Chinese Drywall Class Action Lawsuits

Sarasota, FLChinese Drywall class action lawsuits have been filed in Florida (where most of the problems have occurred) and more recently in North Carolina and Virginia. Homeowners allege that the Chinese Drywall has damaged their homes by corroding metal--and it is making them sick.

It is estimated that more than 100,000 homes may have been built with contaminated drywall, with more than 35,000 in Florida. More complaints are coming in from other states including Mississippi, Louisiana and Virginia.

The Herald Tribune reported that at least 550 million pounds of Chinese drywall entered the United States since 2006 through more than two dozen U.S. ports, enough to potentially construct at least 60,000 average-size homes. Nearly 60 percent of the drywall came in through Florida ports, enough to build 36,000 homes.

Lennar Homes Class Action
Lennar Corp., one of the largest home builders in the US, admitted to building homes with imported Chinese drywall between November 2005 and November 2006. An environmental firm contracted by Lennar conducted air sampling in homes they built which confirmed the presence of sulfur. At that time, Lennar admitted to at least 80 homes having been built with the sulfurous drywall in Southwest Florida, but in March 2009 one homeowner that LawyersandSettlements spoke with said Lennar has built thousands and thousands of homes that could be affected by Chinese drywall.

He lives in a Lennar Homes community of about 500 houses; most of the residents are upset and concerned, not only for the health but the decreased value of their home. Their only recourse is a lawsuit.

According to the Associated Press, the named plaintiffs in the class action lawsuit against Lennar, filed in the US District Court for the Southern District of Florida, claim they bought two homes built by Lennar that were made with the Chinese drywall, which emits sulfur gases and other fumes.

In its filing with the Securities and Exchange Commission, Lennar said it established reserves for the estimated cost of replacing drywall and other materials in its homes, but noted that it expects any additional costs beyond its reserves to be covered by insurance, the Associated Press said. In January, the company promised to absorb all costs related to the drywall replacement, including relocation expenses for people living in the houses.

Lennar also filed suit against several manufacturers and suppliers of Chinese drywall, including the Chinese firms Knauf Plasterboard and Tianjin Co., and Taishan Gypsum, controlled by the Beijing New Building Materials Public Limited Co., (BNBM), which is a state-owned entity controlled by the Chinese government, as well as Banner Supply of Florida, claiming the defendants sold "defective gypsum" drywall that was installed in homes built by Lennar, which "caused substantial damage" to the company.

Lennar isn't the only builder to have used Chinese drywall. Other Florida builders include Taylor Morrison, WCI, Meritage Homes, Ryland Homes, Transeastern and Standard Pacific.

North Carolina Class Action
A North Carolina couple were the first to file a lawsuit: Mary and Daniel Flannigan said they had a "mysterious odor" in their home for years and finally discovered the reason after seeing news reports about Chinese drywall problems in Florida. The couple said their health has suffered, from asthma to pneumonia to chronic headaches, and their water heater, furnace and air conditioner corroded.

In May 2009 several Washington, D.C., law firms filed suit on behalf of three North Carolina homeowners who say the drywall emitted gases that nauseated them, irritated their eyes and throats, and caused shortness of breath and fatigue. According to the suit filed in US District Court, the gas also damaged metal utensils, electronics, wiring and appliances.

More Lawsuits to Come?
Usually, drywall is made in the US but the housing boom and rebuilding after the 2006 hurricane season caused a shortage and many builders purchased drywall from China. According to attorney Richard Lewis, of Hausfeld LLP, drywall problems are not limited to drywall imported from China. Homes containing drywall made by US manufacturers are showing the same corroded metal surfaces.