Insurance Dispute Lawyer Blog

In an effort to shore up support for those who have Chinese drywall in their homes, senators from several states have called for FEMA assistance to be offered to those with the toxic wallboard installed. FEMA, an acronym for the Federal Emergency Management Agency, was a bit part of the recovery effort carried out in New Orleans and responds to disasters nationwide.

The involvement of FEMA in the matter would be a huge step towards opening up funding to remove and replace Chinese drywall in homes where the owners might not have enough funds to take action. What’s more, it would be a compelling acknowledgment of the problems the wallboard causes by the government and could prove to be an important step towards changing the situation.

The Chinese drywall crisis has prompted a group of U.S. Senators to call on the Federal Emergency Management Agency (FEMA) to help homeowners. The group wants FEMA to provide rental assistance to people who have had to leave their homes because of tainted Chinese drywall.

A couple weeks ago the Louisiana Recovery Authority set aside $5 million dollars for assistance to residents who are suffering through Chinese drywall in their homes. This is an important step in the right direction towards the removal and replacement of the toxic wallboard. The Times-Picayune reports

LRA Executive Director Paul Rainwater said the authority’s staff will now design a program and make it available for public comment. The details of the application process, eligibility requirements and how the program would work are all still being developed, he said.

“You’re not even in the batter’s box, you’re still in the dugout talking about this thing,” Rainwater said in describing the status of the program’s implementation.

A couple weeks ago the Louisiana Recovery Authority set aside $5 million dollars for assistance to residents who are suffering through Chinese drywall in their homes. This is an important step in the right direction towards the removal and replacement of the toxic wallboard. The Times-Picayune reports

LRA Executive Director Paul Rainwater said the authority’s staff will now design a program and make it available for public comment. The details of the application process, eligibility requirements and how the program would work are all still being developed, he said.

“You’re not even in the batter’s box, you’re still in the dugout talking about this thing,” Rainwater said in describing the status of the program’s implementation.

The Bradenton Herald recently ran a piece that outlines just how complex the worries homeowners with Chinese drywall have when looking towards the future. While the health effects of the toxic wallboard are not fully understood, and the money to fix the problematic homes is often not yet available, still other troubles may loom. With the great risk of claims emerging from the faulty homes, insurance companies still might bail when policy holders need them the most.

The Herald reports

Aside from health concerns and displacing homeowners, toxic drywall can cause roadblocks in homeowners’ insurance policies. In most cases, insurance companies are likely to reject claims over Chinese drywall and, in some circumstances, insurers will not renew policies.

The AP reports that Chinese manufacturers may flat out ignore the lawsuits filed against them by American homeowners. While it would not be the first time, Plaintiff parties are already aware of this possible outcome and are planning accordingly. Options can include those financial institutions who back the importing of the toxic wallboard, or even seizing the ships that brought the drywall into the country.

Lawyers representing homeowners and homebuilders who used drywall suspected of causing corrosion and possible health risks say they expect Chinese companies that made the wallboard to ignore hundreds of lawsuits filed against them in U.S. courts.

So, who’s going to be on the hook for any damages courts might award?

The South Florida Business Journal reports that Judge Fallon, in charge of handling the pre-trial MDL issues in New Orleans, Louisiana, has held one of the Chinese manufacturers in default judgment for not responding to the class action lawsuit filed against them. The order comes as Plaintiffs look to find out what legal options they have for overseas defendants who refuse to respond to the class actions filed against them. The article notes

A Louisiana federal judge has declared Chinese company Taishan Gypsum Co. – one of the largest manufacturers of contaminated Chinese drywall imports – in default in a class action lawsuit.

U.S. District Court Judge Eldon Fallon’s order holds the company in default for failing to respond to the lawsuit.