Chinese Drywall Class Actions Consolidated in New Orleans

Tampa, FLEven though the Chinese drywall debacle is centered largely in Florida, the legal eagles involved in several China drywall class action lawsuits will be heading to the Big Easy in order to litigate Chinese drywall problems.

According to the June 15th, 2009 edition of the Tampa Bay Business Journal (TBBJ) the various class action lawsuits that have been filed alleging problems with drywall manufactured in China, will be consolidated and tried in New Orleans.

The TBBJ quoted the Times-Picayune in New Orleans as reporting that the Judicial Panel on Multidistrict Litigation has moved to assign the issue to US District Court Judge Eldon Fallon in New Orleans.

The Judicial Panel looks at similar cases filed in different federal courts, then acts to consolidate those cases before a single judge. In addition to Florida, Chinese drywall lawsuits have sprung up in Virginia, Louisiana and Ohio, among other states.

The Florida Department of Health, as of June 15th, was tracking more than 440 complaints surrounding allegedly defective drywall imported from China. The affected drywall allegedly emits an acrid smell not unlike rotten eggs and has been known to turn pipes and air conditioning coils black, not to mention driving people from their homes after a sulfur-like smell has become too much to bear.

The allegedly defective Chinese drywall was brought in at the height of the most recent building when demand outstripped supply. Following the devastation caused by hurricanes Katrina and Wilma in 2005, the heightened rebuilding activity proved too much for domestic suppliers. Most contractors use drywall manufactured in the US, but a combination of shortages driven by the building boom and attractive pricing prompted some contractors and suppliers to look to China for alternative product.

Some houses were built exclusively with Chinese drywall, whereas others were found to contain Chinese drywall interspersed with US-sourced product.

Chinese drywall problems first appeared in the various cities dotting Florida's Gulf Coast in the southwest sector of the state, and attorneys in South Florida argue that Miami would have been the preferred location for the Chinese drywall class action consolidation, given the observation that the majority of problems with regard to the imported product occurred there.

The Tampa Bay Business Journal also made the point in its June 15th story that such consolidations of class actions can extend a favorable economic impact to the region hosting the consolidation. The hundreds of attorneys, expert witnesses and others involved in the proceedings would require accommodation, meals and transportation.

Instead, the proceedings are heading to New Orleans.

The Chinese drywall problem is just the latest in a series of products originating from the emerging economic powerhouse that have proven, or have been alleged to be defective. The problem with China drywall, however is that it affects people right where they live—if they can even go on living in their homes. For many, the Chinese drywall problems have meant that remaining in their homes or vacation properties, presents a significant challenge. For suppliers, the issue is yet another example of the need to cast a wary eye to anything stamped 'Made in China.'