A federal court in Louisiana has consolidated approximately 600 so-called “Chinese drywall” cases from across the country and is sending five of the cases to trial. The first trials are expected to begin by the end of this year.
Due to domestic drywall shortages, builders began importing drywall from China in 2004. It is estimated that 500 million pounds of drywall was imported into the United States. The lawsuits allege that the drywall is poisoned with sulphur and other chemicals, causing both health problems and appliances in the home like air conditioners to corrode quickly. While agencies like the Environmental Protection Agency and their state equivalents are still studying the issue, the alleged health problems include difficulty breathing and headaches. Because the drywall is installed throughout the home, there is not a simple solution to fixing the problem.
The defendants in the lawsuits include the suppliers, drywall manufacturers, home builders, and insurance companies. Most of the lawsuits come from Virginia, Louisiana, and Florida, where hurricane damage caused a high demand for the drywall. It is unclear why the problems are only surfacing in the United States. One theory is that the homes in the United States have less ventilation than their Asian counterparts.
By accelerating the cases to trial on the so-called “rocket docket”, the court will put to test both the plaintiff’s theories of liability and the defendant’s defenses. These test cases may help resolve some of the pending litigation or simplify some of the issues. Discovery is proceeding in all of the cases through the New Orleans court.