In Florida a jury awarded $2.5 million to a homeowner who was forced to move his family out of their house last year because of problems caused by Chinese-manufactured drywall. And in Louisiana drywall manufacturer Knauf settled two cases that were set to go to trial in federal court in New Orleans.

The attorney for the owner of 21 contaminated apartments in Slidell, Louisiana, said Knauf agreed to pay John Campbell and Slidell Property Management about $20,000 for lost rental income and to replace and test the drywall in one apartment. Knauf also agreed to pay for remediation and testing in a Metairie, Louisiana home, whose owner was among 2,000 plaintiffs in a class action suit filed in 2009. Chinese drywall cases in Louisiana cannot seek damages for pain or suffering, or any illness the drywall may have caused.
In the Florida case, a state court jury awarded $1.7 million for loss of enjoyment of life and $60,000 for stigma damages. The Florida jury assigned 55 percent of the liability to drywall distributor Banner, 35 percent to manufacturer Knauf, and 5 percent each to the importer and the shipper.

Meanwhile, an amended bill prohibiting insurance companies from canceling or not renewing policies of homeowners with Chinese drywall has passed both houses of the Louisiana Legislature and is on its way to Governor Bobby Jindal. In its final form, the measure prohibits an insurer from failing to renew or dropping a homeowner whose house had Chinese drywall or who filed a claim based on drywall imported from the People’s Republic of China before December 31, 2009. Commercial properties were dropped because of insurance industry opposition. The bill was also revised to eliminate a provision to keep insures from raising rates on policyholders with Chinese drywall.

Developments in Chinese Drywall Cases (New Orleans Times-Picayune 6/19/10)

June 22, 2010