chinese drywall used by Lennar Homes and others has been blamed for foul smells, health problems, corroded copper pipes and wires, and depreciated home values.

Real estate agent Felix Martinez thought he'd found his dream house when he bought the 3,500-square-foot beauty in Homestead, Fla., two years ago.

Then, he says, his large-screen TV mysteriously failed. Next, the air conditioner went. His bath towels smelled like rotten eggs. Visitors noted an odor in the house. Martinez says he's suffered new sinus problems and sleep apnea. His wife and son sneeze a lot.

The walls in the home, a recently filed class-action lawsuit alleges, were built with the same kind of Chinese-made drywall that tests have shown emit sulfur gases that corrode copper coils and electrical and plumbing components.

Similar problems have been linked to hundreds of Florida homes. Tens of thousands of homes there and in other states could be affected, say lawyers who have filed lawsuits on behalf of Florida homeowners. The discovery has created a firestorm that's engulfed an international building supplier, large and small home builders and dozens of subcontractors. The issue also has revived concerns about quality-control procedures of U.S. companies that use Chinese-made products, following episodes in recent years involving contaminated toothpaste and pet-food ingredients, lead-tainted toys and defective tires imported from China.

A leading U.S. home builder, Lennar, and a Chinese drywall manufacturer, Knauf Plasterboard Tianjin, say tests show the gases given off by the drywall pose no health hazards. Florida regulators and the federal Consumer Product Safety Commission are investigating.

Lawyers say far more testing needs to be done.

"If it can put holes in metal coils, how do we know it doesn't cause problems in children or adults?" asks attorney Jeremy Alters of Florida-based law firm Alters Boldt Brown Rash Culmo. Alters says he has clients who developed respiratory ailments "out of the blue" after moving into allegedly affected homes.

Knauf says Chinese drywall imports started in significant amounts in 2005 as a result of a shortage driven by the booming housing market and rebuilding after Hurricanes Katrina and Wilma.

In addition to lawsuits on behalf of Florida homeowners, a class-action lawsuit was recently filed by an Alabama home builder that has made air conditioning repairs on two dozen Alabama homes, says attorney Steven Nicholas. A class-action lawsuit has also been filed on behalf of Louisiana homeowners.

"We know for a fact that this product is in Virginia, Louisiana and California," says Charles LaDuca, of Washington, D.C.-based law firm Cuneo Gilbert & LaDuca. "The breadth of the problem is just unfolding."

Investigations began in 2004

So far, Florida is ground zero. Up to 1,000 homes in the southern part of the state may be affected, says Jack Snider, president of American Management Resources Corp. (AMRC). Working for homeowners and builders, the environmental consulting firm has tested drywall for gases and checked homes for odors and corrosion.

AMRC first began investigating odor complaints in 2004 and found drywall to be the cause. Because most drywall doesn't identify its origin, Snyder says, it took until 2006 before foreign-made drywall became the focus.

Homeowner lawsuits allege that the drywall has corroded air conditioning and refrigerator coils, microwaves, computer wiring, faucets and copper tubing.

Tests paid for by Lennar say the drywall appears to emit sulfur gases that can damage air conditioning coils, electrical plumbing components and other material.

In one test, copper pipe turned black after four weeks when placed in a sealed container with a piece of affected drywall, according to a lawsuit filed Jan. 30 by Lennar against Knauf Gips of Germany and its Chinese affiliate, Knauf Plasterboard Tianjin, and others. The pipe then started to corrode, Lennar says.

Lennar alleges that Knauf produced "defective" drywall. It also says subcontractors put it in homes without Lennar's knowledge. Lennar has said it has more than 80 affected homes in Florida and dozens more under review. It is relocating residents while it installs new drywall in homes.

Plaintiffs' attorneys say residents have suffered a host of health issues, including rashes, new allergies, asthma and sore throats. Along with receiving compensation, they should be monitored long-term for health issues, says attorney Ervin Gonzalez of Colson Hicks Eidson. "This has been an economic, physical and emotional problem for victims," he says. Based on import records, he estimates that up to 60,000 U.S. homes may be affected, with about half in Florida.

