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WHAT IS CHINESE DRYWALL? |
Chinese drywall refers to drywall imported from China (from approximately 2001 to 2007) which contains
extraneous metals and minerals, such as sulfur, strontium and iron. Under certain environmental conditions
(typically warm, humid climates), the drywall will emit sulfur gasses. These gasses create a noxious odor and
corrode copper and other metal surfaces, which can damage one's air conditioner, electrical wiring, copper
plumbing, appliances and electronics. Chinese drywall can also cause adverse health effects, which are primarily
irritant and temporary in nature. Long term health effects are unknown. Not all drywall manufactured in China is
defective.
extraneous metals and minerals, such as sulfur, strontium and iron. Under certain environmental conditions
(typically warm, humid climates), the drywall will emit sulfur gasses. These gasses create a noxious odor and
corrode copper and other metal surfaces, which can damage one's air conditioner, electrical wiring, copper
plumbing, appliances and electronics. Chinese drywall can also cause adverse health effects, which are primarily
irritant and temporary in nature. Long term health effects are unknown. Not all drywall manufactured in China is
defective.
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
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
COULD CHINESE DRYWALL BE IN MY HOME OR BUSINESS? |
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| IS CHINESE DRYWALL DANGEROUS? |
The gasses emitted from Chinese drywall corrode copper and metal surfaces. Corrosion of electrical wiring may
hamper the effectiveness of smoke detectors, which 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. Click here.
Some disagree, particularly since there have been no long term studies. According to Lawrence Berkley National
Laboratories, Chinese drywall can 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 also
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.
However, experts disagree.
To date, the Florida Department of Health has opined that the levels found in Chinese drywall are not high enough to
present “an imminent or chronic health hazard at this time.” Some of these findings appear to be based upon
industrial studies of workers who were exposed to reduced sulfur gases for 8 hours a day at levels much lower than
those found in Chinese drywall.
WHAT ARE THE SIGNS OF CHINESE DRYWALL? |
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WHICH BRANDS ARE DEFECTIVE? NEW DRYWALL GUIDE |
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BEFORE YOU REMEDIATE YOUR HOME, PLEASE REVIEW THE NEW PRESERVATION OF EVIDENCE ORDER. |
JUDGE FALLON PRELIMINARILY APPROVES BANNER SETTLEMENT
In June 2011, 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. See Proposed
Allocation Plan
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.
In June 2011, 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. See Proposed
Allocation Plan
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.
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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. The
deadline for opt outs and objections is April 6, 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.
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.
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.
Judge Fallon has entered an Order preliminarily approving the Knauf Global Class Action settlement. The
deadline for opt outs and objections is April 6, 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.
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.
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.
Hundreds of millions of sheets of Chinese drywall were imported from 2004 to 2006, but Chinese drywall has 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 3,924
complaints.
Chinese drywall is 1/2" in width. Chinese drywall can be 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.
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 3,924
complaints.
Chinese drywall is 1/2" in width. Chinese drywall can be 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.
OPT OUT DATES POSTPONED
The deadlines for the Knauf, Banner, L&W and INEX opt outs
and objections and the Fairness Hearing for these
settlements have been postponed pending the global
insurance settlement, which is anticipated to be finalized
shortly. See Order.
The deadlines for the Knauf, Banner, L&W and INEX opt outs
and objections and the Fairness Hearing for these
settlements have been postponed pending the global
insurance settlement, which is anticipated to be finalized
shortly. See Order.
JUDGE ENTERS ORDER REGARDING
SELF-REMEDIATED HOMES
For those homeowners with Knauf drywall who already self
remediated , Judge Fallon entered an Order implementing a
"pilot type program aimed at developing a procedure to
resolve" these claims. See Pre-Trial Order No. 26.
SELF-REMEDIATED HOMES
For those homeowners with Knauf drywall who already self
remediated , Judge Fallon entered an Order implementing a
"pilot type program aimed at developing a procedure to
resolve" these claims. See Pre-Trial Order No. 26.
MONTHLY MDL STATUS CONFERENCE
June 14, 2012 at 11:00 a.m. EST - 800-260-0712, access code
242933. A hearing will be held on Taishan's personal
jurisdictional motions following the status conference.
June 14, 2012 at 11:00 a.m. EST - 800-260-0712, access code
242933. A hearing will be held on Taishan's personal
jurisdictional motions following the status conference.
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