Dear Friends,
There has been a lot of exciting news in the world of Chinese drywall, including two verdicts in the Multi District Litigation ("MDL") that set forth a remediation protocol requiring the gutting of a home down to the studs; a significant verdict against a drywall supplier in Florida who knew Chinese drywall was defective in 2006, yet said nothing; Knauf's settlement with least two large national homebuilders; and Knauf's settlement with two homeowners in Louisiana on the eve of trial. Despite this good news, the rest of us anxiously await the disposition of our legal claims. The hot summer, which brings on more failed air conditioners and odors, only intensifies our frustration. We are cautiously optimistic, however, that a global settlement is on the horizon and we all look forward to the day that we can repair our homes and rebuild our lives.
Sincerely,
Chinesedrywall.com
help@chinesedrywall.com
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BEFORE YOU REMEDIATE . . .
Many people are contemplating remediating their homes. Some have already begun. The only governmental direction we have so far is an interim guidance from the Consumer Product Safety Commission (“CPSC”) which recommends removal of all drywall and wiring. Note, this guidance does not include remediation of items that do not present an immediate risk to health or safety and, therefore, is not a complete remediation protocol.
We also have two legal opinions issued by Judge Fallon in the MDL, who ruled that the safest and most effective means for remediation is completely gutting the home to the studs, along with extensive cleaning and airing out the property for 30 days. CLICK HERE TO REVIEW RULINGS.
Many contractors are performing extensive remediation in accord with Judge Fallon’s protocol while others are providing chemical treatments or partial remediation. While it is not our place to offer any opinion with regard to the various types and levels of remediation and, indeed, research is still ongoing, we recommend that you obtain a thorough, written protocol which sets forth each and every aspect of the remediation and contains the exact cost to the homeowner, including any extras that are not included (e.g., upgraded carpet, paint, tile). Please address the potential for breakage during the reconstruction process, including cabinets and countertops.
The protocol should be in writing to obviously protect the homeowner, but it is also important so the homeowner has documentation of what was done for resale and insurance purposes. The homeowner should also request a certificate of insurance from the contractor and discuss whether the contractor will warrant his/her work. Please note that a contractor’s insurance policy is not the same as a warranty. If a homeowner chooses to use a protocol which consists of any chemical treatment, we suggest asking for a Material Safety Data Sheet (“MSDS”) so you know what chemicals are being used in your home.
Prior to any remediation, we strongly recommend that you have your attorney review the protocol and discuss proper preservation of evidence. Please be advised that Judge Fallon has issued an Order (a copy can be found on www.chinesedrywall.com) that requires the preservation of drywall samples, markings, wiring and portions of the evaporator coil. You may waive your claim if you fail to comply with this Order. Note, an initial inspection report confirming the presence of Chinese drywall (even if samples were taken and you have photographs) is not sufficient.
The homeowner should also be aware that your damages for remediation (this is separate and apart from consequential damages, like personal property, temporary housing, etc.) may be capped by the amount that you actually spent for remediation. For this reason, partial remediation and/or utilizing unproven methods in an effort to save money may negatively affect your claim, not to mention the possibility that the remediation will be unsuccessful. Please proceed with caution.
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Thank you
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We are flattered that so many people from all over the country have visited our website over the last 19 months. In April, a groundbreaking month, we had over one million hits.
Chinesedrywall.com has become the site "of record" and we continue to strive to provide you with objective information in a timely fashion and to answer all of your emails. Please visit our website for daily/weekly news. |
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NOT ALL FORBEARANCE AGREEMENTS ARE CREATED EQUAL
Most homeowners are unable to pay a mortgage on a tainted home and pay rent for temporary housing quarters and, therefore, are seeking mortgage forbearances. At first, it was very difficult to convince lenders to grant forbearances. In the last few months, however, several major lenders have now made the process much easier, and in the last few weeks, Fannie Mae and Freddie Mac are apparently now willing to assist as well.
Homeowners are cautioned to read the fine print as some terms may not be favorable to all homeowners. Some lenders are requiring homeowners to agree that any monies recovered in litigation will be made payable to both the lender and homeowner and will require the homeowner to use the settlement proceeds to remediate their home. Other lenders are requiring homeowners to admit that they are in default and/or agree to the amounts due an owing (which could result in the waiver of certain defenses in a foreclosure proceeding). While this may not be objectionable to some homeowners, please consult an attorney if you have any questions or concerns before signing a forbearance agreement.
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Does Chinese drywall present a risk of fire?
Yes, according to a recent report on the CPSC's website. The report cites several concerns, including deterioration of electrical connections that could develop "hot spots resulting from overheating and possibly fire;" damage to circuit tracers causing failure of protective devices such as GFCIs, arc-fault circuit interrupters and smoke alarms which can present shock and fire hazards from loss of protection; and potential gas leakage due to corrosive pitting of piping, which could present a fire or explosion hazard.
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