Testing air

Drywall is made from gypsum, a mineral. Manufacturers also make synthetic gypsum by processing residues produced by coal-burning power plants.

Normally, drywall doesn't smell or emit sulfur gases, says Nancy Spurlock, a spokeswoman for National Gypsum. It doesn't import drywall or ingredients from China, she says.

Lennar, which refused interview requests, says it discovered the issue after noticing frequent air conditioning problems in homes.

Its consulting firm, Environ International, tested air in 79 affected Florida homes late last year and found sulfur compounds at levels well within health and safety limits or on par with outdoor air.

Knauf's testing firm, the Center for Toxicology and Environmental Health in Arkansas, recently tested 20 Florida homes with discolored wiring.

It found results similar to Environ's, says toxicologist Phillip Goad, who oversaw his firm's testing. Levels of carbonyl sulfide were in the range of salt marsh air. Exposure to carbon disulfide were well within safety levels set by The National Institute for Occupational Safety and Health.

At higher concentrations than found in the homes, carbonyl sulfide can irritate eyes and the respiratory system, and have other effects, says Goad. Carbon disulfide can produce symptoms including irritated eyes, headaches and fatigue.

The Consumer Product Safety Commission dispatched staffers to Florida late last month to investigate and will do health hazard testing, says spokesman Joe Martyak.

The Florida Department of Health is also testing. Its website says it has not "identified data suggesting an imminent or chronic health hazard at this time."

In January, the state inspected 12 homes built from 2004 through 2008 to assess possible health hazards and set up more sensitive testing protocols. Results are pending, it says.

Mine was changed in 2006

Knauf says odor complaints about its Chinese drywall surfaced in 2006. Its investigation determined that the drywall smelled like drywall made from natural gypsum in China. The drywall from one China mine used by Knauf contained iron disulfide, a naturally occurring mineral. That would account for the smell, Goad says.

Knauf says it stopped using the mine - which other manufacturers also used - in late 2006 after the issues arose. It says it's being "unfairly" tainted because it labels its imported drywall from China while others do not.

Knauf says it was responsible for just 20% of the Chinese drywall that came to the U.S. in 2006. It also says that Lennar has identified homes with odor and copper issues that included non-Knauf drywall.

Consultant Snider, too, says that other drywall makers "have not been as noticed as Knauf."

Lennar and Taylor Morrison, a home builder based in Arizona with a dozen affected Florida homes, say they're absorbing the expenses of relocating residents for the several months it can take to repair affected homes.

Lennar says it used the Chinese-made drywall in a small percentage of Florida homes built from November 2005 through November 2006. It's not being used in new homes, it says. Lennar and Taylor, both of which build homes outside of Florida, say they're not aware of homes outside of Florida being affected.

South Kendall Construction of Florida built Martinez's home. The company is still assessing the situation, according to its attorney, Kieran Fallon. It has tested several dozen Florida homes and expects about 50 to have problems, he says.

Martinez says he can't afford to rent another place while South Kendall figures out what to do. "We're caught between a rock and a hard place," he says.

Karin Vickers, a 45-year-old certified public accountant, is in the same situation.

She bought her Homestead, Fla., home across the street from Martinez, also in 2006, for $485,000. "I love the house," she says. But the air conditioning didn't work properly and was just replaced. Her TV also failed after a year. Her wall sockets turned black, and her bathroom smells like burned matches, she says.

The real estate crash has knocked her home's value down about one-third, Vickers estimates. "It's dropped more now because of this," she says.

Builders face drywall issues

Chalk another woe up to the housing bubble: The greedy explosion of demand for housing three and four years ago apparently led some area contractors to resort to Chinese-made dry wall.

This is going to be difficult and expensive to sort out, but the responsible parties must make good on whatever mistake was made, proportionate to the harm done.

Big questions remain about how much damage the sulphur-emitting dry wall actually caused to air conditioners, refrigerators and even home wiring, and whether there was a threat to human health.

