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Downtown West Palm Beach
Esperanté Building
222 Lakeview Avenue
Suite 210
West Palm Beach,
FL 33401
Phone: (561) 659-3300
Fax: (561) 659-1911 |
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Construction Law News Alert |
Informing clients and friends of the firm about legal trends, news or items of interest. |
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Chinese drywall - claims of widespread defects remain unsettling |
Lawsuits predicted to rise along with frustrations of homeowners,
vendors, developers, contractors, and others |
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Floridians have more to worry about than their declining property values. Another major consequence of the housing boom gone bust: ramifications from the installation of potentially problematic Chinese drywall. Such drywall became commonplace from about 2004 to 2006, years when builders had to contend with Florida’s seemingly insatiable demand for new construction. The supply was further strained in the wake of hurricanes Katrina and Wilma, which caused building booms of their own. Chinese imports seemed like an easy fix to meet the demand. |
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A significant amount of Chinese drywall was imported into the United States, with nearly 60 percent of it passing through Florida ports. More than 100 million pounds of Chinese drywall were apparently off-loaded in Miami, 80 million pounds through Port Everglades and 50 million pounds through Tampa as well as other Florida ports of call. |
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That same drywall that back then seemed to be a cure for the aches of short supply is now believed to be the cause of increasing reports of noxious odors in homes and corrosion to piping, air conditioning and refrigerator coils, wire tubing and other household items. The source is claimed to be reportedly high levels of sulfur contained within the drywall. However, the primary manufacturer of the Chinese drywall, Knauf, has indicated in a statement that its expert toxicologist found no human health concerns associated with the drywall. |
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The Florida Department of Health has received more than 150 homeowner complaints about the drywall and is currently investigating these issues. In a March 20, 2009 report, the Florida Department of Health confirmed that Chinese drywall generates a sulfuric odor when exposed to elements of heat and moisture and noted that “[t]here is a distinct difference in drywall manufactured in the United States and those that were manufactured in China.” A copy of this report can be accessed here. The report, though preliminary in nature, does not draw any specific conclusions as to whether this drywall may pose a health problem, but further testing is ongoing.
Lawsuits to date have identified manufacturers, suppliers, installers and home builders as parties to these disputes. In 2009, even more installation of Chinese drywall in Florida has been detected in Florida homes and at least three class actions lawsuits have been filed to date involving residents and homes in Miami-Dade, Broward and Lee County.
It is expected that the number of complaints will continue to increase as estimates suggest such drywall has been used in tens of thousands of homes in the United States. Condominium associations and homeowner associations which may have been responsible for expenses relating to repairs of air conditioning and other common elements potentially damaged by fumes omitted from the Chinese drywall are beginning to investigate their right of recovery. Certain real estate professionals are requiring prospective purchasers of all homes to sign a Chinese drywall disclosure and release in an attempt to insulate real estate professionals from future claims.
While the disposition of these many cases and complaints remain unclear, it is apparent that additional lawsuits, additional claims and additional defendants are on the horizon.
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