[StBernard] Future of Chinese drywall claims to be decided by U.S. appeals court in New Orleans

[Westley Annis]

Future of Chinese drywall claims to be decided by U.S. appeals court in New
Orleans
Print Katherine Sayre, NOLA.com | The Times-Picayune By Katherine Sayre,
NOLA.com | The Times-Picayune 
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on October 09, 2013 at 7:00 AM, updated October 09, 2013 at 7:10 AM

The future of thousands of homeowners' damage claims against a major
supplier of Chinese drywall will be argued Wednesday morning (Oct. 9) in a
federal appellate court in New Orleans.

Taishan Gypsum Co. Ltd. -- one of two major manufacturers accused of
supplying toxic drywall -- made and shipped 1.8 million sheets of the
building material to the U.S. between 2005 and 2009. Taishan has argued that
U.S. courts don't have jurisdiction over the company.

As many as 20,000 property owners in Louisiana, Florida, Alabama,
Mississippi, Texas and Virginia installed the material during frenzied
building after hurricanes Katrina and Rita and a nation-wide housing boom.

Homeowners complained of foul odors, damage to appliances, health issues
such as skin irritation and breathing problems and blackening of copper and
silver.

U.S. District Judge Eldon Fallon in New Orleans is overseeing more than
10,000 claims over Chinese drywall.

Taishan seeks to have the claims against it dismissed and a default
judgement of $2.6 million against the company overturned. Fallon issued the
judgement after the company initially did not respond to the suits.

If the company loses the appeal, it could be held liable for damages at
4,000 to 5,000 properties in the future, according to lawyers representing
property owners.

Meanwhile, thousands of other families have seen closure in their years-long
legal fight.

In February, Fallon approved five class-action settlements with
manufacturer, Knauf Plasterboard Tianjin and associated companies Interior
Building Supply, Banner Supply Co. and L&W Supply Corp.

The settlements were worth an estimated $1 billion for more than 10,000
property owners whose homes and businesses were damaged, according to
plaintiffs' lawyers.