Builders are already hard-pressed in the current slump. But this dry wall business has the potential of becoming a class-action litigation nightmare. Better to tackle the matter up front, using insurance, special funds, whatever, to satisfy customers once there's a reasonable handle on the issue, than to let lawyers fight it out in court.

Lennar Homes, which has gotten complaints from residents in the Bella Terra condominium, sounds like it is among the builders confronting the issue head on.

The company's Southwest Florida Division president, Darin McMurray, said in a statement, "... independent subcontractors installed Chinese drywall in a very small percentage of Lennar homes built between November 2005 and November 2006. ... Scientific testing shows no indication of any health risks to our homeowners. Lennar has been working with our homeowners on long-term solutions based on the specific testing of their homes."

Aubuchon Homes has relocated one family in Fort Myers while determining whether problems are drywall-related. Engle Homes twice fixed problems by taking out the drywall or sealing it with paint.

That's a good start. If homeowners and builders can work together honestly, avoid panic and repair proven problems, maybe this problem can be addressed without enriching the lawyers.

But the problem has to be faced, whatever its dimensions, and any harmed parties made whole.

READER COMMENTS:

Salt2 wrote:

In the a/c industry it's referred to as "Black Coil". Copper turns color due to specific chemical attacks, Green=Chlorine, black=sulphur. Black copper isn't a phenomenom in Florida as some rural areas have shallow wells which contain sulphur and the indoor air conditioning coils fail due to oxidation process that occurs, or more simply put rust. The occasionally found typical sulphur coil failure due to local water will occur at interval of about 1 to 1.5 year. With the "Black Coil" from drywall the failure rate is more like every 6 months with only a small variance in time to failure due to temperature setting and run time of the air conditioner. Additionally, other copper in the home can be likewise effected, copper wiring, copper coils on the back of refigerators. Health effects, some suspected none verified to my knowledge. In discussions with many builders in Florida all were concerned, all inquired as what is the right thing to do.

HERE IS THE BEST I CAN ADVISE: When air passes across the indoor coil, moisture is condensed on the coil surface, this moisture, condensate, literally comes out of the indoor air, with the moisture comes any airborne chemical / compounds. This is one of the reasons why local codes require the condensate to be dumped outdoors and not into the sanitary system. Chemicals / compounds end up on the coil surface (copper/aluminum) in concentration. Sulphur compounds are very aggressive on copper turning the copper ends of the coil black, or a dark purpleish. Surface texture can be smoothe with black sooty substance coming off when wiped to rough scaly dark purpleish with little or no residue when wiped. The dark purpleish is cuprous sulfide and the most aggressive against copper. Also the exposed copper wiring internal of the indoor unit will be black. Visually check your indoor coil. Do you find this?

TIME LINES: Was your home built 2005 through 2007? Have indoor coil failures been experienced on a seemingly regular basis, every 6 months to 1 year? Suphur is highly agressive towards copper - the result is from a few pin holes to hundreds of small pin holes throughout what is called the fin pack area of the coil. This is the area where the condensation originally takes place during the cooling process, and consequently where the first leaks will occur. The timing of failure is amazing, almost like clockwork. Sulphur smell, rotten egg odor, will only be noted by the occupants where the highest concentrations occur. I have evaluated hundreds of Florida failed coils over the last 22 years, 15 of which were with 2-major a/c manufacturers. Misdiagnosis (frequent) by technicians, cracked copper / poor soldering by manufacturing, VOCs, other chemical induced failures the list of potentials is long. Only with chemical failed coils will there be undeniable timing consistency.

TESTING: Only through testing can the real source be found. So many potential reasons for coil failure. When it comes to chemical failed coils the list is even longer as to where the source may be. Is the home located near a sulphur plant, power plant, mining operation or phosphate facility, water treatment plant, is the domestic water supply from a shallow rural well where a strong rotten egg odor is noted when the faucet is turned on. With some sources three miles can be close enough. A local IAQ firm in Clearwater now has 3- available tests that can assist in tracing to the source (water, air, and drywall). Additional tests are available specific to other airborne contaminants. Testing must be sulphur specific. If you answer yes to items 1,2 and due to the other potentials you should pay for the testing. It has been my expierience when testing was paid and provided by others, depending on the results, the effected were many times doubtful.

