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WHAT IS CHINESE DRYWALL? |
Chinese Drywall refers to defective or tainted drywall imported from China from 2001 to 2007 which emits sulfur gases
which usually (but not always) creates a noxious odor and corrodes copper and other metal surfaces, thereby damaging
your air conditioner, electrical wiring, copper plumbing, appliances and electronics. Chinese drywall can also cause
adverse health effects, although experts disagree whether these effects are merely irritants or present a more imminent
or chronic health hazard. Not all drywall manufactured in China is defective.
Hundreds of millions of sheets of Chinese drywall were imported from 2004 to 2006, but Chinese drywall has recently
been found in homes built or remodeled as early as 2001 and homes built as late as 2009. The presence of Chinese
drywall has been reported in 42 states, the District of Columbia and Puerto Rico. The total number of affected properties
(which includes residential and commercial) is unknown, although CPSC reports a total of 3,870 complaints.
Chinese drywall is 1/2" in width. Chinese drywall if often found in homes with untainted drywall as well, which is why
homeowners should not assume that their home is fine if they find U.S. drywall. Moreover, U.S. drywall may have
been manufactured in China and rebranded.
Does your home smell like rotten eggs or ammonia (sometimes a sweetish smell)? Is it more noticeable when entering
your home and then seems to dissipate? The level of odor varies greatly in each home as does each person’s ability to
detect the odor. Of course, the strength of the odor also depends on how much drywall was used in the home.
Significantly, some homeowners report no smell, but their home clearly has Chinese drywall. In short, do not rely on
your nose alone, particularly since many develop olfactory fatigue after being exposed to Chinese drywall.
One of the telltale signs is corrosion/pitting of the air conditioner evaporator coils (which are located inside the air
handler). Many owners are first advised of a freon leak, and as the corrosion progresses, evaporator coils eventually
need replacement. An examination of the coils typically (but not always) reveal a black sooty deposit, which may also
appear on the freon line. Chinese drywall also corrodes electrical wiring. After turning off the power (please be careful
as you could get shocked), check the electrical receptacles in your walls to see if the ground wires are blackened. The
wires in this photo have been corroded from Chinese drywall. Since many homes have mixeddrywall (i.e., good and bad
drywall), not all ground wires will show blackening. There are also cases that are not clear cut so please consult a
qualified inspector.
Signs of an electrical problem include a circuit breaker which frequently needs resetting without an apparent cause
(particularly a GFCI or AFCI); lights that flicker without any apparent cause; bright flashes or sparks anywhere in your
electrical system (this may indicate arcing conditions in the wiring); buzzing from electrical systems, switch plates,
dimmers and outlet covers that are discolored from overheating; and a smell from overheating plastic. See Florida
Department of Health Case Definition for Drywall Associated Corrosion in Residences.
What is the role of strontium? Strontium sulfide, a material that can emit corrosive gases, has been found in levels
exceeding 1200 parts per million in Chinese drywall. "[I]t is possible to misclassify homes because of other possible
sources of ... corrosion such as volatile sulfur compounds from sewer gas, well water, and outdoor contaminants that
may enter the home independent of the drywall in the home."
Click here for Task Force report. For these reasons, strontium content should not be used as the only identification of
tainted drywall. Click here for article on XRF
COULD CHINESE DRYWALL BE IN MY HOME OR BUSINESS? |
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| IS THE DRYWALL DANGEROUS? |
There is no question that the gasses emitted from Chinese drywall corrode copper and metal surfaces. Corrosion of
electrical wiring may hamper the effectiveness of smoke detectors, which clearly presents a safety concern. Low level
arcing has also been observed in some homes with Chinese drywall, which could cause an electrical fire. See CPSC
Drywall Chamber Test Results. The CPSC now reports that there are no acute or long-term electrical safety events, such
as smoking or fire. Click here. Some disagree, particularly since there have been no long term studies.
Chinese drywall was found by Lawrence Berkley National Laboratories to emit hydrogen sulfide up to 100 times greater
than non-Chinese produced drywall. Hydrogen sulfide is a hazardous gas which, in high concentrations, can be fatal.
There is also a strong association between hydrogen sulfide and metal corrosion. See CPSC list of drywall
manufacturers whose drywall has been found to emit the high levels of hydrogen sulfide. Analytical testing of Chinese
drywall samples have revealed strontium sulfide, although there remains disagreement regarding whether strontium is a
valid marker for Chinese drywall. See Public Health Statement regarding Strontium; Statement Regarding Health
Effects. See also, EPA Drywall Sampling Analysis dated May 7, 2009).
