Bellwether Chinese Drywall Trials Set to Start

The first bellwether trials in the Chinese drywall litigation are scheduled to begin in just a couple of weeks. The outcome of these “test” trials will play a huge role in the ultimate resolution of the Chinese drywall crisis.

The first Chinese drywall trial will involve a case from Virginia, and Taishan Gyspum, which is actually controlled by the Chinese government. As we reported last year, a a default judgment has already been issued against Taishan for failing to respond to lawsuits.

More than 3,000 people across the country have filed suit against the manufacturers, suppliers, builders and other entities that played a role in the Chinese drywall crisis. One single class action lawsuit alone filed against Knauf Gips KG, its Chinese affiliate, Knauf Plasterboard Tianjin Co. Ltd., and 600 other defendants, involves nearly 2100 plaintiffs from Florida, Mississippi and Alabama.

All of the Chinese drywall lawsuits filed in federal courts have been consolidated in the US District Court in New Orleans under Judge Eldon E. Fallon as part of a multidistrict litigation (MDL).

The Consumer Products Safety Commission (CPSC) has received more than 2,700 complaints from dozens of states regarding defective Chinese drywall. Last summer, tests conducted by the Environmental Protection Agency found that Chinese-manufactured drywall contained elevated levels of strontium sulfide, as well as the presence of several organic compounds associated with the production of acrylic paint that were not present in samples of U.S.-made drywall. Other tests released in November by the CPSC of 51 homes confirmed that the presence of hydrogen sulfide is the essential component that causes copper and silver sulfide corrosion found in Chinese drywall homes. Federal investigators are still trying to determine what health risks exposure to drywall gases might pose.

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