[StBernard] Chinese drywall lawsuit streamlined in federal court

[Westley Annis]

Chinese drywall lawsuit streamlined in federal court
By Rebecca Mowbray, The Times-Picayune 
November 03, 2009, 8:35AM
One of the leading defendants in a consolidated federal court lawsuit
targeting drywall manufactured in China has agreed not to demand that
plaintiffs use international rules in serving legal papers to the company.
The move should speed up the proceedings, cut down on costs and further
consolidate the disputes in federal court. 


Knauf Plasterboard Tianjin Co. Ltd., one of the major manufacturers in the
case, has made a one-time offer that homeowners who sign up for the omnibus
class action by Dec. 2 and show pictures or other proof that they have KPT
drywall in their homes won't have to pay $15,000 to serve the company in
China through the Hague Convention, according to an order issued Monday by
U.S. District Court Judge Eldon Fallon. 

The offer applies only to the consolidated federal litigation, not
individual cases. 


Kerry Miller, a New Orleans attorney who represents KPT and serves as
defense liaison counsel in the consolidated litigation, said his client is
making it easier for people to get involved in the federal proceedings
because KPT wants to get a handle on what it's dealing with for claims. By
its move, KPT also hopes to spur other drywall manufacturers to follow suit.


"It's all about streamlining cases. What is the universe of claims? That's
what we're trying to resolve, " Miller said. "We would also hope our
response pushes the others to become engaged and to be problem-solvers." 

Leonard Davis, a partner with Herman, Herman, Katz & Cotlar, the New Orleans
firm that serves as plaintiffs liaison counsel, said the move will reduce
the time and cost involved in pursuing the case. "It's a substantial
development in the case, " he said. 

Plaintiffs allege that the drywall emits gases that corrode materials in
people's homes and make them sick. 

Paul Lea, a Covington attorney with about a dozen Chinese drywall cases,
said Monday's development makes the federal litigation seem more accessible.


So far, Lea has been concentrating his efforts on suits against builders and
their insurers in state court because he's felt that if his cases succeed,
they'll have a greater chance of giving his clients a full recovery.
Monday's development is not a "game-changer, " because plaintiffs have
always had the right to pursue both federal and state court tracks, but
Judge Fallon's order will make it easier for homeowners to also take a shot
at the manufacturers. 

"I tend to think that you should play both sides of that fence, " he said. 

The Dec. 2 deadline for filing is a hard deadline, because those homeowners
will be incorporated into the master complaint over Chinese drywall that
will be filed Dec. 9. The omnibus complaint will not be amended at a later
date to add more people. Plaintiffs who are signing up also must complete a
profile form by Dec. 14. 

Judge Fallon will hold a conference call on the developments on Wednesday at
11 a.m.