According to Dr. Patricia Williams, a University of New Orleans toxicologist, highly toxic compounds have been
found in Chinese drywall and prolonged exposure to these compounds can cause serious problems. Strontium sulfide
may be dangerous to developing children; it affects bone growth. Chronic exposure to these gases may affect the central
nervous system (including visual and sensory changes), cardiovascular system, eyes, kidneys, liver and skin. Infants,
children, the elderly and infirm (particularly those with heart and lung disease and diabetes) and pets may have an
increased vulnerability to these gases and the particulates that are released from the drywall. To date, the Florida
Department of Health believes that the levels found in Chinese drywall are not high enough to present “an imminent or
chronic health hazard at this time.” Many experts disagree.
Chinese drywall is very friable, which means it is in a state where small particles can easily become dislodged with little
friction. For this reason, even after Chinese drywall is removed, the toxic drywall particulate may remain unless property
removed. Further, the particulate from Chinese drywall may invade and adhere to other building materials in the home's
structure and personal objects within the home. Thus, cross-contamination should be factored into any remediation
protocol. According to the Florida Department of Health, it is possible for gasses to absorb and re-emit from porous
materials such as drywall and fabrics. The effectiveness of cleaning these materials is unknown. It is also unknown
whether there is any effect on concrete and lumber.
WHAT ARE THE SIGNS OF CHINESE DRYWALL? |
| LATEST NEWS |
WHICH BRANDS ARE DEFECTIVE? NEW DRYWALL GUIDE |
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BEFORE YOU REMEDIATE YOUR HOME, PLEASE CONTACT AN ATTORNEY TO DISCUSS PRESERVATION OF EVIDENCE. CLICK HERE |
| WHAT ABOUT CROSS-CONTAMINATION? |
| Talk to your attorney before you discard broken appliances, electronics or HVAC coils. . |
JUDGE FALLON PRELIMINARILY APPROVES BANNER SETTLEMENT
In June, a preliminary settlement with Banner Supply in the amount of $55 million was announced. This settlement , if approved,
would apply to all homeowners whose drywall was supplied by Banner regardless of the brand of drywall in their home.
Judge Fallon has preliminarily approved the settlement, stating that the interestof the class will be served by this settlement. “Banner
is putting up all of their insurance. Banner itself is not well economically endowed . . . ” Fallon went on to state that Banner is a
small company which is teetering on bankruptcy.
Addressing those who object to the proposed settlement, Judge Fallon remarked, “I do not see any benefit to anybody not to have all
of the [insurance] funds into at least the court.” Other attorneys in the courtroom added that Banner's insurance proceeds would
likely be exhausted by litigating individual state cases. Moreover, everything would be delayed if Banner filed for bankruptcy.
While the Banner settlement alone will not provide enough money for remediation for those with Taishan drywall, this is only part of
the puzzle. Judge Fallon has appointed an allocation committee to divide the insurance proceeds. A fairness hearing will be
conducted in February 2012.
In June, a preliminary settlement with Banner Supply in the amount of $55 million was announced. This settlement , if approved,
would apply to all homeowners whose drywall was supplied by Banner regardless of the brand of drywall in their home.
Judge Fallon has preliminarily approved the settlement, stating that the interestof the class will be served by this settlement. “Banner
is putting up all of their insurance. Banner itself is not well economically endowed . . . ” Fallon went on to state that Banner is a
small company which is teetering on bankruptcy.
Addressing those who object to the proposed settlement, Judge Fallon remarked, “I do not see any benefit to anybody not to have all
of the [insurance] funds into at least the court.” Other attorneys in the courtroom added that Banner's insurance proceeds would
likely be exhausted by litigating individual state cases. Moreover, everything would be delayed if Banner filed for bankruptcy.
While the Banner settlement alone will not provide enough money for remediation for those with Taishan drywall, this is only part of
the puzzle. Judge Fallon has appointed an allocation committee to divide the insurance proceeds. A fairness hearing will be
conducted in February 2012.
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CPSC RELEASES STUDY AND UPDATED GUIDELINES
The CPSC has released a study that found that microbiological activity was not causing the emission of sulfur gas from the tainted
drywall.
