Wednesday, August 12, 2009

Important information about Chinese Produced Drywall

I was working with an out-of-town buyer two weeks ago and he mentioned the issue of Chinese produced drywall. He had an associate who had huge issues with this product in Florida. Today the National Association of Realtors forwarded this article via the Wall Street Journal:
Home owners in Florida, as well as other parts of the country, are claiming that drywall imported from China is making them sick and corroding the plumbing and HVAC systems in their homes.
An estimated 100,000 houses in the United States, most built in 2006 and 2007, may have some of the allegedly defective drywall, which is being investigated by a plethora of government agencies, including the Environmental Protection Agency and the Centers for Disease Control.
If these investigations result in a recall, it could be a costly proposition. Experts estimate that pulling out defective drywall and replacing corroded electrical wiring, plumbing and HVAC in an affected home could cost at least $100,000 per property.
Several class action lawsuits have been consolidated in federal court in New Orleans, but suing foreign-based manufacturers for liability is difficult and any judgment is almost impossible to enforce, experts say.
Source: The Wall Street Journal, M.P. McQueen (08/07/2009)

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