With the discoveries in hand, the homeowner should approach the builder. I have sat with many builders not one expressed anything but justified concern for the homeowner. Certainly there was fear of financial damages. However the builder did not know and is as much of a victim as the homeowner. They certainly did not ask for this, or suspect that the Chinese didn't properly cure the drywall to remove the sulphur which is a normal component of the drywall. The builder does want to do the right thing and certainly can not handle the burden of testing for every potential.

With 33 years in the HVAC industry of which 15 were spent with 2-major a/c manufacturers as factory/field support, 15 years as international consultant, the last 22 years all here in Florida few can get much past me. Painting / sealing of sheetrock is not likely to resolve, coating of metals will not work, ventilating the home with Energy Recovery Ventilators is viable resource and can help remediate other potential issues also. Replacing the drywall is an expensive but sure way to go. However I wouldn't spend one dime of money or one minute of concern if the issue wasn't affirmed and tested to the degree mentioned.

Moknows wrote:

Once again the claims of Engel homes is unfounded except for removing the drywall. Fosters sealant paint has been added to all the surfaces of a tested home with the drywall in question and did not work. The odor came back after the smell of the paint went away and certain metals continued to pit. I don't under stand why the newspress keeps using Lennar as if they are the only one with a real problem. As far as i can tell almost all the builders have this problem to a certain degree and not at small %s. "Scientific testing shows no indication of any health risks to our homeowners. Lennar has been working with our homeowners on long-term solutions based on the specific testing of their homes" Yes certain ASTM and OSHA testing has been conducted but this is a cumulative issue and not a short term exposure, so no true heath study has been conducted to date meaning testing for chronic exposures.

This article is right about not panicking and to work with your builder, it's just no one has attempted correct type of testing including corrosion studies to analytically find out what is actually corroding the specific metals and comparison studies with the affected drywall and regular US made drywall without the stated issues. Here are a few terms you should look for and research.

YouTube Videos:

Wall Street Fraud Watchdog warns Toxic Chinese Drywall [and tainted US & non-US Drywall] are game changers

Chinese Drywall Liability: Who’s on the Hook?

Drywall complaints: stench, sickness

Tainted Chinese drywall shows up in Katrina homes

Chinese Drywall Update: Federal Class Action Filed Against Manufacturer, Distributor

Drywall from China blamed for problems in homes

Lawyers say far more testing needs to be done.

Investigations began in 2004

Testing air

Mine was changed in 2006

Builders face drywall issues

- KNAUF
- Flue Gas Desulphurization
- Pyrophoric Oxidation
- OSHA 1008 & 1011 combined modified long term test
- NIOSH 7903
- Drywall analysis by XRD for Iron Pyrite

I just heard from a small builder in the area and he had this to say.

YouTube Videos:

Wall Street Fraud Watchdog warns Toxic Chinese Drywall [and tainted US & non-US Drywall] are game changers

Chinese Drywall Liability: Who’s on the Hook?

Drywall complaints: stench, sickness

Tainted Chinese drywall shows up in Katrina homes

Chinese Drywall Update: Federal Class Action Filed Against Manufacturer, Distributor

Drywall from China blamed for problems in homes

Lawyers say far more testing needs to be done.

Investigations began in 2004

Testing air

Mine was changed in 2006

Builders face drywall issues

- KNAUF - Flue Gas Desulphurization - Pyrophoric Oxidation - OSHA 1008 & 1011 combined modified long term test - NIOSH 7903 - Drywall analysis by XRD for Iron Pyrite

I just heard from a small builder in the area and he had this to say.

- KNAUF
- Flue Gas Desulphurization
- Pyrophoric Oxidation
- OSHA 1008 & 1011 combined modified long term test
- NIOSH 7903
- Drywall analysis by XRD for Iron Pyrite