Another study released included updated remediation guidance based on studies on potential long term corrosion effects of problem
drywall on select gas components, fire sprinkler heads and smoke alarms.
The agencies continue to recommend replacing all problem drywall, along with smoke and carbon monoxide alarms and all
receptacles, switches, and circuit breakers, but not necessarily all electrical wiring. See Amendments to the Virginia Building Code
which differs in that it mandates removal of non-defective drywall in any room which also contains defective drywall.
The CPSC and HUD acknowledge in a footnote that the "remediation guidance is not intended to address any non-health and safety
remediation requirements; nor does it address what, if any, additional elements of a home may require remediation in order to
accomplish the principles set forth here. The Task Force recognizes that additional considerations for repair of economic damages
have been included in both court-ordered remediation plans and voluntary remediation plans agreed upon by various parties,
including those in the supply chain. This Remediation Guidance does not address such economic considerations that lie outside the
scope of health and safety. . ."
With respect to electrical wiring, Judge Fallon previously commented that there are practical reasons for removing all wiring, including
the inability to effectively clean wiring and the time/cost involved. Further, snipping wires may violate local building codes if there is
insufficient slack and the use of junction boxes will increase the cost. On average, rewiring costs less than 5% of the total cost so
the savings are minimal.
Moreover, the electrical insulating and coating materials may also retain the sulfur odor, which in and of itself, warrants removal.
Judge Fallon stated at the March status conference that the evidence is clear that the wire coating is not sufficient to keep the gases
out and there is corrosion under the coating. He found that all wiring should be removed and replaced. Notably, Knauf continues
to remove all drywall (defective and non-defective), as well as all wiring in homes as part of the Pilot Program.
The CPSC has released a study that found that microbiological activity was not causing the emission of sulfur gas from the tainted
drywall.
Another study released included updated remediation guidance based on studies on potential long term corrosion effects of problem
drywall on select gas components, fire sprinkler heads and smoke alarms.
The agencies continue to recommend replacing all problem drywall, along with smoke and carbon monoxide alarms and all
receptacles, switches, and circuit breakers, but not necessarily all electrical wiring. See Amendments to the Virginia Building Code
which differs in that it mandates removal of non-defective drywall in any room which also contains defective drywall.
The CPSC and HUD acknowledge in a footnote that the "remediation guidance is not intended to address any non-health and safety
remediation requirements; nor does it address what, if any, additional elements of a home may require remediation in order to
accomplish the principles set forth here. The Task Force recognizes that additional considerations for repair of economic damages
have been included in both court-ordered remediation plans and voluntary remediation plans agreed upon by various parties,
including those in the supply chain. This Remediation Guidance does not address such economic considerations that lie outside the
scope of health and safety. . ."
With respect to electrical wiring, Judge Fallon previously commented that there are practical reasons for removing all wiring, including
the inability to effectively clean wiring and the time/cost involved. Further, snipping wires may violate local building codes if there is
insufficient slack and the use of junction boxes will increase the cost. On average, rewiring costs less than 5% of the total cost so
the savings are minimal.
Moreover, the electrical insulating and coating materials may also retain the sulfur odor, which in and of itself, warrants removal.
Judge Fallon stated at the March status conference that the evidence is clear that the wire coating is not sufficient to keep the gases
out and there is corrosion under the coating. He found that all wiring should be removed and replaced. Notably, Knauf continues
to remove all drywall (defective and non-defective), as well as all wiring in homes as part of the Pilot Program.
KNAUF GLOBAL SETTLEMENT GETS
PRELIMINARY APPROVAL
Judge Fallon has entered an Order preliminarily approving the
Knauf Global Class Action settlement. Opt outs must be mailed
by April 6, 2012. A Fairness Hearing will be held on June 20,
2012. See full proposed settlement agreement.
A summary of the settlement benefits is contained in the Notice
of Pendency and Proposed Settlement of Knauf Class Action (see
pages 5-10) and is also set forth, in part, below. This information
is NOT a substitute for legal counsel nor is it intended to provide
you with any legal advice. Please contact your own attorney.
The Settlement establishes two funds – a “Remediation Fund”
(which is uncapped) and an “Other Loss Fund” ($30 million) for
the benefit of a class consisting of all persons or entities who, as
of December 9, 2011, filed a lawsuit asserting claims arising from
or relating to Knauf Plasterboard Tianjin ("KPT") Chinese Drywall.
