Chinese Drywall Debacle Sparks Lawsuits

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Problems with defective Chinese drywall in Florida have led to two separate lawsuits.  Late last week,  the Bonita Springs law firm of Parker Waichman Alonso LLP filed a class action lawsuit on behalf of Florida consumers whose homes were ruined by the defective Chinese drywall.  Meanwhile, Miami-based Lennar Homes, the builder at the center of many drywall complaints, has  sued the manufacturer of the material, as well as the supplier and contractors who installed it.

Over the past several months, owners of newer homes in South Florida have been complaining of drywall that smells like rotten eggs. In several cases, they have had to leave their home because the smell was so bad.  In addition to the putrid smell, many South Florida homeowners have reported problems with air conditioning and other systems that are likely related to the defective Chinese drywall.  Some spent hundreds – even thousands of dollars – to have air conditioning, pipes and wiring repaired.

Usually, drywall is manufactured in the United States, but a shortage between 2004 and 2006 prompted many builders to buy drywall from China.  Most of the reported problems stem from drywall imported from China during Florida’s construction boom years of 2004-2005.  Knauf Plasterboard Tianjin Co. Ltd. of China, a  subsidiary of German-based manufacturer Knauf Group, is the company at the focus of Florida’s drywall problems.

The Parker Waichman Alonso class action lawsuit names Knauf Plasterboard Tianjin Co., Ltd., and  Knauf Group as defendants.   The trading company that imported the drywall, Rothchilt International Limited, is also named in the suit, as was  Florida-based Banner Supply.

The class action lawsuit alleges  10 million square feet – about 200,000 sheets -  of the drywall was used in Florida homes.  The lawsuit, which was filed in U.S. District court in Fort Myers, charges that the defendants negligently manufactured and sold the defective drywall, which was “unreasonably dangerous” in normal use because it caused corrosion to air-conditioning and electrical components, and caused coughing and irritation of sinuses, eyes and throats. It goes on to state that, “when combined with moisture in the air, these sulfur compounds create sulfuric acid.”

“Defendants’ drywall was made with waste material from scrubbers on coal-fired power plants, also called ‘fly ash.’ These materials can leak in the air and emit one of several sulfur compounds including sulfur dioxide and hydrogen sulfide,” the complaint said.

Lennar Homes, one of the builders hardest hit by the Chinese drywall debacle, has also filed suit against Knauf Plasterboard and Banner, as well as another company, Taishan Gypsum.  Lennar’s lawsuit claims the defendants sold “defective gypsum” drywall that was installed in homes built by Lennar, which “caused substantial damage” to the company.  The Lennar lawsuit also charges 12 installers with breach of contract and breach of express and implied warranty. Lennar claimed that independent subcontractors installed the defective Chinese drywall in some homes, and it was  unaware it was being used.

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7 Responses to “Chinese Drywall Debacle Sparks Lawsuits”

  1. Rick Hollister Says:

    I think it is a little premature to put a number on this case. We have not yet agreed on the analytical testing. We have not even determined the remedial scope or protocols will be to clean this mess up. Good luck getting any money out of the Chinese companies. Then there are the insurance companies. Some of the contractors and distributors are not even covered for this so the insurance companies will say. We do not know what long term damage to the health or the property is going to be. Too many questions are still I unanswered.
    I have met with some of the top experts in the IAQA field and from around the country in the last month and as an environmental investigator and consultant for 15 years, I think we have a long road ahead of us. Beware of any guarantee solutions to fixing the problem i.e. fogs, foam, and sprays. We don’t even know if this stuff has embedded itself into the wooden substrates in the wall. We have been getting calls from Florida, Alabama, Louisiana, Mississippi, and Virginia Beach Virginia now there is evidence of possible fraud that may be able to be linked to either the manufacture or distributors.
    We would be interested in hearing from other people experiencing Chinese Sheetrock problems as every case seems to have different details and precursors. We are putting a team of experts together to tackle the long term effects and to opine on the scope and protocols to properly remediate the homes and all the effected personal property.
    Rick Hollister CEI, CMR, CLI
    Environmental Administrators, Inc
    Tallahassee, Fl.
    rhollister@environmentaladministrators.com

  2. RICHARD A DOHERTY Says:

    I have a home in Meadows of Estero .Has this subdivison been tested for drywall issues,or will Gov Crist have his Task Force look into testing Meadows of Esterro?

  3. Ricardo Arriarte Says:

    The main importer of the drywall was La Suprema Enterprises or La Suprema Trading whose owner is Salomon Homsany, Alias Salomon Abadi, a fugitive of the Panamanian Justice. This guy should be interviewed to find out how his company will respond to this disaster.

  4. Ricardo Again Says:

    If Mattel will pay 2.3 Millons fine for toys hazard. how much gonna pay the chinese Drywall importers?

  5. Bob Says:

    Ricardo, I’m a real Estate Broker and I was just viewing a hoome listed in the Meadows of Estero. Unfortunately, as I was leaving I noticed a crew of men were tearing out all the drywall in one of the units. I spoke to the contractor and he said that it was chinese drywall. He is stripping the entire coach home back to the metal studs so the owner can install new drywall. No wonder those units are selling so cheap!

  6. Valery 321 Says:

    So not only people will pay rent and mortgage at the same time, they gonna spend on repairing their homes, have a risk the health of their children, lost their life savings.

    Now also the properties have had chinese drywall, becomes to have less value and will be more difficult to sell when we need it.

    Finally someone has to answer, cause we’re not talking about a toys hazard, that is much more than that, there are 35.000 properties in Florida and 100,000 across the country.

    There was someone who filled their pockets with this dirty business. Where are them? facing the problem. The authorities waiting for you.

    Really we do not give cheapest our properties just because they have the virus.

  7. Lori Says:

    We were finally able to get our deposit back on a property we almost purchased at the Meadows Of Estero. We thought we were getting a steal at $127,000. for a 2,878 sq ft coach home (orig. sold for &400,000). The inspection on the property tested positive for the chinese drywall. We found out it would cost us around $170,000. to have the place stripped to the studs, replace the wireing, new sheetrock, and a new airconditioning unit. This along with last years tax record amt of $7200. and hoh fees of $454.00 monthly!!!! We thought the taxes would be less, because we were paying less (that’s not the case with a bank owned property). Next time we’ll be very careful :)

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