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Some homeowners allowed to opt out of Chinese drywall settlement

Drywall is a popular building material used throughout the nation including for constructing interior walls. Several years ago it came to light that drywall from China used in thousands of homes was not up to the expected standard. In addition to causing health problems such as sore throats and eye irritation, it also corroded wiring and emitted a foul odor.

42 states including Pennsylvania have reported problems with drywall to the Consumer Product Safety Commission. As would be expected in a case such as this, many people in whose homes the drywall had been installed filed product liability lawsuits seeking compensation for the faulty construction material. These class action lawsuits filed throughout the country were consolidated and the pre-trial proceedings were all heard by a federal judge located in New Orleans.

Earlier this month a Broward County circuit judge entered a ruling affecting around 2,000 Florida homeowners. The ruling allows the homeowners to opt out of a proposed federal settlement worth $55 million. Of that amount it unclear as to how much would be for those who had sued Banner Supply Co., a Florida distributor located in Miami.

Due to the concern that Florida homeowners would not receive enough money in the proposed settlement to cover the cost of repairs, plaintiffs in the lawsuit may elect to opt out of the settlement and file their own lawsuit against the distributor in an effort to obtain a better result. The cost to repair each home is estimated to be over $100,000.

There is certainly more to come on the issue of the drywall from China. We will continue to monitor the situation and post as updates become available.

Source: The Herald Tribune, "Judge rules homeowners can opt out of drywall deal," Sept. 12, 2011

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