Residential Owners and Commercial Owners have three options:
(1) they may elect to have their properties completely
remediated; (2) they may hire a contractor (which must be
approved) and payments will be made directly to the contractor;
or (3) they may receive a discounted cash-out payment subject to
certain disclosure requirements and, if applicable, a release from
their lender. For mixed properties (i.e., KPT and another brand of
Chinese drywall), owners may elect either options 2 or 3 above,
however, payment will be discounted by multiplying the payment
by the percentage of KPT drywall.
Under Options 1 and 2, residential owners will also receive a lump
sum payment of $8.50 (for homes under 3,500 sq. ft) or $10.00 per
sq. ft. (for homes over 3,500 sq. ft). These monies are intended
to compensate owners for damage to personal property, moving,
storage and temporary housing expenses.
Residential Owners may also be entitled to reimbursement of
alternative living expenses arising from the need to vacate the
affected property prior to remediation. Commercial Owners may
also be entitled to recover some economic losses.
In addition, Owners with provable economic losses resulting from
foreclosures and short sales caused by the presence of KPT
drywall may be eligible for compensation under the Other Loss
Fund.
The Other Loss Fund will also provide a mechanism for resolving
personal injury claims. To be eligible for recovery for personal
injuries, Class Members must have sought medical treatment for
the alleged bodily injury prior to December 9, 2011 and have
received a contemporaneous diagnosis from a treating physician
of an alleged injury caused by KPT drywall.
No class member is required to pay attorney's fees and costs
from their own pocket or from any recovery under the Settlement
except for bodily injury.
Again, this is not intended as legal advice and does not cover all
situations contained in the settlement. Please consult your own
attorney to discuss your individual situation.
PRELIMINARY APPROVAL
Judge Fallon has entered an Order preliminarily approving the
Knauf Global Class Action settlement. Opt outs must be mailed
by April 6, 2012. A Fairness Hearing will be held on June 20,
2012. See full proposed settlement agreement.
A summary of the settlement benefits is contained in the Notice
of Pendency and Proposed Settlement of Knauf Class Action (see
pages 5-10) and is also set forth, in part, below. This information
is NOT a substitute for legal counsel nor is it intended to provide
you with any legal advice. Please contact your own attorney.
The Settlement establishes two funds – a “Remediation Fund”
(which is uncapped) and an “Other Loss Fund” ($30 million) for
the benefit of a class consisting of all persons or entities who, as
of December 9, 2011, filed a lawsuit asserting claims arising from
or relating to Knauf Plasterboard Tianjin ("KPT") Chinese Drywall.
Residential Owners and Commercial Owners have three options:
(1) they may elect to have their properties completely
remediated; (2) they may hire a contractor (which must be
approved) and payments will be made directly to the contractor;
or (3) they may receive a discounted cash-out payment subject to
certain disclosure requirements and, if applicable, a release from
their lender. For mixed properties (i.e., KPT and another brand of
Chinese drywall), owners may elect either options 2 or 3 above,
however, payment will be discounted by multiplying the payment
by the percentage of KPT drywall.
Under Options 1 and 2, residential owners will also receive a lump
sum payment of $8.50 (for homes under 3,500 sq. ft) or $10.00 per
sq. ft. (for homes over 3,500 sq. ft). These monies are intended
to compensate owners for damage to personal property, moving,
storage and temporary housing expenses.
Residential Owners may also be entitled to reimbursement of
alternative living expenses arising from the need to vacate the
affected property prior to remediation. Commercial Owners may
also be entitled to recover some economic losses.
In addition, Owners with provable economic losses resulting from
foreclosures and short sales caused by the presence of KPT
drywall may be eligible for compensation under the Other Loss
Fund.
The Other Loss Fund will also provide a mechanism for resolving
personal injury claims. To be eligible for recovery for personal
injuries, Class Members must have sought medical treatment for
the alleged bodily injury prior to December 9, 2011 and have
received a contemporaneous diagnosis from a treating physician
of an alleged injury caused by KPT drywall.
No class member is required to pay attorney's fees and costs
from their own pocket or from any recovery under the Settlement
except for bodily injury.
Again, this is not intended as legal advice and does not cover all
situations contained in the settlement. Please consult your own
attorney to discuss your individual situation.