Chinese Drywall Litigation Update

The Sarasota Herald-Tribune reported yesterday that Florida's Senate Community Affairs Committee held a hearing to discuss both legislative and state agency action to prevent builders from using tainted Chinese drywall.  The article reports that Florida is considering the following legislative action:

• Providing relief on mortgage payment for homeowners trying to rehabilitate their homes;
• Developing a standard for remediating homes and certifying them as being free from the drywall problems
• Allowing homeowners to receive a tax break to offset their rehabilitation costs; and
• Providing help to homeowners trying to deal with insurance companies over the cost of the home rehabilitation.

The Consumer Product Safety Commission has received 1,051 reports from residents in 27 states who believe that Chinese drywall impacted their health or corroded metal components in their homes.  Meanwhile, Cain Burdeau, of the Associated Press, indicated that the Chinese drywall makers may ignore the multi-district litigation in New Orleans, which includes roughly 300 lawsuits.  Judge Eldon Fallon, who presided over the Vioxx litigation, has already found one Chinese company in contempt of court for ignoring the lawsuits.

UPDATE: New York Times story can be found here.

ECB